Step-by-Step Buying Process
Buying your first home can feel overwhelming, but the process follows a well-defined sequence of steps. Understanding what happens at each stage — and what is expected of you — will help you navigate it with confidence.
- Save your deposit: Aim for at least 5–10% of the target property price. Use a Lifetime ISA (LISA) for a 25% government bonus on savings up to £4,000 per year. Use our Deposit Savings Calculator to set a realistic timeline.
- Check your credit score: Review your credit report with all three main agencies (Experian, Equifax, TransUnion). Correct any errors and address any issues like missed payments, high utilisation or being off the electoral roll.
- Get a Mortgage in Principle (MIP): Before viewing properties seriously, get a Decision in Principle from a lender or broker. This shows estate agents you are a credible buyer and gives you a budget to work within.
- Find a property: Search Rightmove, Zoopla and OnTheMarket. Register with local estate agents. Attend viewings and ask detailed questions about the property's condition, tenure (freehold/leasehold), service charges and the seller's situation.
- Make an offer: Offers are typically made via the estate agent. In England and Wales, no offer is legally binding at this stage. In Scotland, the system differs — offers are made through solicitors and accepted offers form a binding missive.
- Instruct a solicitor/conveyancer: As soon as your offer is accepted, appoint a licensed conveyancer or solicitor to handle the legal work. They conduct searches, review the contract and liaise with the seller's solicitor.
- Apply for your mortgage: Submit your full mortgage application with payslips, P60, bank statements and ID. The lender will conduct an affordability assessment and instruct a valuation of the property.
- Commission a survey: Beyond the lender's valuation, consider commissioning your own independent survey (HomeBuyer Report or Full Structural Survey) to reveal any defects before you are committed.
- Exchange of contracts: Your solicitor confirms all searches are complete, the mortgage offer is received and both parties are ready. You pay your deposit (typically 10%) and contracts are exchanged — legally committing both sides.
- Completion: On the agreed completion date, your mortgage funds are transferred to the seller's solicitor. Once received, you can collect your keys. You are now a homeowner.
Deposit Requirements
The deposit you save has a direct impact on the mortgage rates available to you and your monthly payments. While 5% is the legal minimum to obtain a mortgage, saving more delivers significant benefits.
| Deposit % | LTV | On £250,000 Property | Typical Rate (2026) | Monthly Payment* |
|---|---|---|---|---|
| 5% | 95% | £12,500 | ~5.6% | ~£1,450 |
| 10% | 90% | £25,000 | ~5.1% | ~£1,330 |
| 15% | 85% | £37,500 | ~4.8% | ~£1,250 |
| 20% | 80% | £50,000 | ~4.6% | ~£1,200 |
| 25% | 75% | £62,500 | ~4.4% | ~£1,160 |
*Illustrative repayment figures on a 25-year mortgage. Actual rates and payments vary by lender and individual circumstances.
Lifetime ISA (LISA) — Your Best Friend
If you are under 40, the Lifetime ISA is the single most powerful tool for building a first home deposit. You can save up to £4,000 per tax year, and the government adds a 25% bonus — up to £1,000 per year — at the end of the tax year. Funds must be used for a first home purchase (property up to £450,000) or retirement. The account must be open for at least 12 months before you use it.
Government Schemes 2026
The UK government runs several schemes to help first-time buyers get onto the property ladder with smaller deposits or lower purchase prices.
Shared Ownership
Shared Ownership allows you to buy a share of a property — typically between 10% and 75% — from a housing association, and pay a subsidised rent on the remaining portion. Your mortgage is only on your share, so your deposit requirement is much smaller. You can increase your share over time in a process called "staircasing" until you own 100% of the property.
- Available on new-build homes and some resale properties through housing associations
- Maximum household income of £80,000 (£90,000 in London) to qualify
- Buyer is responsible for repairs and maintenance even on the rented portion
- Service charges and ground rent apply if leasehold
First Homes Scheme
The First Homes scheme offers new-build homes to first-time buyers at a discount of at least 30% (sometimes 40–50%) below market value. The discount is locked in permanently and passes to any future buyer, keeping the property affordable for future first-time buyers. Eligibility requirements include:
- First-time buyer in England (different schemes exist in Wales, Scotland and Northern Ireland)
- Household income below £80,000 (£90,000 in London)
- Must use a mortgage for at least 50% of the discounted price
- Local authorities may prioritise key workers or local residents
Mortgage Guarantee Scheme
The UK government's Mortgage Guarantee Scheme encourages lenders to offer 95% LTV mortgages by providing a government guarantee on the riskier portion of the loan. This makes 5% deposit mortgages more widely available from high-street lenders including Barclays, HSBC, Lloyds, NatWest and Santander. The scheme has been extended and continues in 2026.
