First-time buyers, a guide to buying your first home

Buying your first home involves saving a deposit, securing a mortgage, instructing a conveyancer, and completing the legal process of transferring ownership. In England and Wales, the journey typically takes three to six months from offer accepted to moving in, and purchase costs beyond your deposit can run to £3,000-£5,000 or more depending on the property.

This guide covers everything you need to know as a first-time buyer: who qualifies, what you can afford, the government schemes available, and a step-by-step walkthrough of the full buying process.

A first-time buyer is someone who has never owned a residential property, either in the UK or abroad. This also includes properties that were either inherited or gifted. If you have ever had your name on a title deed, regardless of how you came to own that property, you will not qualify as a first-time buyer.

If you are purchasing with another person or multiple people, everyone involved in the purchase must meet the criteria for first-time buyer incentives and schemes.

Not sure if you qualify? If you answer “yes” to any of these, you will not qualify as a first-time buyer:

• Have you ever purchased a property in the UK or abroad?
• Have you ever inherited or been gifted a property?
• If buying jointly, has your co-buyer ever owned a property?

The first thing you need to ask yourself as a first-time buyer is, can I afford to buy a home?

Everyone’s situation is unique, factors like location, property price, deposit size, and more can all sway the costs. Conveyancing, surveys, removals, insurance – costs can also pile up fast.

You biggest cost will likely be your deposit. Many first-time buyers typically put down a 10% deposit.

You will also need to secure a mortgage for the portion of the purchase price your deposit does not cover. For example, on a £300,000 property with a 10% deposit (£30,000), you would need to borrow the remaining £270,000 from a lender.

Before you start house hunting, it is worth getting a Mortgage in Principle (MIP), sometimes called an Agreement in Principle.

This gives you a reliable indication of how much a lender is likely to offer you, and estate agents will often ask for one before recommending properties within your budget.

Most lenders provide an MIP for free via their website, or you can arrange one through a mortgage broker.

Mortgages can seem complex, but most first-time buyers are choosing between two main types: fixed-rate and variable-rate.

With a fixed-rate mortgage, your monthly repayments stay the same for an agreed period, typically two to five years. Your payments will not change even if interest rates rise or fall during that time, making budgeting straightforward.

With a variable-rate mortgage, your repayments move up or down in line with interest rates. This can work in your favour when rates fall, but equally your payments could rise. Two common types of variable mortgage are:

• Tracker mortgages, which follow the Bank of England base rate directly
• Discounted variable mortgages, which are set at a discount below your lender's standard variable rate

For most first-time buyers, a fixed-rate mortgage is the simpler starting point. It gives you payment certainty while you settle into homeownership. A mortgage broker can help you compare what is currently available and find the right deal for your circumstances.

Securing a mortgage can be tough, especially as a first-time buyer. Here are the key things you can do to improve your chances:

A mortgage broker is not essential, but for most first-time buyers they are worth considering. They search the market on your behalf, have access to deals not always available directly, and can help you avoid lenders unlikely to approve your application.

When choosing a broker, ask for recommendations, check their reviews on Google or Trustpilot, and compare fees and experience before committing. Do not settle for the first one you speak to.

We know that saving up for a deposit can feel like an endless marathon. But before leaping into house-hunting, let’s talk about budget. Some additional costs come with purchasing a property that you might not be aware of as a first-time buyer.

Let’s take a look into some of those extra cost you need to factor in when purchasing your first home:

1. Conveyancing fees

You’re going to need a conveyancer to deal with the legal duty of purchasing a property.

What is a conveyancer and what do they do?

Expect to pay between £800 and £2,000 depending on the property that you are purchasing.

2. Disbursements

These include any expenses related to your property purchase that your conveyancer incurs or pays on your behalf. Including:

• Land registry fees: For registering property ownership and deeds (£90 - £140)
• Search fees: For conducting local authority, water/draining, and environmental searches (£250)
• Identity/verification checks: Your conveyancer needs to make sure that you are you, and you have the right to buy a property in the UK, this also protects against money laundering and fraud (£20 -£30)
• Bank transfer fees: There is a small fee to transfer large amounts of money, something that your conveyancer will manage (£20 -£25 per transaction)

Depending on your property purchase, you may also incur additional costs for things like a gifted deposit, Help to Buy supplement, or Lifetime ISA supplement. Your conveyancer will be able to break all this down for you.

