First-Time Buyer Guide: How to Buy Your First Home in the UK

Last updated: May 2026 · 8 min read

Buying your first home is one of the biggest financial decisions you will ever make. The UK property market can feel overwhelming, but with the right preparation, the process is manageable. This guide walks you through every stage from saving a deposit to collecting the keys.

How Much Deposit Do You Need?

Most lenders require a minimum deposit of 5% of the property price, though 10-15% will unlock significantly better mortgage rates. On a property costing 250,000 pounds, that means saving between 12,500 and 37,500 pounds. The larger your deposit, the lower your monthly repayments and the less interest you pay over the mortgage term.

A Lifetime ISA (LISA) lets you save up to 4,000 pounds per year and the government adds a 25% bonus (up to 1,000 pounds per year). You must be aged 18-39 to open one, and the property must cost 450,000 pounds or less. This is essentially free money toward your deposit.

Getting a Mortgage Agreement in Principle

Before you start viewing properties, get a mortgage agreement in principle (AIP) from a lender. This confirms how much they are willing to lend you based on your income, outgoings and credit history. Most AIPs last 60-90 days and involve a soft credit check that will not affect your score.

Lenders typically offer 4-4.5 times your annual salary. If you earn 35,000 pounds, expect to borrow around 140,000 to 157,500 pounds. With a 25,000 pound deposit, your budget would be 165,000 to 182,500 pounds. Use a mortgage calculator on CalcPad to model different scenarios.

Stamp Duty for First-Time Buyers

First-time buyers in England and Northern Ireland pay no stamp duty on the first 300,000 pounds of a property priced up to 500,000 pounds. Above 300,000 pounds (up to 500,000 pounds), you pay 5%. If the property costs more than 500,000 pounds, standard rates apply. Use the stamp duty calculator to check your exact liability.

Choosing a Solicitor or Conveyancer

You will need a solicitor or licensed conveyancer to handle the legal side of the purchase. They conduct local authority searches, check the title deeds, raise enquiries with the seller's solicitor and handle the transfer of funds. Expect to pay 1,000 to 2,000 pounds including searches and disbursements. Get quotes from at least three firms and check their reviews.

Making an Offer and What Happens Next

Once you find a property, make your offer through the estate agent. Your offer is not legally binding until contracts are exchanged, which typically happens 8-12 weeks after the offer is accepted. During this period, your solicitor conducts searches, you arrange a survey, and the mortgage lender conducts their valuation.

Exchange of contracts is the point of no return — both parties are legally committed. Completion (when you get the keys) usually follows 1-2 weeks later, though it can happen on the same day. Budget for moving costs, furniture and any immediate repairs the property needs.

First-Time Buyer Schemes

Several government schemes exist to help first-time buyers. Shared Ownership lets you buy a share (25-75%) and pay rent on the rest. First Homes offers new-build properties at a 30-50% discount. The mortgage guarantee scheme encourages lenders to offer 95% LTV mortgages. Check your eligibility for each — they can make a substantial difference to what you can afford.