How to buy your first home

How to buy your first home

1. Calculate your home-buying budget
2. Get a mortgage in principle
3. Start house hunting
4. Make an offer
5. Apply for a mortgage
6. Instruct your solicitor
7. Receive your mortgage offer
8. Arrange a property survey
9. Complete searches and investigations
10. Arrange home insurance
11. Transfer your deposit
12. Exchange contracts
13. Completion
14. Register the change of ownership
15. Arrange income protection or life insurance

We've detailed each of these steps below so you know what you need to do at each stage of buying your first home.

1. Calculate your home-buying budget

It might not be the most thrilling part of the journey, but understanding your buying budget is absolutely crucial before you start looking for your first home. The easiest way to do this is to use a mortgage calculator to see how much you could borrow based on your household income and deposit savings.

As a rough guide, most mortgage lenders will allow borrowers to obtain around 4 to 4.5 times household income, and first-time buyers typically need a minimum 5-10% house deposit.

But with property prices rising, you might not be able to borrow the amount needed to purchase using a standard mortgage. The good news is, there are ways to get a bigger mortgage or boost your deposit size. Working with a mortgage broker at this stage can be extremely helpful, especially if they are experts in affordability. They could help you work out how you could boost your buying budget to help you afford the home you want, or get on the ladder sooner.

Aside from working out how much can be borrowed, it's important to calculate the additional fees and costs associated with moving home.

Quick readiness check:

• Could you stay in this home for at least five years?
• Do you have an emergency fund covering three months of expenses?
• Is your income stable enough to keep repayments on track?

“If any answer is ‘no’, consider pausing until all boxes are ticked.”

We’ve summarised the key costs below that you should be prepared for:

Key costs when buying your first home

• Removals - You could rent a van and handle this yourself, but if a company is hired to help, costs typically range between £250 and £600.
• Stamp Duty Land Tax (SDLT) - First-time buyers do not need to pay any stamp duty on a residential property below £425,000. For any amount over £425,000 up to £925,000, first-time buyers will pay 5% in stamp duty land tax. This money will need to be paid within 14 days of completing on a property. Use our Stamp Duty Calculator to see what you could pay.
• House insurance - Lenders require that you have house insurance in place by the time that you exchange on your property. This is to protect your new home against fire, floods, subsidence and anything else that might come up. In addition, you should consider contents insurance for your possessions.
• Life insurance & income protection - First-time buyers are not obliged to get life insurance or income protection, but it's really important to consider it. Critical Illness covers you in the case you suffer from up to 80 serious illnesses, such as cancer or stroke. Income protection will help you if you’re unable to work due to sickness or unemployment, while life insurance could pay off your debt should you die before you’ve repaid the mortgage in full.

2. Get a mortgage in principle

Once first-time buyers have a clear idea of what you can afford, it’s time to get a Mortgage In Principle. This is a simple document from a mortgage advisor or lender which confirms the amount you can borrow based on the information you’ve provided to them. You can typically get one of these very quickly, and they will be valid for around 12 weeks. First-time buyers can get a free, downloadable Mortgage In Principle here.

The benefit of getting a mortgage in principle is that it shows sellers and estate agents that you’re a serious buyer, and that you have your ducks in a row! Some estate agents won’t let you view popular properties unless you can evidence that it’s within your means, so a Mortgage in Principle is the perfect document to hand over to land a viewing.

Know your rights: Under UK fair-housing rules, lenders and agents must treat all borrowers equally. If you feel pressured or discriminated against, contact the Financial Ombudsman or a housing adviser.

You might also like: Agreement in Principle, what can go wrong?

3. Start house hunting

Ah, the exciting bit - you can start booking in-house viewings and looking round properties! First-time buyers should introduce themselves to some estate agents in your chosen area, and then it’s time to head to viewings! When attending viewings, be sure to give yourself enough time; 20-30 minutes should be enough, so you can inspect the house inside and outside and ask any questions you might have. If there’s a place you’re keen on, then always try to visit twice before moving to the offer stage. You’ll spot things the second time round that you didn’t notice at first.

You should also get a feel for the areas you’re looking at by visiting the local pubs, restaurants and high streets.

Read more: What to look for when viewing a house, and Where should I buy a house?

4. Make an offer

So you’ve found your dream home. You’re armed with a Mortgage in Principle, so you know you can afford it. You’re picturing yourself on the sofa there already. You’re ready to put in an offer!

Use online sites like Rightmove and Zoopla to get a feel for property prices - these sites also offer price checkers to see what any property has sold for in the past.

It's wise to check what houses on the street have sold for recently so buyers know they're not offering above the odds.

When you’re ready, tell the estate agent, both on the phone and in writing, so there's no ambiguity or crossed wires. If you’re a first-time buyer or have no chain, be sure to emphasise this in your offer; this makes you incredibly attractive to sellers who want to avoid long chains and potential delays. You could also include a short bio about yourselves in your email; sharing who you are and what you like about the property can help to bring your offer to life.

Be prepared to negotiate with the estate agent, and be clear on what your max budget is based on your affordability and what other homes nearby have sold for.

Finally, when your offer has been accepted, you should ask the estate agent to take the property off the market as soon as possible. You want to avoid being gazumped, where another buyer comes in and offers above you at the last minute.

Get handy tips on how to negotiate house prices in our guide.

5. Apply for a mortgage

It’s time to contact the mortgage broker and let them know that an offer has been accepted! They will use the information previously provided and submit an application to a lender for you. If your circumstances have changed at all, such as receiving a pay rise or a partner defaulting on a credit card payment, this is the time to tell them. The lender will do a full check of your credit history, outgoings and income, and will pick up on any differences.