3. Stamp Duty Land Tax (SDLT)

SDLT is tax paid when purchasing a property in England above a certain price threshold.

First-time buyers have a higher threshold, and you may not have to pay any if your property is priced below a certain amount.

We’ll go into more detail about SDLT shortly.

In Wales, land tax is called Land Transaction Tax (LTT). It works slightly differently from SDLT in England, there is no specific relief for first-time buyers, but the first £225,000 of your property purchase in Wales has an LTT rate of 0% for any home buyer.

4. Surveys

A survey is an inspection by a qualified surveyor to evaluate the condition of a home for potential issues, defects, and repairs.

There are different types of surveys, with some being more thorough than others, making them more expensive. The property value and location will also impact the cost of your survey.

You can expect to pay around £400 - £1500 for a survey depending on these factors. Remember that a survey is separate from a mortgage valuation.

What type of survey do I need?

5. Mortgage valuation

A mortgage valuation is charged by whoever your lender is. They want to make sure that the property is worth what you are paying for it. The price you’ll be paying will depend on the size, type, and price of the property.

You can expect to pay between £100-£600.

6. Mortgage fee

Sometimes known as an ‘arrangement fee’. This is the cost that your lender will charge you for setting up your mortgage. The fee is typically between £0 and £2,500.

It’s common to add this fee to the mortgage total, meaning it may not be an upfront cost.

7. Mortgage broker

A mortgage broker is your middleman, connecting you with lenders to find your ideal home loan.

Some brokers earn commissions from lenders, while others charge fees to borrowers, or both. If fees apply, expect to pay between £150-£600, depending on their model and your mortgage details.

8. Building insurance

As part of securing your mortgage, your lender will require you to take out building insurance. Building insurance covers damage against your property such as fires, floods, or storm damage.

Building insurance is an annual fee and will cost between £100 - £400 per year depending on your property type and size.

9. Removal costs

Most often, people will pack up their home themselves, and pay for removals to transport their belongings. Removals can cost anywhere from £350 up to £2,000+ depending on the amount of belongings and where you are moving to.

As a first-time buyer, you might not have a house full of belongings to move, you may be able to do it yourself by renting a van or having family help.

First-time buyers in England pay a reduced rate of Stamp Duty Land Tax (SDLT). From 1 April 2025, the thresholds are:

For example, on a £400,000 purchase you would pay 5% on the £100,000 above the threshold, meaning an SDLT payment of £5,000.

Note that SDLT only applies in England. If you are buying in Wales, Land Transaction Tax (LTT) applies instead. There is no first-time buyer relief for LTT, but the 0% rate applies to all buyers on the first £225,000.

Learn more about SDLT here.

Buying your first home can be equally as exciting as it is overwhelming. However, some government initiatives are designed to help first-time buyers get on the property ladder.

You can use a LISA to buy your first home or save for later in life. If you are using it to buy a home, the property value can be a maximum of £450,000.

You can open a LISA between the ages of 18 – 39 and must make your first payment into your account by the age of 40. You can put up to £4,000 each year in your LISA until you’re 50. The government will add a 25% bonus to your savings, up to a maximum of £1,000 a year.

If you’re buying with another first-time buyer who has a LISA, you can both use your LISA towards the same property.

It’s important to note that there’s a penalty for withdrawing money from your LISA for not putting it towards a deposit or withdrawing later in life before you are 60. You’ll also lose the government bonus for withdrawing.

Learn more about LISA’s here.

Help to Buy was created to help first-time buyers like yourself save up for a house deposit.

If you opened a Help to Buy ISA before November 30^th 2019, you can keep saving into it until November 2029, with an extra year after that to claim your government bonus. You can no longer open a Help to Buy account.

