Buying your first home mixes excitement with nerves as you face countless decisions.
From saving for a deposit to finding the right property, the journey can feel overwhelming without proper guidance.
Many first-time buyers miss important steps or underestimate costs, leading to stress and financial strain. But with a clear roadmap and professional support at key stages, you can move through the process with confidence.
Here are 11 tips to help you get started.
Getting Your Finances in Order
From Saving to Securing: Building Your Home Deposit
Saving for a deposit is your first challenge when buying a home.
Most lenders ask for at least 5% of the property’s value, but putting down 10%, 15% or even 20% can unlock better mortgage rates and save you thousands over the life of your loan.
If saving feels impossible, you’re not alone.
The average first-time buyer deposit in the UK now stands at around £60,000, with stark regional differences. In London, you might need closer to £120,000, while in the North East, £30,000 might be enough to get started.
The government offers several helping hands. The mortgage guarantee scheme encourages lenders to offer 95% mortgages, meaning you only need a 5% deposit. The First Homes scheme in England offers discounts of 30-50% on certain new-build properties for first-time buyers.
Family support opens more doors. A gifted deposit from parents or grandparents is accepted by most lenders, though they’ll want confirmation the money doesn’t need repaying. Some families use family offset mortgages, where a relative’s savings help secure your mortgage without them giving the money away.
When saving, create a dedicated savings account separate from everyday accounts. Setting up automatic transfers on payday helps build your fund consistently, while cutting non-essential spending can speed up your progress.
Be aware of the difference between your mortgage deposit and the exchange deposit.
The mortgage deposit is what you put down overall, while the exchange deposit (usually 10% of the purchase price) is paid when you exchange contracts to show commitment to the purchase.
Beyond the Price Tag: Understanding Your True Budget
Knowing what you can truly afford goes beyond the headline purchase price.
Lenders generally offer up to 4.5 times your annual income as a mortgage, though this varies based on your financial situation. If affordability is tight, consider joint mortgages with parents, guarantor mortgages, or Joint Borrower Sole Proprietor (JBSP) arrangements where family members boost your borrowing power without going on the property title.
When budgeting, factor in all the extra costs.
For a home around £500,000, you’ll need to prepare for:
- Stamp Duty
- Legal fees of £1,500-£2,000
- Survey costs of £400-£1,500 depending on the type
- Mortgage arrangement fees (often around £1,000)
- Moving costs, which can run into hundreds or thousands depending on how much you’re moving
Don’t forget the ongoing costs.
Your monthly budget needs to cover mortgage payments, council tax, insurance, utilities, maintenance and service charges if applicable. For a £500,000 property with a £450,000 mortgage at 4.5% over 25 years, monthly payments would be around £2,500, with council tax adding another £150-£300 depending on your area.
Student loans reduce your affordability because they’re deducted from your income in lenders’ calculations.
For someone earning £50,000 with student loan repayments of £200 monthly, this could reduce your maximum mortgage amount by around £20,000. Overdrafts and other debts also impact how much you can borrow, so paying these down before applying can help.
Try using online mortgage calculators to get a rough idea of what you might be able to borrow, but remember these are just estimates. A broker can give you a more accurate figure based on your full financial picture.
Credit Score Checkup: Boosting Your Borrowing Power
Your credit score plays a key role in mortgage approval and the rates you’re offered. Lenders use it to judge how reliable you’ll be at repaying your mortgage, so it’s worth checking yours early on.
Get your statutory credit report free from the UK’s three main credit reference agencies: Experian, Equifax and TransUnion.
Each might hold slightly different information, so checking all three gives you the full picture.
If your score needs work, start improving it at least six months before applying for a mortgage. Get on the electoral roll at your current address, pay bills on time, keep credit card balances low, and avoid applying for new credit in the months before your mortgage application.
Common credit issues for first-time buyers include limited credit history and financial links to people with poor credit. Check if you’re financially associated with ex-partners or former housemates and ask for a “notice of disassociation” if needed.
Even small changes can make a difference.
Being “mortgage ready” means having your finances in the best shape possible.
Beyond your credit score, lenders will assess your income stability, outgoings, and deposit. Self-employed applicants usually need at least two years of accounts to prove income stability.
