The complete first-time buyer guide
Buying your first home is exciting, overwhelming, confusing, and deeply meaningful, often all at once. There is a lot to learn, a lot of money involved, and a lot of people giving you advice, not all of it reliable.
This guide is designed to walk you through the entire process, from the moment you start saving to the day you get your keys. It will not cover every nuance of every situation (no single article can do that) but it will give you a clear, honest map of the journey ahead.
Use it as a reference you can return to at each stage. There are links throughout to more detailed articles on specific topics.
Step one: work out what you can afford
Before you look at a single property, you need to understand your numbers. This means two things: how much you can borrow, and how much you can actually afford to spend each month.
Your borrowing capacity is broadly determined by your income. Lenders typically offer between four and four and a half times your annual salary, sometimes more depending on your circumstances, minus the impact of your existing financial commitments and outgoings. If you have significant credit card balances, a car loan, or regular childcare costs, these reduce the amount a lender will offer.
Your affordability is a different question. Even if a lender would offer you £300,000, that does not mean a £300,000 mortgage is the right choice for your budget. Work out what a realistic monthly payment looks like and whether it leaves you with enough for everything else.
A mortgage adviser can give you a clear and specific borrowing figure based on your actual circumstances. This is worth doing early, before you start viewing properties, so that you know exactly what you are working with.
Step two: save your deposit
The minimum deposit required by most lenders is 5% of the property's purchase price. On a £250,000 property, that is £12,500. Some lenders and schemes allow lower deposits in specific circumstances, but 5% is the practical floor for most buyers.
A larger deposit unlocks better mortgage rates. The key thresholds are at 10%, 15%, and 20%: at each of these points, you access a lower tier of loan to value, which typically means a lower interest rate and a meaningfully cheaper mortgage over time.
Where you save matters too. A Lifetime ISA allows you to save up to £4,000 per year toward a first home, with the government adding a 25% bonus on top, that is up to £1,000 free money per year. The account must be open for at least 12 months before you use it, and the property must cost no more than £450,000. If you have not already opened one, it is worth doing so as early as possible.
Do not forget that your deposit is not your only upfront cost. Solicitor fees, a survey, stamp duty (depending on the purchase price), and moving costs all need to come from somewhere. More on these below.
Step three: get an Agreement in Principle
Once you have a rough idea of your deposit and borrowing capacity, the next practical step is to get an Agreement in Principle from a lender, also called a Decision in Principle or a Mortgage in Principle.
This is a written confirmation from a lender that, based on your financial information and a credit check, they would be willing to lend you a certain amount in principle. It is not a formal mortgage offer, and it is not binding. But it is taken seriously by estate agents and sellers, and without one, many agents will not book viewings.
Getting an AIP through a mortgage adviser is usually better than applying directly to a lender. An adviser will know which lenders are most likely to approve your application and at what rate, and can often obtain an AIP using a soft credit check, which does not leave a mark on your file.
Step four: find a property
With your AIP in hand and your budget clear, you can start viewing properties in earnest.
Work with multiple estate agents in your target area. Register with them, tell them exactly what you are looking for, and follow up regularly. The best properties in competitive markets often go quickly, and agents prioritise buyers they know are ready to proceed.
Online portals like Rightmove and Zoopla are useful, but they lag behind what agents already know. Building a relationship with local agents gives you earlier access.
When you find a property you like, view it more than once. View it at different times of day if you can. Ask about the neighbours, the heating system, the age of the roof, and anything else that is not immediately visible. A second viewing with a trusted friend or family member who can be objective is always worthwhile.
Step five: make an offer
When you are ready to make an offer, do so through the estate agent. Your offer will typically be below the asking price, though in competitive markets properties sometimes sell above asking. Research what similar properties in the area have actually sold for, not just what they were listed at, using Land Registry data or the sold prices sections on property portals.
When making your offer, confirm that you have your AIP in place and that you are ready to proceed. Sellers want certainty as much as they want price, and a credible buyer who can move quickly has real leverage.
If your offer is accepted, the property will typically be marked as "sold subject to contract." Nothing is legally binding yet, either party can still pull out, but it is the start of the formal process.
Step six: instruct a solicitor
As soon as your offer is accepted, instruct a solicitor or licensed conveyancer to handle the legal side of the transaction. This process is called conveyancing.