Help to Buy (Closed)
The Help to Buy Equity Loan scheme closed to new applicants in March 2023 and is no longer available. If you took out a Help to Buy loan, note that interest charges apply from year 6 onwards, increasing each year — plan your repayment strategy accordingly.
Stamp Duty for First-Time Buyers 2026
Stamp Duty Land Tax (SDLT) is a tax payable in England and Northern Ireland when you buy a property above certain thresholds. First-time buyers receive a significant discount — but the thresholds changed from April 2025.
| Property Portion | First-Time Buyer Rate (from April 2025) | Standard Rate |
|---|---|---|
| Up to £300,000 | 0% | 0% |
| £300,001 – £500,000 | 5% | 5% |
| £500,001 – £925,000 | Standard rates apply* | 5% |
| £925,001 – £1,500,000 | Standard rates apply* | 10% |
| Above £1,500,000 | Standard rates apply* | 12% |
*If the property costs more than £500,000, first-time buyer relief is not available and standard rates apply in full.
SDLT Examples for First-Time Buyers in 2026
| Property Price | SDLT Before April 2025 | SDLT From April 2025 |
|---|---|---|
| £200,000 | £0 | £0 |
| £300,000 | £0 | £0 |
| £350,000 | £0 | £2,500 |
| £450,000 | £1,250 | £7,500 |
| £500,000 | £3,750 | £10,000 |
Mortgage Eligibility
UK mortgage lenders assess your application across several criteria. Understanding what lenders look for helps you prepare a strong application and avoid common pitfalls.
Income Multiples
Most lenders cap mortgage lending at 4.5 times your annual gross income (or joint income for two applicants). Some lenders, particularly for higher earners or certain professions, will lend up to 5x or even 5.5x income. The Financial Policy Committee (FPC) limits the proportion of new mortgages lenders can write above 4.5x income.
| Annual Income | Max Mortgage at 4.5x | Max Mortgage at 5x |
|---|---|---|
| £30,000 | £135,000 | £150,000 |
| £40,000 | £180,000 | £200,000 |
| £50,000 | £225,000 | £250,000 |
| £60,000 + £40,000 | £450,000 | £500,000 |
Affordability Assessment
Beyond the income multiple, lenders conduct a detailed affordability assessment that considers your monthly outgoings: loans, credit cards, car finance, childcare, travel costs, subscriptions and general living expenses. Lenders also stress-test your mortgage against higher interest rates to ensure you could still afford payments if rates rise.
Credit Score and History
While there is no universal minimum credit score, a strong credit file is essential. Key factors include: payment history (no missed or late payments), credit utilisation (ideally below 30% of available credit limits), length of credit history, types of credit, recent applications and whether you appear on the electoral roll.
Buying Costs Explained
Beyond the deposit and stamp duty, first-time buyers face a range of additional costs that must be budgeted for carefully. Allow at least £3,000–£6,000 for buying costs on top of your deposit.
| Cost | Typical Amount | Notes |
|---|---|---|
| Mortgage arrangement fee | £0 – £2,000 | Can be added to mortgage but increases total interest paid |
| Mortgage valuation | £0 – £700 | Often included free by lender |
| RICS HomeBuyer Report | £400 – £1,000 | Strongly recommended for older properties |
| Full Structural Survey | £600 – £1,500 | For older or unusual properties |
| Solicitor / Conveyancer | £1,000 – £2,500 | Includes searches, Land Registry fees and legal work |
| Stamp Duty (SDLT) | £0 – £10,000+ | Depends on property price and FTB relief |
| Mortgage broker fee | £0 – £500 | Many fee-free brokers available |
| Buildings insurance | £150 – £400/yr | Required by mortgage lender from exchange of contracts |
| Removal costs | £300 – £1,500 | Depends on distance and volume |
Survey Types Explained
Mortgage Valuation: Confirms the property is worth the purchase price for the lender's security. Does not assess property condition. Not a survey.
RICS HomeBuyer Report (Level 2): A traffic-light report on condition, highlighting urgent repairs and potential issues. Suitable for most modern homes in reasonable condition.
RICS Building Survey (Level 3): A thorough structural survey covering all visible and accessible parts of the property. Essential for older, listed or non-standard construction homes.
Exchange vs Completion
Two key legal milestones mark the final stages of buying a home in England and Wales: exchange of contracts and completion. Understanding the difference — and what happens at each — is essential for a smooth purchase.
Exchange of Contracts
Exchange is the point at which the transaction becomes legally binding. Both the buyer and seller sign identical contracts, and your solicitor physically (or electronically) exchanges these with the seller's solicitor. At this point you pay your deposit — typically 10% of the purchase price — to your solicitor, who holds it until completion. If you pull out after exchange without a legally valid reason, you forfeit your deposit. If the seller pulls out after exchange, they may be liable for your legal and survey costs.
