The Ultimate First Time Buyer Guide
Navigate the home buying process with confidence. From saving your deposit to getting the keys, we break down every step you need to know.
7 Steps to Buying Your First Home
Buying a property can feel overwhelming, but breaking it down into manageable steps makes the process clear and achievable.
Assess Your Finances & Credit
Check your credit report for errors and register on the electoral roll. Calculate your monthly budget to understand how much mortgage repayment you can comfortably afford.
Save for a Deposit
Aim for at least 5%–10% of the property value. Consider opening a Lifetime ISA (LISA) to receive a 25% government bonus on your savings, up to £1,000 per year.
Get an Agreement in Principle
Obtain a Mortgage Agreement in Principle (AIP) from a lender or broker. This shows estate agents and sellers that you are a serious, credit-checked buyer.
Find a Property & Make an Offer
Search for homes within your budget. When you find the right one, submit a formal offer through the estate agent. Be prepared to negotiate.
Instruct a Conveyancer
Hire a solicitor or licensed conveyancer to handle the legal work, including local authority searches, reviewing the leasehold/freehold, and managing funds.
Survey and Mortgage Application
Submit your full mortgage application. Commission an independent homebuyer’s survey to identify any structural issues before you are legally bound.
Exchange Contracts & Completion
Sign and exchange legal contracts, making the sale legally binding and securing your deposit. On completion day, the funds are transferred, and you receive the keys to your new home.
Key Costs for First Time Buyers
Beyond the deposit, there are several additional costs to factor into your home buying budget.
| Expense Category | Estimated Cost & Details |
|---|---|
| Deposit | 5% – 20% of property value. Larger deposits secure better mortgage interest rates. |
| Stamp Duty (SDLT) | £0 on the first £425k for first-time buyers (on properties up to £625k in England/NI). |
| Legal & Conveyancing | £800 – £1,500. Includes solicitor fees, local searches, and Land Registry fees. |
| Property Survey | £400 – £1,500. Varies by level: Condition Report, HomeBuyer Report, or Full Structural. |
| Mortgage Fees | £0 – £2,000. Arrangement, booking, or valuation fees. Can sometimes be added to the loan. |
| Moving & Initial Setup | £300 – £1,000+. Removal vans, initial furniture, and utility setup costs. |
First Time Buyer FAQ
Answers to the most frequently asked questions about buying your first home in the UK.
The minimum deposit for most residential mortgages is 5% of the property’s purchase price. However, saving a 10% to 15% deposit will significantly improve your chances of mortgage approval and unlock much better interest rates.
First-time buyers in England and Northern Ireland pay 0% Stamp Duty Land Tax (SDLT) on the first £425,000 of a property’s value, provided the total purchase price is £625,000 or less. Properties above this threshold follow standard SDLT rates.
An Agreement in Principle (also known as a Decision in Principle) is a written statement from a lender estimating how much they might be willing to lend you. It is not a guaranteed mortgage offer, but it proves to estate agents and sellers that you are a serious buyer.
Using a whole-of-market mortgage broker is highly recommended for first-time buyers. They can access deals not available directly to the public, assess your unique financial situation, and handle much of the paperwork, often at no direct cost to you (they receive a commission from the lender).