First-Time Buyer Guide UK 2025/26
Buying your first home is one of the biggest financial decisions you will ever make. The process can feel overwhelming — estate agents, solicitors, surveyors, mortgage brokers — but once you break it down into clear steps, it becomes far more manageable. This guide walks you through everything from saving your first pound towards a deposit to picking up the keys on completion day.
Step 1 — Save Your Deposit
Before anything else, you need a deposit. The minimum most lenders will accept is 5% of the purchase price, but putting down more gives you access to better mortgage rates and lower monthly payments. Here is how the numbers look on a £250,000 property:
| Deposit % | Amount on £250K | Typical Rate Range |
|---|---|---|
| 5% | £12,500 | 5.0% – 5.8% |
| 10% | £25,000 | 4.5% – 5.2% |
| 15% | £37,500 | 4.0% – 4.8% |
The Lifetime ISA Bonus
If you are between 18 and 39, open a Lifetime ISA immediately. You can save up to £4,000 per tax year and the government adds a 25% bonus — that is a free £1,000 every year. Over four years, you could accumulate £20,000 including bonuses. The property must cost £450,000 or less to qualify, and you must have held the LISA for at least 12 months before using it. Start early — even if you are only saving £50 a month, the clock starts ticking from the day you open the account.
Step 2 — Get a Mortgage in Principle
A mortgage in principle (also called an agreement in principle or decision in principle) is a statement from a lender confirming how much they would be willing to lend you, based on an initial credit check and your income details. It usually lasts 60 to 90 days. Having one in hand shows estate agents and sellers that you are a serious buyer and can speed up the process significantly. Most banks and brokers can issue one within 24 hours.
Step 3 — Find Your Property
Start searching on portals like Rightmove, Zoopla, and of course UKHouses. Set up alerts for your target area and price range. Visit properties in person — photos can be deceiving. Check the local area at different times of day. Look at sold prices for comparable properties nearby so you know whether the asking price is fair. Do not rush. The right property at the wrong price is still the wrong deal.
Step 4 — Make an Offer
When you find the right property, make an offer through the estate agent. Your offer does not have to match the asking price. Look at recent sold prices for similar properties in the street or postcode. If the property has been on the market for a while, there may be room to negotiate. Always put your offer in writing and reference your mortgage in principle.
Step 5 — Arrange a Survey
Once your offer is accepted, instruct a surveyor. There are three main types: a basic valuation (often arranged by the lender), a HomeBuyer Report, and a full Building Survey. For most standard properties, a HomeBuyer Report is sufficient. For older or unusual properties, pay for the full survey. It could save you thousands by uncovering hidden problems like subsidence, damp, or structural issues.
Step 6 — Conveyancing
Your solicitor or licensed conveyancer handles the legal side. They carry out local authority searches, check the title deeds, raise enquiries with the seller's solicitor, and prepare the contract. This stage typically takes 8 to 12 weeks and is often the slowest part of the process. Chase regularly but politely — delays are normal but should not go unchallenged.
Step 7 — Exchange Contracts
Exchange is the point of no return. Both parties are now legally committed. You pay your deposit (usually 10% of the purchase price, minus anything already paid) and a completion date is set. Pulling out after exchange means losing your deposit and potentially facing legal action. Make sure your mortgage offer is confirmed and your buildings insurance is in place before you exchange.
Step 8 — Completion
On completion day, your solicitor transfers the remaining funds to the seller's solicitor. Once the money lands, the keys are released and the property is legally yours. Completion usually happens within 1 to 4 weeks of exchange. Congratulations — you are a homeowner.
Stamp Duty Relief for First-Time Buyers
As a first-time buyer in England and Northern Ireland, you pay no stamp duty on the first £425,000 of a property priced up to £625,000. Above £425,000 (up to £625,000), you pay 5%. If the property costs more than £625,000, you lose the relief entirely and pay standard rates. This can save you up to £8,750 compared to a non-first-time buyer purchasing at the same price. Scotland and Wales have their own schemes with different thresholds.
Hidden Costs You Must Budget For
The deposit and mortgage are not the only expenses. Budget for these costs on top of your purchase price:
| Cost | Typical Range | Notes |
|---|---|---|
| Survey | £300 – £700 | Full building survey can exceed £1,000 |
| Solicitor / Conveyancer | £1,000 – £1,500 | Including searches and disbursements |
| Mortgage arrangement fee | £0 – £2,000 | Can often be added to the loan |
| Moving costs | £500 – £1,000 | Removal van, storage, cleaning |
| Buildings insurance | £150 – £400/year | Required before exchange |
| Broker fee | £0 – £500 | Some brokers are fee-free |
In total, expect to set aside £3,000 to £5,000 on top of your deposit. Many first-time buyers underestimate these costs and end up scrambling at the last minute. Plan ahead, keep a separate savings pot, and you will sail through the process with far less stress.
The UK property market can feel intimidating, especially when you are navigating it for the first time. But thousands of people complete this journey every month. Take it one step at a time, lean on professionals where it matters, and do not be afraid to ask questions. Your future self will thank you.