The application itself is usually very quick, as your mortgage broker should have collected all of the information they need earlier in the mortgage process. However, you’ll likely need to send up-to-date bank statements and payslips, particularly if a few months have passed.

6. Instruct your solicitor

Unless buyers already know a conveyancer or solicitor they want to use, the first step is to find a suitable company or individual.

The estate agent and mortgage broker will be able to recommend a solicitor, but you should always compare a few quotes to ensure you're getting a fair price.

Once you’ve appointed a solicitor, they will send you a contract, setting out their charges. The solicitor will then send it to the seller’s solicitor to introduce themselves and confirm they are acting for you. At this point, they will usually receive the property’s title and a draft contract.

7. Receive a mortgage offer

It usually takes between four and six weeks to receive a formal mortgage offer from your lender, but this can vary depending on how quickly you are able to respond to any queries and how busy the lender is. During this time, the lender will arrange for a surveyor to value the property and confirm the price you're paying reflects current market values.

8. Arrange a property survey

As a first-time buyer, getting a survey is the best way to check that the property you're buying is structurally sound.

While there are different types of surveys, they all involve an expert inspection of the property's condition, focusing on anything that could cause problems down the line.

• Roof and structure: checks the roof, walls, and foundations for issues like movement, damp, or subsidence.
• Electrics and plumbing: flags visible signs of problems that could mean further checks or upgrades are needed.
• Energy efficiency: looks at insulation, glazing, and other factors that affect running costs and the EPC rating.
• Pests and timber: identifies risks such as woodworm or rot that can lead to expensive repairs.

Most buyers choose a HomeBuyer Report for more standard properties, while a Building Survey is often better for older homes, larger properties, or homes that have been heavily altered.

A professional surveyor will conduct the survey, and their findings will help you decide whether to proceed with the purchase or negotiate on price.

It’s important to note that a survey isn’t a legal requirement. But if you do decide to go ahead with one, which is strongly recommended, you should check that the surveyor used is a member of one of the two main accrediting bodies: RICS - Royal Institution of Chartered Surveyors or RPSA - Residential Property Surveyors Association.

If the survey reveals any issues, you can renegotiate the price; this is completely normal. Until you exchange contracts, your offer remains Subject to Contract (STC), which means you can still change your mind.

Your solicitor can share the survey results with the seller, along with estimated repair costs from a tradesman or surveyor.

9. Complete searches and investigations

At this stage, your solicitor will carry out searches and investigations, starting with the title at the Land Registry. These documents show the property boundaries, any restrictions, access rights, and other important legal details.

The residential searches can take longer and typically include local authority, water and drainage, environmental, planning, and flooding searches.

Most of these searches are done electronically and come back quickly, but local authority searches can take anywhere from 3 days to 8 weeks, depending on how busy the council is.

Your solicitor will also raise enquiries with the seller's solicitors, essentially asking questions that the seller is legally required to answer fully and honestly.

There may be some back and forth at this stage, with all communications handled between the solicitors. This is your opportunity to ask any questions about the property, your new neighbours, or anything that's come up in the searches, so don't hesitate to raise any concerns.

10. Arrange home insurance

It’s time for you to start speaking to some insurance providers about your house insurance. If you have a mortgage, the lender will specify that you have to have insurance from the moment you exchange, so it’s good to give yourself a bit of time to shop around beforehand. This home cover gives you vital protection if the worst should happen; think flooding, fires, natural disasters. It’s a non-negotiable!

11. Transfer your deposit

This bit is slightly scary, but it is essential! The time has come to send over your house deposit to your solicitors. They’ll hold it securely until you complete.

12. Exchange contracts

The exchange of contracts is the point of no return! For it to happen, a few very important things will need to have happened:

• Both you and the seller have signed the contract
• A completion date has been agreed
• Your deposit has been transferred to your solicitor
• You and the seller have given solicitors final authority to exchange

Once that’s happened, your solicitors will exchange contracts and do the necessary work in the background to ensure the finances are ready to go to the seller’s solicitors. This includes requesting the money from the lender, and pulling a final balance of monies from you, including stamp duty and legal fees. Note that some solicitors will ask that you transfer those additional fees at the same time you send your deposit.

You might also like: What is a mortgage deed?

13. Completion

The hard bits are out of the way now, and this part is surprisingly simple. Your solicitor will send your deposit and the money from the lender to the seller’s solicitors by bank transfer. Once the seller’s solicitor has received the money, they’ll call your solicitors to confirm (yep - their people call your people), and give the go-ahead for the estate agent (or seller) to hand the keys over to you!

Then it’s time to get the moving van packed up. The property is yours!

14. Register the change of ownership

The last few bits - we promise, you’re nearly there. Your solicitor will register the transfer of the property at Land Registry. This can take a few months to come through, but when it does complete, you’ll receive a copy from your solicitors.

15. Arrange income protection or life insurance

If you haven’t already considered it, now is the perfect time for you to speak with your mortgage advisor or do some research into mortgage protection and life insurance. Nobody likes to think about the worst happening, but it pays to be prepared.

Income protection comes in a variety of forms, but in short, it will cover some or all of your repayments in the event that you are unable to work. Life insurance does what it says on the tin. In the scenario that you died, the insurance policy would pay out a lump sum in cash. If you were still paying off the mortgage, the key benefit is that if you had bought with a partner, they could pay off some or all of the remaining debt. This also applies if you are using an Income Boost mortgage and the buyer or Booster passes.

These aren’t the easiest things to think about, but advisors are trained to help you think about it pragmatically, so you can rest easy in the years to come.

And that’s that! Now it’s time to enjoy your home for years to come.