Buying your first home is exciting, but the process can feel like a maze of jargon, paperwork and unfamiliar costs. The good news is that it follows a clear order, and knowing what comes next removes most of the stress. This guide walks you through every step, from saving your deposit to collecting your keys.
Step 1: Check You Qualify as a First-Time Buyer
You’re generally a first-time buyer if you’ve never owned a residential property, in the UK or abroad, and you plan to live in the home yourself. If you’re buying with someone who has owned property before, you’ll usually lose first-time buyer status for the purchase, which affects things like stamp duty relief.
Step 2: Work Out Your Budget and Deposit
Most first-time buyer mortgages need a deposit of at least 5% of the property price, but the size of your deposit affects your interest rate:
- 5% deposit: widely available, though usually at higher rates
- 10% deposit: more choice and better pricing
- 15% or more: access to the most competitive rates
As a rough guide, lenders often offer around 4 to 4.5 times your annual income, depending on your outgoings and circumstances. Remember to budget for the costs beyond the deposit too: legal fees, surveys, any mortgage fees and moving costs.
If you’re still saving, a Lifetime ISA can help. You can pay in up to £4,000 a year and the government adds a 25% bonus. It’s available to people aged 18 to 39 and can be used for homes up to £450,000, so check the current rules before relying on it.
Step 3: Check Your Credit Report
Lenders judge you partly on your credit history. Before applying, check your report with the main UK credit reference agencies and look for errors, missed payments or old accounts you’ve forgotten about. Being on the electoral roll and paying bills on time both help. Try not to open new credit accounts or make large purchases on credit in the months before you apply.
Step 4: Speak to a Mortgage Broker
A broker can compare deals across the market, explain which lenders suit your circumstances (including self-employed income or a smaller deposit) and manage the paperwork for you. Many brokers, including fee-free ones, are paid by the lender rather than by you. Our guide on [how fee-free mortgage brokers get paid] explains how that works.
Step 5: Get a Mortgage in Principle
A Mortgage in Principle shows how much a lender is likely to lend you before you start viewing properties. It isn’t a guarantee, but many estate agents ask for one before booking viewings or accepting offers. Read our guide on [what a Mortgage in Principle is and how it works] for more detail.
Step 6: Choose Your Mortgage Type
The main options are:
- Fixed rate: your payments stay the same for a set period, usually two to five years, which makes budgeting easier
- Tracker: your rate follows the Bank of England base rate, so payments can rise or fall
- Discount: a reduction off the lender’s standard variable rate for a set period
Most first-time buyers choose a fixed rate for the certainty, but the right choice depends on your finances and how much risk you’re comfortable with.
Step 7: Find a Property and Make an Offer
With your Mortgage in Principle in hand, you can start viewing homes within your budget. Once your offer is accepted, ask the agent to take the property off the market and confirm the agreed price in writing.
Step 8: Submit Your Full Mortgage Application
Now the lender checks everything properly. You’ll usually need:
- Photo ID and proof of address
- Recent payslips (or accounts and tax returns if self-employed)
- Several months of bank statements
- Evidence of where your deposit came from
Be honest and consistent with the details you provide. Differences between your Mortgage in Principle and your full application are a common reason for delays.
Step 9: Valuation, Survey and Legal Work
The lender will arrange a valuation to confirm the property is worth what you’re paying. This is for their benefit, not a full survey, so consider a homebuyer’s report or building survey to uncover hidden problems. At the same time, your solicitor or conveyancer will carry out legal checks, review the contract and handle searches.
Step 10: Receive Your Mortgage Offer
Once the lender is satisfied, they issue a formal mortgage offer. Read it carefully, checking the rate, term, fees and any conditions. Your solicitor will also want to go through it with you.
Step 11: Exchange Contracts and Complete
On exchange, you and the seller become legally bound to the purchase and you usually pay your deposit. Completion, when the money moves and you get the keys, follows on an agreed date, often within a week or two. Buying a first home typically takes around three to five months from offer to completion, though it varies depending on the chain and how quickly everyone responds.
Stamp Duty for First-Time Buyers
In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 and 5% on the portion between £300,001 and £500,000. Above £500,000, first-time buyer relief doesn’t apply and standard rates are charged. Scotland and Wales have their own taxes with different thresholds.
Common First-Time Buyer Mistakes to Avoid
- Applying for new credit just before your mortgage application
- Forgetting to budget for legal fees, surveys and moving costs
- Focusing on the headline rate and ignoring arrangement fees
- Starting house-hunting before getting a Mortgage in Principle
- Changing jobs mid-application without speaking to your broker first
Frequently Asked Questions
How much deposit do I need as a first-time buyer?
Most lenders ask for at least 5% of the purchase price, though a larger deposit gives you access to better rates.
How long does it take to buy your first home?
Typically three to five months from an accepted offer to getting the keys, though some purchases are quicker and some take longer.
Can my family help with my deposit?
Yes. Most lenders accept gifted deposits from close family, provided they sign a letter confirming it’s a gift and not a loan.
Do I need a mortgage broker to buy my first home?
You don’t have to use one, but a broker can compare lenders, explain your options and manage the application, which many first-time buyers find helpful.
Is it worth using a Lifetime ISA for my deposit?
For many eligible buyers it is, thanks to the 25% government bonus, but the £450,000 property cap and the withdrawal rules mean you should check it suits your plans.
Ready to take the first step? Speak to our team for free, no-obligation first-time buyer advice.
