First-Time Buyer Guide: Everything You Need to Know in the UK

Buying your first home in the UK is exciting, daunting, and expensive — often all at once. This guide walks you through the entire process from saving a deposit to getting the keys, with the real costs and timelines at each stage.

Step 1: Save Your Deposit

The deposit is the biggest hurdle for most first-time buyers. You need at least 5% of the purchase price, but 10-15% gets you significantly better mortgage rates, and 20%+ unlocks the best deals. On a £250,000 property, a 5% deposit is £12,500; a 15% deposit is £37,500; a 20% deposit is £50,000. The bigger your deposit, the lower your loan-to-value (LTV) ratio, and the lower your interest rate.

Consider using a Lifetime ISA (LISA) to save: you can contribute up to £4,000 per year and the government adds a 25% bonus, so £4,000 becomes £5,000. Over 5 years of maxing out a LISA, you'd contribute £20,000 and receive £5,000 in government bonuses — plus any investment growth. The LISA can only be used for a first home (up to £450,000) or retirement (age 60+).

Step 2: Check Your Credit Score

Your credit score determines whether you'll be approved for a mortgage and what rate you'll pay. Before applying, check your credit file with all three UK credit reference agencies: Experian, Equifax, and TransUnion. You're entitled to a free statutory report from each. Look for errors, outdated information, or accounts you don't recognise — dispute anything that's wrong.

To improve your score: pay every bill on time, keep credit card balances under 30% of the limit, don't apply for new credit in the 6 months before your mortgage application, and make sure you're on the electoral roll. A score of 700+ (Experian) or equivalent should get you approved at competitive rates.

Step 3: 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 saying how much they'd be willing to lend you, subject to a full application and valuation. It's not a binding offer, but it shows sellers and estate agents you're a serious buyer. Most AIPs are valid for 60-90 days.

You can get an AIP directly from a lender or through a mortgage broker. A whole-of-market broker (like London & Country or Habito) can access every lender and find the best deal for your situation — and their service is usually free (they're paid by the lender). Get your AIP before you start viewing properties so you know your budget.

Step 4: Find a Property and Make an Offer

Once you know your budget, start viewing properties. When you find one you want, make an offer through the estate agent. The offer is subject to contract and survey, meaning you can pull out (or renegotiate) if the survey reveals problems. Don't skip the survey — a Homebuyer's Report (£400-£700) or a Building Survey (£600-£1,500) can reveal issues that cost tens of thousands to fix.

Step 5: Conveyancing and Exchange

Conveyancing is the legal process of transferring the property from the seller to you. You'll need a conveyancer or solicitor (£800-£1,500 including disbursements). They'll handle the searches (local authority, environmental, water/drainage), check the title, and manage the transfer. The process takes 8-12 weeks on average.

Once everything is checked and the mortgage offer is issued, you exchange contracts. At this point, the sale is legally binding — if you pull out after exchange, you lose your deposit (usually 10%). Completion (when you get the keys) typically happens 7-28 days after exchange.

The Full Cost Breakdown

On a £250,000 property with a 15% deposit, expect to pay: Deposit £37,500; Stamp Duty £0 (first-time buyer relief up to £300k); Mortgage product fee £0-£999; Conveyancing £1,000-£1,500; Survey £400-£700; Moving costs £300-£800; Initial furnishing £1,000-£3,000. Total cash needed upfront: approximately £40,000-£44,000. Use our Stamp Duty Calculator to get the exact SDLT for your purchase price.