Here’s how it works: The government will top up any contributions to the account by 25%, up to the contribution limit of £12,000. You are allowed to deposit £200 per month into your Help to Buy. For every £200 you save, the government will contribute £50. You can earn a maximum of £3,000 from the government if you save the contribution limit.

Buying with another first-time buyer who has a Help to Buy ISA? You both get to use your bonuses, so up to £6,000 towards your house deposit.

Learn more about Help to Buy ISA’s here.

There are also government schemes in Wales, whilst we can act on property sales and purchases in Wales, we do not act on the government’s help to buy schemes.

Help to Buy – Wales is a scheme designed to support buyers of new build homes. The scheme provides a shared equity loan to buyers. It supports the purchase of homes up to £300,000 (until March 2025) through a registered Help to Buy - Wales builder.

Help to Buy Wales is made up of 3 parts:

• You have a deposit of at least 5%
• The Welsh Government provides an equity loan for up to 20% of the property price
• You secure a mortgage for the remaining balance

Learn more about Help to Buy Wales here.

Homebuy – Wales supports people who couldn’t otherwise afford to buy a property by providing an equity loan to help buy an existing property.

This scheme is more restrictive than others, you need to meet certain requirements to be accepted. It is not always available either, if this is the case, you could be put on a waiting list.

Learn more about Homebuy Wales here.

With everything factored in above and you’ve got your deposit and MIP ready, the property search begins – exciting times! But avoid rushing big decisions in the first-time buyer euphoria.

To help, we’ve put together this step-by-step guide to buying your first property:

You’ve probably already started browsing the market, but now that you’re ready to buy you can start taking it a little more seriously.

Be realistic with what you can afford and where you want to live. Remember, this is your first home, it doesn’t mean it’s going to be your last.

It’s great to start your search online in places like Rightmove and Zoopla, they can help you get a feel for the market and see what’s available.

Home wishes look different for everyone – buying with friends or a partner? Hoping to fill rooms with little ones soon? Wherever you’re at, your home will need to accommodate you for now, and at least the short-term future.

Ask yourself things like:

• How many bedrooms or bathrooms do I need?
• Do I need to be close to work or schools?
• Do I want to be in a built-up area or somewhere more rural?
• Is having a garage important?
• What kind of garden do I need?

Break down your wishlist into “must-haves” and “wants”, it helps with clarity. Be honest – what’s non-negotiable for your day-to-day life? Flexibility will widen your options. And maybe you’re open to places that need a little TLC, also known as a “fixer-upper”.

Although fixer-uppers can be more work, it’s a great way for first-time buyers to add value to their property.

What questions should I ask when viewing a property?

As a first-time buyer, this is likely to be the biggest purchase of your life so far. Make sure you ask plenty of questions at house viewings and find out as much as possible. If you don’t ask, you might not find out everything you need to.

Here’s some to start you off:

• How old is the property? What updates/renovations have been done?
• Are there any major repairs or replacements needed (roof, heating, electrical)?
• What are the utilities costs on average (electricity, water, gas)?
• Does the property have any history of water damage, flooding, or mould issues?
• What amenities are included (appliances, fixtures)? What’s excluded?
• What is the neighbourhood like in terms of noise, safety, and amenities?
• How long has the property been on the market? Why are the sellers moving?
• Have there been any major problems with pests or infestations?
• What kind of insulation, windows, and climate control features are in place?
• What internet/cable providers service the area?

Buying a home is exciting, but try to think long-term too, is the house going to be easy to sell in future? Where could you add value?

You could view one property and fall in love, or you might view 20 and still not find “the one”. Either way, you’ll find the right home eventually, and when you do, it’s time to put in an offer.

This marks a major milestone for a first-time buyer. We get that it can be equally as exciting as it is nerve-wracking. Here’s some tips for when that moment comes:

• Remain calm, and don’t let the excitement push you to overpay, or even offer the asking price. If there are no other bidders, you can offer below and see how the seller responds.
• Do your research. Your estate agent should advise you on your offer. Do some digging yourself and check how much similar houses in the area previously sold for.
• If you’re ready to move, make it clear. This can help sellers move their chain a long and may increase your chances.
• If there’s a lot of interest in the property, you could make your first offer your best offer if you think it gives you the best chance and you want to avoid potentially long negotiations.
• Have patience. It’s exciting, we know. But purchasing a house can take time, and you should take your time too. There’ll always be more chances if you need them.

