The First-Time Buyer's Complete Guide.

Every step from saving your deposit to collecting your keys — explained clearly.

Buying your first home is one of the most significant financial decisions you will ever make. The process can feel daunting, but it follows a clear sequence of steps — and understanding each one in advance removes much of the anxiety. This guide walks you through the entire journey, from the very first savings conversation to the moment you collect your keys.

First-Time Buyer Guide

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1

How much can you borrow?

Lenders assess affordability using your gross income, existing credit commitments, and monthly outgoings. Most high-street lenders apply an income multiple of around 4 to 4.5 times your annual salary, though some specialist lenders will stretch to 5.5 times in the right circumstances — typically for professionals with strong earnings trajectories.

Running an affordability assessment early (before you start viewing properties) gives you a realistic budget and means you can move quickly when you find the right home. Our free affordability calculator on this page gives you an instant estimate.

2

Saving your deposit

The minimum deposit required by most lenders is 5% of the purchase price. However, a 10% or 15% deposit unlocks significantly better interest rates and a wider choice of lenders — the reduction in monthly repayments often outweighs the delay caused by saving more.

If you have not already opened a Lifetime ISA (LISA), it is worth doing so. You can contribute up to £4,000 per year and receive a 25% government bonus — up to £1,000 per year — on savings used towards a first property purchase (subject to eligibility conditions and the property being under £450,000).

Help to Buy equity loan schemes have now closed, but Shared Ownership remains available, allowing you to purchase a share (typically 25–75%) of a property and pay rent on the remainder, with the option to staircase up over time.

3

Agreement in Principle

Before you begin viewing properties seriously, obtain an Agreement in Principle (AIP) from a lender or through your broker. This is a conditional statement that the lender would be willing to lend you a specified amount, subject to full underwriting. Estate agents will often ask for one before accepting an offer.

An AIP involves a soft credit search in most cases, which does not affect your credit score. A full mortgage application triggers a hard search, so try not to apply to multiple lenders individually — a broker can identify the right lender before a hard search is run.

4

The conveyancing process

Once your offer is accepted, you appoint a solicitor or licensed conveyancer to handle the legal transfer of ownership. Your solicitor will carry out searches (local authority, drainage, environmental), review the title deeds, and raise enquiries with the seller's solicitor.

The process from offer acceptance to exchange typically takes 8–12 weeks, though complex chains or leasehold properties can extend this. Exchange of contracts is the point at which the transaction becomes legally binding — until then, either party can withdraw. Completion usually follows 1–4 weeks after exchange.

5

Stamp Duty Land Tax for first-time buyers

First-time buyers benefit from Stamp Duty Land Tax (SDLT) relief in England. From April 2025, the standard nil-rate threshold is £125,000, but first-time buyers pay no SDLT on the first £300,000 of a property costing up to £500,000 — above that price, the standard rates apply in full.

Use our Stamp Duty calculator on this page to see your exact liability before you make an offer. This can affect how much cash you need to complete alongside your deposit, solicitor fees, and survey costs.

6

Protecting your mortgage

Lenders do not require you to take out life insurance, but most financial advisers recommend it. If you die before the mortgage is repaid, the outstanding balance falls to your estate — or your co-buyer. A decreasing term life assurance policy, which reduces in line with your outstanding mortgage, is typically the most cost-effective option for this purpose.

Critical illness cover and income protection are worth considering separately. Your adviser can review your employer’s sick-pay arrangements and help you assess what cover — if any — makes sense for your circumstances.

What to remember from this guide.

Get an Agreement in Principle before you start seriously viewing property
A 10–15% deposit unlocks meaningfully better rates than the 5% minimum
Factor in solicitor fees, survey costs, and SDLT before committing to a budget
A Lifetime ISA adds up to £1,000 per year in government bonuses towards your first home
Exchange of contracts — not completion — is when the sale becomes legally binding