Preparing for Your Mortgage
Choosing the Right Mortgage
Finding the right mortgage involves more than just looking for the lowest interest rate.
You’ll need to decide between:
Fixed-rate mortgages: Your interest rate stays the same for a set period (usually 2-5 years), making budgeting easier but potentially missing out if rates fall.
Variable-rate mortgages: These include tracker mortgages (following the Bank of England base rate) and standard variable rates. They can go up or down, offering flexibility but less certainty.
You’ll also choose between repayment mortgages (paying off both interest and capital each month) and interest-only mortgages (paying just the interest, with the capital due at the end).
For first-time buyers, repayment mortgages are the most popular and are preferred by lenders.
Mortgage terms typically range from 25-35 years. A longer term means lower monthly payments but more interest paid overall. Some lenders now offer terms up to 40 years, making monthly payments more affordable but significantly increasing the total cost.
Watch out for mortgage fees, these can include:
- Arrangement or product fees
- Booking fees
- Valuation fees
- Early repayment charges
Sometimes it’s worth paying a higher fee for a lower interest rate, but this depends on your loan size and how long you’ll keep the mortgage. A whole-of-market mortgage broker can help you work out the most cost-effective option for your situation.
Securing an Agreement in Principle
An Agreement in Principle (AIP), also called a Decision in Principle or Mortgage in Principle, is a statement from a lender showing how much they might lend you. While not a guarantee, it proves to estate agents and sellers that you’re a serious buyer who can afford the properties you’re viewing.
Getting an AIP is usually quick and can be done online. The lender will perform a soft credit check and ask for basic information about your income and outgoings. Most AIPs can be completed in under an hour, with many available instantly.
AIPs typically last between 30-90 days depending on the lender. If your circumstances change or it expires before you find a property, you can apply for a new one without much hassle.
You don’t need multiple AIPs from different lenders. One is enough to demonstrate your buying position. When you find a property and are ready to proceed, your broker can search the whole market for the best mortgage deal.
Get the help and advice you need, plus access to over 100 different lenders
Award winning service
Independent mortgage advice
FCA Regulated
Finding Your Property
Where you buy affects both your daily life and your property’s future value. Take time to research areas thoroughly before viewing homes.
Transport links matter more than many buyers realise. In London, being within a 10-minute walk of a tube station can add up to 10% to a property’s value. Check your potential commute in person during rush hour – a 30-minute journey on paper might be much longer in reality.
School catchment areas significantly impact UK property prices.
Use the School Checker tool on Rightmove to see school locations and Ofsted ratings. Even if you don’t have children, good schools can help maintain property values and make selling easier in the future.
Crime rates vary street by street in many UK towns. Lots of websites offers crime statistics by postcode, giving you a clearer picture of neighbourhood safety.
Future development plans can dramatically affect property values. Check your local authority’s planning portal for applications nearby. New transport links often boost prices – properties near Elizabeth Line stations saw values increase by up to 40% after the line was announced.
In many UK cities, border areas offer good value. Buyers priced out of popular Chorlton in Manchester have moved to neighbouring Whalley Range, while those unable to afford Clifton in Bristol have found similar properties in nearby Redland for less.
Visit potential areas at different times. A peaceful street on a Tuesday morning might transform on a Friday night or during school run. Talk to locals in pubs and cafes, and imagine your daily routines there.
Making the Purchase
When you’ve found the right property, making a successful offer requires research and strategy. Check recent sold prices for similar properties in the area using the Land Registry’s price paid data or property websites.
First-time buyers have a significant advantage – you’re not in a chain involving other buyers and sellers, which reduces complications and potential delays. Highlight this when making your offer, as many sellers prefer the security of a chain-free sale.
When making your offer, do it through the estate agent (verbally and in writing) and provide:
- Your position as a chain-free first-time buyer
- Proof of your Agreement in Principle from a lender
- Confirmation of your deposit and its source
- Your proposed timeline for completion
- Any conditions of your offer
Be prepared for negotiation. If your initial offer is rejected, consider whether you can increase it or negotiate on other aspects like completion date or included items.
