Buying your first home is a big step, and the process can seem daunting. Breaking it into stages makes it manageable. This guide covers what to prepare, what it costs and how the process typically unfolds in England and Wales; Scotland has a different legal process.
1. Saving a deposit
Most lenders require at least 5% of the purchase price, though larger deposits usually unlock lower rates. Eligible first-time buyers aged 18 to 39 can open a Lifetime ISA and receive a 25% government bonus on up to £4,000 of savings a year, which can be used towards a first home worth up to £450,000 (GOV.UK Lifetime ISA). Withdrawing for other purposes usually triggers a charge.
2. Check affordability
Use our Mortgage Calculator to understand repayments, then get an agreement in principle from a lender or broker. It shows estate agents you are a serious buyer and tells you roughly how much you can borrow.
3. Budget for the costs of buying
- Stamp Duty Land Tax in England and Northern Ireland (with first-time buyer relief on some purchases), Land Transaction Tax in Wales and LBTT in Scotland – check the current thresholds on GOV.UK.
- Legal (conveyancing) fees and searches.
- Survey – a basic valuation protects the lender; a fuller survey protects you.
- Mortgage fees – product, arrangement and valuation fees.
- Moving costs and initial furnishing.
4. Make an offer
When your offer is accepted, instruct a conveyancer and submit your full mortgage application. The lender will value the property and carry out a full credit check.
5. Exchange and completion
Once searches, surveys and the mortgage offer are in place, contracts are exchanged and the deposit is paid – at this point you are legally committed. Completion, when the money moves and you get the keys, usually follows a few weeks later.
6. After you move in
Set up buildings insurance (often required from exchange), register for council tax and note the date your initial mortgage deal ends so you can remortgage in good time.
Your home may be repossessed if you do not keep up repayments on your mortgage.