Congratulations if they accept! The hard work has paid off. But if not, keep your spirits up and keep looking. 

Once you’ve had your offer accepted, it’s time to apply for a mortgage. You will need to provide your lender with lots of information about you and your finances. To help, it’s best to be prepared to allow the process to run as smoothly as possible.

Get your documents ready ahead of time to avoid a last-minute scramble. Essential documents you’ll need to compromise include:

• Payslips covering the last 3 months
• Bank statements for the last 3-6 months
• P60 form from your employer
• Passport and/or driving license
• Property listing of the home you’re purchasing
• Proof of your national insurance number

You could be asked to provide more information about this, each situation varies. If you’re self-employed, you’ll likely need to demonstrate more details about your finances and work.

Once you’ve had an offer accepted, you’ll need to instruct a conveyancer to act on your behalf to deal with the legal side of purchasing a property.

Your conveyancer will work with you from the moment you instruct them through to when you move in. It’s important to instruct a conveyancer you trust.

Between now and when you exchange contracts, your conveyancer will:

• Perform ID checks on the client and source of funds
• Review title deeds and prepare contract documents
• Carry out searches (local, environmental, drainage etc.)
• Make enquiries to the seller regarding the property
• Advise client on survey/valuation needed
• Go through the conditions of the mortgage offer
• Explain the contract terms and clauses to the client
• Negotiate terms between parties if needed
• Answer the client's questions throughout the process
• Set target dates for exchange once all info is gathered

Learn more about what a conveyancer is and what they do in our guide to conveyancing here.

Top tip: Buyer beware

Buyer beware is a principle that places the responsibility on the buyer to thoroughly inspect a property and find out the information they need. There is no general responsibility for the seller to disclose physical problems with a property.

Your conveyancer should be able to advise you on how to best approach property purchasing, they will also be able to look into concerns or queries you have and declare them to you.

Your offer is accepted, and your conveyancer is delving into the legal intricacies of your property purchase, it’s the perfect moment to cast an expert eye on the home you’ll soon enough call yours.

House surveys serve as your property health check, peeling back the layers (not literally) to unveil any quirks or structural secrets.

While surveys aren’t required, any issues should be brought to light before you purchase the property. Unearthing hidden defects or damages could empower you to renegotiate or rethink your offer, ensuring you’re making an informed decision. A little extra insight could go a long way.

For those stepping into living in their own property for the first time, the need for this step might not immediately dawn on you. Your collection of furniture and possessions may not be vast, making a DIY move or a van rental quite feasible.

But maybe you’ve been renting for a few years, or you’ve inherited a lot of belongings. If you’re in this situation you might want to look into booking a removal company to help with your move.

Keep in mind that the stars align on completion day, so scheduling your removals for the same date is crucial. Double-check their availability to ensure a seamless transition. The removal cost hinges on the number of items making the journey and the distance between your current and future home.

Exchanging contracts is a key part of the property purchase journey. This is when signed contracts are swapped between the buyer’s and seller’s conveyancer. Key information is filled in, signed, and then returned.

You can breathe a sigh of relief now, the chances of your property purchase falling through are slim to none. You are now legally bound to purchase the property, as is the seller to sell.

It’s at this stage where you’ll pay your deposit (typically 10%) to the seller.

If either of you try to back out after this, it will be a breach of contract. The defaulting party would be at risk of either losing or returning the deposit.

Whether it’s taken you weeks, months, or years to get here, this is the day that you’ve been waiting for. It’s a day to cherish.

Completion day marks the finish line of your property purchasing journey. It’s the day when legal ownership officially transfers from the seller to the buyer, and you can move into your new home.

The sellers must be out by a set time on the day to facilitate your move-in time, which is usually around midday but can be whatever is agreed.

The money will be transferred to the seller’s conveyancer on the day, who will then tell the estate agent to release the keys, and that’s it, it’s time to get settled in.

Read our guide to completion day here.