Remember that nothing is legally binding until contracts are exchanged, so keep your communication with the estate agent regular and positive to maintain momentum and prevent gazumping (when the seller accepts a higher offer after accepting yours).
Handling the Conveyancing Process
Once your offer is accepted, you’ll need a property solicitor or conveyancer to handle the legal side of things.
They’ll manage contracts, conduct searches, deal with the Land Registry, handle the transfer of funds, and pay any Stamp Duty Land Tax on your behalf.
When choosing a conveyancer, ask for recommendations, check reviews, and compare quotes.
Cheaper isn’t always better – poor communication or slow work can cause frustrating delays. Conveyancing fees typically range from £800-£1,500 plus disbursements.
The conveyancing process involves:
- Instructing your solicitor and paying an initial deposit
- Receiving and reviewing the draft contract
- Conducting local authority and other searches
- Raising enquiries with the seller’s solicitor
- Signing and exchanging contracts
- Completing the purchase
Local searches uncover important information about the property.
They include:
- Local Authority searches (planning history, road access, building control)
- Environmental searches (contamination, flood risk)
- Water and drainage searches
- Chancel repair liability searches
- Mining searches in relevant areas
These typically cost £200-£400 and take 2-4 weeks, though some London boroughs can take up to 8 weeks for local authority searches.
Conveyancing usually takes 8-12 weeks from offer acceptance to completion, but complications can extend this timeline. Common delays include slow search returns, complex lease issues, or problems in the property chain.
Stay in regular contact with your solicitor and respond promptly to requests for information or documents. Good communication can significantly speed up the process.
Applying for a Mortgage
Converting your Agreement in Principle to a full mortgage offer involves a formal application through your broker or directly with the lender.
You’ll need to provide:
- Proof of identity and address
- Last three months’ bank statements
- Last three months’ payslips and/or P60 (or tax returns if self-employed)
- Proof of deposit and its source
- Details of the property you’re buying
Once you’ve applied the lender will conduct a valuation of the property to confirm it’s worth what you’re paying and suitable security for the loan. This basic valuation is for the lender’s benefit, not yours, which is why a separate survey is recommended.
The underwriting process typically takes 2-4 weeks, during which the lender assesses all aspects of your application including affordability, credit history, and property suitability. They may come back with questions or ask for additional documents, so respond promptly to keep things moving.
Common queries include explaining large deposits or transfers in your bank statements, providing details of bonuses or overtime, or clarifying any discrepancies in your application.
Having documents ready and organised speeds up this process considerably.
Once approved, you’ll receive a formal mortgage offer, usually valid for 3-6 months. Review this carefully with your broker to understand all conditions and ensure everything is correct.
You don’t legally need life insurance to get a mortgage, but it’s strongly recommended to protect your family and home if something happens to you. Other insurances to consider include buildings insurance (required by most lenders), contents insurance, and income protection.
A mortgage illustration (also called a Key Facts Illustration or European Standardised Information Sheet) provides a detailed breakdown of your mortgage, including monthly payments, total cost, fees, and features. This helps you understand exactly what you’re signing up for and compare different mortgage products.
Commonly asked questions by first-time buyers
Are you considering buying your first home? If so, you’re likely wondering where to start and what to expect. Here are 15 questions commonly asked by first-time buyers to help get you started.
Getting the Right Property Survey
The mortgage valuation isn’t a detailed inspection of the property’s condition.
A proper survey can reveal issues that might affect your decision or help you negotiate on price.
There are three main types of survey:
- Condition Report (Level 1): Basic overview of the property’s condition, highlighting urgent issues. Suitable for newer, standard-construction properties. Costs around £400.
- Homebuyer Report (Level 2): More detailed, including advice on defects, repairs and maintenance. Good for properties under 50 years old in reasonable condition. Costs £450-£1,000.
- Building Survey (Level 3): Comprehensive examination of the property’s structure and condition. Recommended for older properties, unusual buildings, or those needing major work. Costs £600-£1,500.
The cost varies depending on the property value and size, but it’s a worthwhile investment. For a typical first home around £500,000, a Homebuyer Report offers a good balance of detail and cost.
Survey findings vary widely across UK housing stock.
Period properties often have issues with damp, timber problems, or outdated wiring, while newer homes might show snags like poor finishing or drainage issues.