Your solicitor will carry out searches on the property, checking for planning issues, environmental risks, local authority matters, and other factors that might affect your decision to buy. They will review the contract from the seller's solicitor, raise any queries, and handle the transfer of funds at completion.
Your mortgage lender will also require legal representation, and in most cases the same firm acts for both you and the lender, keeping costs down.
Conveyancing costs vary but budgeting between £1,500 and £3,000 for a straightforward purchase is sensible. Do not simply choose the cheapest option: delays and errors in conveyancing are stressful and costly, and a good solicitor is worth paying for.
Step seven: submit your mortgage application
Once your offer is accepted, you will submit a full mortgage application. If you have been working with an adviser, they will do the heavy lifting here, gathering your documents, submitting the application, and liaising with the lender on your behalf.
You will need to provide payslips, bank statements, proof of identity, and proof of address. If you are self employed, you will need your tax returns and accountant's confirmation of your income. The exact requirements vary by lender.
The lender will also commission a valuation of the property to confirm it is worth what you are paying. This is their valuation, not yours: it protects them, not you. If you want an independent assessment of the property's condition, you need a survey.
Step eight: get a survey
A mortgage valuation is not a survey. The lender's valuation is a brief check that the property is worth the loan amount. It will not tell you whether the roof is leaking, whether there is subsidence, or whether the electrics need replacing.
For a first time buyer, a survey is strongly recommended. The most common options are a homebuyer's report, a more thorough inspection that identifies significant defects and risks, and a full structural survey, which is the most comprehensive option and is usually recommended for older or non standard properties.
A survey costs between £400 and £1,500 depending on the type and the property's value. It can feel like an additional expense when money is already stretched, but discovering a £15,000 roof problem after you have completed is far more painful than discovering it before.
Step nine: exchange contracts
Exchange of contracts is the legal point at which both buyer and seller become committed to the transaction. Before exchange, either party can pull out without legal penalty (though you may lose money you have already spent). After exchange, you are contractually bound.
On exchange, you pay your deposit to your solicitor, typically 10% of the purchase price, though this is negotiable. This deposit is at risk if you pull out after exchange, so only exchange when you are certain.
At exchange, you also agree a completion date. This is the date on which the property becomes yours.
You must have buildings insurance in place from the point of exchange. This is a condition of almost every mortgage, and it is your responsibility, not the lender's, to arrange it.
Step ten: completion
Completion is the day the remaining funds are transferred, the legal ownership passes to you, and you get your keys.
Your solicitor transfers the balance of the purchase price (including your mortgage funds, which the lender releases on the day) to the seller's solicitor. Once confirmed, the estate agent releases the keys.
Your solicitor will then register your ownership with the Land Registry and submit any stamp duty payment due.
And that is it. You own a home.
The costs you need to budget for
Beyond your deposit, the upfront costs of buying a property typically include:
- Stamp duty land tax. For first time buyers, there is relief available. Properties up to £425,000 are currently exempt, and partial relief applies on properties up to £625,000. Above that, standard rates apply. The rules have changed in recent years and may change again, so check the current thresholds before you budget.
- Solicitor and conveyancing fees. Allow £1,500 to £3,000.
- Survey costs. Allow £400 to £1,500 depending on the type of survey.
- Mortgage arrangement fees. Some mortgage products carry an arrangement fee of £500 to £1,500. These can usually be added to the mortgage rather than paid upfront, though you will pay interest on them if you do.
- Removal and moving costs. Highly variable, but allow at least £500 to £1,500 for a standard move.
How a mortgage adviser helps
Buying a home is complicated, and the mortgage market is large and varied. A whole of market mortgage adviser searches across all available lenders to find the most suitable deal for your circumstances, not just the products their own bank offers.
They can also help you understand your borrowing capacity, guide you through the application process, liaise with the lender on your behalf, and advise on protection products to make sure you and your home are properly covered.
For most first time buyers, working with an adviser rather than going direct to a bank costs nothing extra and saves a significant amount of stress.
Where to go for more detail
Each step of this guide has its own dedicated article. If something here has raised a question, the following pieces go into more depth:
This article is for informational purposes only and does not constitute financial advice. Always speak to a qualified mortgage adviser before making decisions about borrowing.