Buying a home for the first time in the UK

Step 1: Work out your budget

Start by asking, how much deposit do first-time buyers need? Most lenders ask for at least 5% of the property price, but a bigger deposit can mean better mortgage deals.

• Wondering how much can a first-time buyer borrow? Use our calculator to get a rough idea based on your income.

• Look into government help for first-time buyers, like Lifetime ISAs or First Homes scheme.

• You might also want to consider shared ownership or shared equity schemes. All of these can make buying more affordable.

When booking an appointment through us, a local mortgage broker will be able to guide you through this whole process to make sure you’re on the right track to successfully buying your first home.

Step 2: Get mortgage advice

Speak to one of our mortgage brokers for tailored mortgage advice. Not only will they help you find a great first-time buyer mortgage deal, they may even have access to exclusive deals that aren’t on the open market.

They will also cut through the mortgage jargon and explain everything in plain English, so that your mortgage application is as smooth as possible.

Your local broker will help you get a mortgage decision/agreement in principle. While this agreement doesn’t guarantee you’ll get a mortgage for that amount, it does show you how much a lender might be willing to lend, so you can look at homes in that price range. It also shows sellers that you are serious about buying and know your budget.

Step 3: Start your property search

Now let’s get to the really fun part: your property search! Make a list of what matters most to you, for example, location, size, transport links, and local amenities.

When viewing homes, keep a list of questions to ask when buying your first home. You might want to find out details like what’s included in the sale, how old the boiler is, or what the neighbours are like.

Keep your mortgage broker in the loop at this point so that they can support you when you’ve found the one.

How this varies in Scotland:

In Scotland, this is also when you’d instruct a conveyancer, also known as a property lawyer. Your conveyancer will handle the legal side - this is called conveyancing - and make sure that your interests are protected throughout your buying process.

They will check the property’s legal status, handle contracts, and make sure everything is above board.

Step 4: Make an offer

Found the one? Make an offer through the estate agent. Don’t be afraid to negotiate.

Once your offer is accepted, things start moving quickly.

How this varies in Scotland:

There can be three different types of ways that a seller might advertise their property in Scotland:

• Offers over... is when the seller expects to sell their property for more than a certain amount.

• Fixed price... is when the seller expects to sell for that price. You can still offer lower or above the advertised price, just don’t be surprised if the seller doesn’t accept a lower offer.

• Offers in the region of... is when the seller expects to sell their property at a certain price or around that price. Sellers would typically expect higher offers, however they are open to negotiation on a slightly lower offer.

In Scotland, most properties set a minimum asking price (this is known as an offers over price). there is also a closing date for submitting your offer, so it's similar to a bidding system. So when making an offer, make sure that any offer you make is affordable to you and your circumstances, and that it’s in on time.

You can discuss how much you want to offer with your estate agent, but remember that your offer can only be submitted by your conveyancer.

Step 5: Instruct a conveyancer/property lawyer

You will need a property lawyer or licensed conveyancer to handle the legal side - this is called conveyancing.

They will check the property’s legal status, handle contracts, and make sure everything is above board.

Step 6: Arrange your mortgage

Once your offer has been accepted, your mortgage broker will help to finalise your first-time buyer mortgage application.

The lender will then arrange a mortgage valuation which is for their use and benefit (although you will receive a copy), whereby they can confirm the property is suitable security for the loan they will be providing. This therefore doesn’t check the property’s condition (see Step 7 for details on arranging your own survey).

Step 7: Consider a survey

For you to be sure you know exactly what you’re buying, we always recommend for buyers like you to have your own survey done. This means that you’ll hire a surveyor to check over the property from top to bottom.

By doing this, you’ll get a better idea of the property’s condition and, if you were planning on making some changes, e.g. building an extension, whether they’re even possible.

Getting your own survey done may even give you some bargaining power in terms of the property price if the surveyor discovers any issues that you may have to have resolved before your purchase.

Step 8: Receiving your mortgage offer, exchanging and completion

Once the lender has approved your mortgage application, you will receive your mortgage offer, which your mortgage broker will guide you through and ensure that everything is correct, and you understand it all too.

Once all checks are done, you will exchange contracts - this is when you commit to buying the property and pay your deposit. At this point, the sale becomes legally binding in England and Wales.

On completion day, your mortgage starts, get your keys, and you can move in.

How this varies in Scotland:

Concluding missives and completion

At this point, you will receive your mortgage offer, which your mortgage broker will guide you through and ensure that everything is correct, and you understand it all too.

Now that all the checks are done and all the details are agreed, you will move to the next step called ‘concluding missives’. This is where your conveyancer and the seller’s conveyancer exchange letters to formalise the contract.

This is when the sale becomes legally binding, and after your offer is accepted, your mortgage starts.

Step 9: Stamp duty relief

Stamp duty is a tax on property purchases in England and Northern Ireland.

As a first-time buyer, you may qualify for stamp duty relief. In England this means that you don’t pay stamp duty on properties up to £300,000. Other rules and rates apply – for example, the type of buyer you are, number of owned properties and the location. Your conveyancer will be able to advise based on your circumstances.

Scotland and Wales have different systems:

• Wales doesn’t offer first-time buyers relief on their version of stamp duty which is called Land Transaction Tax (LTT) . This is subject to when you bought the property, whether it’s residential or not and how much you paid for it .

In Scotland, instead of Stamp Duty, you pay Land and Buildings Transaction Tax (LBTT). As a first-time buyer, you may qualify for first-time buyers relief, meaning that you may not pay LBTT on properties up to £175,000 if this is your first home.

Step 10: Move in and celebrate!

Unpack, settle in, and enjoy your new home. You did it!

First-time buyer FAQs

Here’s a quick rundown of some questions you might have as a first-time buyer:

• How much deposit do first-time buyers need? Usually at least 5% of the property price.

• How much can a first-time buyer borrow? This depends on things like your income and outgoings - use a mortgage calculator for a quick estimate or talk to us, and we’ll put you in touch with one of our brokers to help you make sense of it all.

• What is the difference between leasehold vs freehold? Freehold means you own the property and land. Leasehold means you own the property for a set time, but not the land.

• What government help for first-time buyers is available? Look into Lifetime ISAs, shared ownership, and Freedom to buy schemes.

Remember, buying a house for the first time is a big step, and with the right support and advice, it can be a smooth and enjoyable experience.

Take it one step at a time, ask lots of questions, and do not be afraid to lean on professionals for help. You’ve got this!

Ready to book your first free mortgage appointment?

Yes? Let’s get the ball rolling!