If the survey reveals significant issues, you have several options:
- Renegotiate the price based on repair costs
- Ask the seller to fix the problems before completion
- Continue with the purchase as planned (if the issues are manageable)
- Withdraw your offer (if the problems are too severe)
For older properties or those with obvious issues, consider getting specialists (like electricians or damp experts) to provide more detailed reports and quotes for work needed. This gives you more accurate figures for negotiation.
The Value of Professional Support
A good mortgage broker transforms your home-buying journey.
They have access to the whole market, including deals not available directly to consumers. For first-time buyers especially, their expertise can be invaluable in helping you through the mortgage choices.
Brokers help by:
- Assessing your financial situation realistically
- Finding the best mortgage products for your circumstances
- Handling paperwork and applications
- Communicating with lenders on your behalf
- Solving problems that arise during the application process
Brokers also know which lenders are most likely to accept your specific circumstances.
If you’re self-employed, have variable income, or have a smaller deposit, this knowledge can be the difference between approval and rejection. Some lenders have appetite for scenarios that others won’t touch, and brokers know which ones to approach.
Brokers must be qualified and regulated by the Financial Conduct Authority (FCA), giving you protection and peace of mind. They must hold at least a Level 3 Certificate in Mortgage Advice and Practice (CeMAP) or equivalent qualification.
Broker fees vary. Some charge a flat fee (£300-£500 is common), others charge a percentage of the loan amount (usually 0.3-1%), and some receive commission from lenders without charging you directly. Always check their fee structure before proceeding and understand exactly what services are included.
Next Steps
Buying your first home is a journey with many steps, but breaking it down makes it manageable.
Start by getting your finances in order – build your deposit, understand your budget, and improve your credit profile. Then prepare for your mortgage by choosing the right type and securing an Agreement in Principle.
When you’re ready to hunt for properties, research locations thoroughly and view properties methodically. Finally, when making your purchase, approach offers strategically, find good legal representation, finalise your mortgage, and invest in a proper survey.
Throughout this process, professional support makes all the difference. A mortgage broker finds you the best deals and guides you through the application process, while a good solicitor ensures the legal side runs smoothly.
Taking the first step onto the property ladder is a significant achievement. By being well-prepared and well-advised, you’ll approach it with confidence and set yourself up for a successful purchase and a happy home.
Ready to start your home-buying journey?
The first step is speaking with a whole-of-market mortgage broker who can assess your situation and outline your options. They’ll help you understand what’s possible and create a plan to achieve your goal of homeownership.
Frequently Asked Questions
Most lenders require at least 5% of the property value as a deposit for first-time buyers. However, saving a larger deposit (10-20%) will give you access to better mortgage rates. The actual amount varies by region – in London you might need £60,000+ while in the North East £30,000 might be sufficient.
Read more: Guide to Deposits
Yes, but your options may be limited. Some specialist lenders cater to those with poor credit, but you’ll likely face higher interest rates and need a larger deposit. Focus on improving your score before applying by paying bills on time, reducing debt, and getting on the electoral roll.
Yes, you need a solicitor or licensed conveyancer to handle the legal aspects of buying a property. They’ll conduct searches, handle contracts, deal with the Land Registry, manage the transfer of funds, and pay stamp duty on your behalf.
A lender’s mortgage valuation is a basic assessment for the lender to confirm the property is worth what you’re paying. It’s not a detailed inspection. A proper survey (Condition Report, Homebuyer Report, or Building Survey) examines the property’s condition in detail and highlights potential issues or necessary repairs.
Boost your credit score, save a larger deposit, reduce existing debts, ensure you’re on the electoral roll, avoid frequent job changes before applying, and organise your finances to demonstrate consistent income and responsible money management. Using a mortgage broker can also significantly improve your chances.
Read more: How to get mortgage ready
When a lender approves your mortgage application they will send you a mortgage offer.
Most mortgage offers are valid for 3-6 months, giving you time to complete the purchase. If your offer expires before completion, you may need to reapply, potentially at different rates. Some lenders offer ‘mortgage offer extensions’ if delays are beyond your control.
Read more: How long does a mortgage offer last?