Completion
Completion occurs on the agreed date (typically 1–4 weeks after exchange). Your mortgage lender releases the funds, your solicitor transfers the full purchase price to the seller's solicitor, and once receipt is confirmed, the estate agent releases the keys. You are now the legal owner of the property. Your solicitor then registers your ownership with HM Land Registry.
First-Time Buyer Checklist
Use this checklist to track your progress through every stage of buying your first home:
- Open a Lifetime ISA and begin saving for your deposit
- Check your credit report and correct any errors
- Register on the electoral roll at your current address
- Calculate how much you can borrow using our Mortgage Calculator
- Get a Mortgage in Principle from a lender or broker
- Calculate your budget including all buying costs (not just deposit and SDLT)
- Research areas and property types that suit your lifestyle and budget
- Register with local estate agents and property portals
- View multiple properties before making an offer
- Have an offer accepted and confirm it in writing via the estate agent
- Instruct a solicitor/conveyancer immediately upon offer acceptance
- Submit your full mortgage application with all supporting documents
- Book an independent survey (Level 2 or Level 3 RICS survey)
- Review solicitor search results and raise any queries
- Arrange buildings insurance to begin from exchange of contracts
- Transfer deposit funds to your solicitor ahead of exchange
- Exchange contracts — you are now legally committed
- Arrange removal company and notify utility providers
- Complete — collect keys and move in
- Register change of address with HMRC, DVLA, bank and employer
Frequently Asked Questions
How much deposit do I need as a first-time buyer in the UK?
The minimum deposit for a UK mortgage is typically 5% of the property purchase price, available through 95% LTV mortgage products supported by the Mortgage Guarantee Scheme. However, a 10% deposit gives access to significantly better rates and lower monthly payments. A 20%+ deposit unlocks the most competitive deals on the market. On a £250,000 property, a 5% deposit is £12,500, a 10% deposit is £25,000 and a 20% deposit is £50,000.
Do first-time buyers pay stamp duty in 2026?
From April 2025, first-time buyers pay no stamp duty (SDLT) on the first £300,000 of a property purchase. On the portion between £300,001 and £500,000, a 5% rate applies. If the property costs more than £500,000, first-time buyer relief is not available and standard SDLT rates apply on the full purchase price. Use our Stamp Duty Calculator for an exact figure on any purchase price.
What is the Shared Ownership scheme and who qualifies?
Shared Ownership lets you buy a share (between 10% and 75%) of a property from a housing association and pay below-market rent on the remainder. Your mortgage covers only your share, reducing the deposit needed. Eligibility: you must be a first-time buyer (or previously owned a home but cannot currently afford one), have a household income below £80,000 (£90,000 in London), and be unable to afford the full market value of a home that meets your needs. You can buy additional shares over time through staircasing.
How long does it take to buy a house as a first-time buyer?
From having an offer accepted to completion typically takes 8–12 weeks in England and Wales, assuming no chain complications. The process can be faster (4–6 weeks) if both parties are motivated, surveys are clean and mortgage applications are straightforward. It can take much longer — 16+ weeks — if there are issues with surveys, mortgage underwriting, searches or if you are part of a long chain. Scotland operates a different system (solicitor-led offers and missives) which can be quicker once an offer is formally accepted.
What credit score do I need for a first-time buyer mortgage?
There is no single minimum credit score for a UK mortgage, as each lender uses their own proprietary scoring model. Generally, you need a history of paying bills and credit on time, no County Court Judgements (CCJs), no Individual Voluntary Arrangements (IVAs) or bankruptcies in recent years, low credit card utilisation and registration on the electoral roll. Check your credit report with Experian, Equifax and TransUnion at least 3–6 months before applying and correct any errors.
What is the difference between exchange and completion?
Exchange of contracts is the legally binding moment when both buyer and seller commit to the transaction. The buyer pays their deposit (typically 10%) to their solicitor. From this point, neither party can withdraw without serious financial penalties. Completion is when the purchase price is transferred between solicitors and the buyer receives the keys. There is typically a 1–4 week gap between exchange and completion, which gives both parties time to arrange moving. In some cases, exchange and completion happen on the same day ("simultaneous exchange and completion").
Should I use a mortgage broker or go direct to a lender?
A whole-of-market mortgage broker can access thousands of deals including exclusive products not available directly from lenders, and many charge no fee to the borrower (paid by the lender instead). For first-time buyers navigating the process for the first time, the expert guidance and administrative support a broker provides is particularly valuable. Going direct to a lender is quicker if you already know exactly which product you want and have a straightforward application. For most first-time buyers, a broker offers better outcomes.