Taking your first step on the property ladder

TL;DR: Buying your first home takes planning, patience, and the right professional support.

Getting mortgage-ready early and understanding your budget gives you a head start over other buyers. Government schemes like the Mortgage Guarantee Scheme and Lifetime ISA can help with smaller deposits.

Speaking to an independent mortgage broker is one of the best things you can do before you start viewing properties.

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Buying your first home is one of the biggest financial commitments you’ll ever make. The average first-time buyer in England is now 34 years old, according to the English Housing Survey 2024-25, and the median deposit stands at £36,500. It’s exciting, yes, but it also comes with a fair amount of stress and uncertainty.

From saving a deposit to understanding stamp duty, the process involves a lot of moving parts that can catch you off guard if you’re not prepared.

First-time buyers do have a genuine advantage, though.

Because you don’t already own a home, you’re not part of a property chain. Sellers like this because it means your purchase isn’t tied to the sale of another property, which can speed things up and reduce the risk of the deal falling through.

With the right preparation, you can make this advantage count.

This guide walks you through the key steps of buying your first home, from setting your budget to completing the purchase. By the end, you’ll have a clearer picture of what to expect and where to get help along the way.

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How Much Can You Afford as a First-Time Buyer?

Before you start browsing property websites or booking viewings, you need to know what you can afford.

This sounds obvious, but many first-time buyers skip this step and end up wasting time looking at homes that are out of reach.

How Do You Work Out Your First-Time Buyer Budget?

Start by looking at your income, your savings, and your monthly outgoings. A mortgage lender will assess all of these when deciding how much they’re willing to lend you.

Most lenders will offer between four and four and a half times your annual income, though this varies depending on your circumstances.

If your household income is £90,000, for example, you could potentially borrow between £360,000 and £405,000.

Add your deposit to that figure, and you’ll have a realistic idea of your price range. Don’t forget to factor in extra costs like solicitor fees, survey charges, and removal costs, as these can add several thousand pounds to your total spend.

What Is an Agreement in Principle and Why Do You Need One?

An Agreement in Principle (sometimes called a Decision in Principle) is a statement from a mortgage lender confirming how much they’d be prepared to lend you. It’s based on a basic review of your finances and credit file, and most estate agents will expect you to have one before they take you seriously as a buyer.

Getting one early puts you in a stronger position.

It shows sellers (and agents) that you’re a credible buyer who can move quickly, and it helps you set a firm budget so you don’t fall in love with a property you can’t afford. Your mortgage broker can arrange this for you, often within 24 hours.

What Are the Extra Costs of Buying Your First Home?

The purchase price of your home is just the starting point. There are several other costs that first-time buyers often underestimate, and you need to know about them before you start your search.

Stamp Duty Land Tax

Since April 2025, first-time buyers in England and Northern Ireland pay no stamp duty on properties up to £300,000.

If your property costs between £300,001 and £500,000, you’ll pay 5% on the portion above £300,000. Properties over £500,000 don’t qualify for first-time buyer relief, and you’d pay the standard rates instead.

If you bought a home for £450,000 as a first-time buyer, you’d pay 5% on the £150,000 above the £300,000 threshold. That works out at £7,500 in stamp duty.

It’s a significant amount, and one that needs to be built into your budget from the start. The English Housing Survey 2024-25 found that the median first-time buyer deposit was £36,500, with 59% of buyers putting down less than 20% of the purchase price.

When you add stamp duty and other fees on top of your deposit, the total upfront cost can be considerably higher than many people expect. Scotland and Wales have their own property tax systems with different thresholds, so check the rules for where you plan to buy.

Solicitor and Conveyancing Fees

You’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase.

Their job is to carry out property searches, review the contract, and transfer ownership of the property into your name. This process is called conveyancing. Fees vary, but expect to pay somewhere between £1,000 and £2,000 including searches and disbursements.

Survey Costs

Your mortgage lender will carry out a basic valuation of the property, but this is for their benefit, not yours. It tells them whether the property is worth what you’re paying for it. If you want a proper check on the condition of the building, you’ll need to pay for a separate survey.

A HomeBuyer Report covers the main areas of concern and is suitable for most standard properties. A full Building Survey goes into much more detail and makes sense for older homes or properties that look like they might need work. Surveys can cost anywhere from £300 to over £1,000, depending on the type and the size of the property.

What Government Schemes Help First-Time Buyers?

Several government-backed schemes are designed to help first-time buyers, and you should check which ones you might be eligible for before committing to a purchase.

The Mortgage Guarantee Scheme (Freedom to Buy)

Launched permanently in July 2025, this scheme encourages lenders to offer mortgages with deposits as low as 5%. The government provides a guarantee to participating lenders, which reduces their risk and makes them more willing to lend at higher loan-to-value ratios. You don’t apply for this scheme directly.

Instead, you simply take out a qualifying mortgage from a participating lender.

The property must cost £600,000 or less, and the mortgage must be a repayment type (not interest-only). It’s not limited to first-time buyers either, so it can also help people moving home with a small deposit. That said, if you can save a bigger deposit, you’ll generally get access to better interest rates, so building up your savings remains a smart move where possible.

Lifetime ISA

If you’re aged between 18 and 39, you can open a Lifetime ISA and save up to £4,000 per year towards your first home.

The government adds a 25% bonus on top of your contributions, which means you’d receive up to £1,000 a year in free money. You can use the funds towards a property costing up to £450,000.

There’s a penalty for withdrawing the money for anything other than your first home purchase or retirement, so this account works best if you’re certain you want to buy.

Over several years, the bonus can make a real difference to the size of your deposit. Hargreaves Lansdown data shows that the average property purchased using a Lifetime ISA in 2025 cost £303,884, well above the UK average first-time buyer price. Sarah Coles, head of personal finance at Hargreaves Lansdown, has noted that the LISA “is one of the few ways that those whose parents [have] less available cash can buy a place of their own, and so is incredibly valuable for younger people.”

Shared Ownership

If buying outright isn’t realistic right now, shared ownership lets you purchase a share of a property (usually between 25% and 75%) while paying rent on the remaining share. Over time, you can buy larger portions of the property through a process called staircasing. It’s available through housing associations and is mainly aimed at buyers with a household income below £80,000.

Bear in mind that shared ownership comes with service charges and rent on the share you don’t own, so the monthly costs can add up. Always get the full breakdown before committing.

How Do You Choose the Right Property?

Once you know your budget and what schemes are available to you, it’s time to start looking at properties. This is the enjoyable part, but it’s also where emotions can take over if you’re not careful.

Stay Within Your Budget

Stretching your finances for that extra bedroom or the bigger garden might be tempting, but overcommitting on your first home can leave you financially vulnerable. Set a firm upper limit and stick to it. If a property is above your budget, don’t view it unless you’re prepared to negotiate hard on the price.

Research what similar homes in the area have sold for recently.

The Land Registry’s price paid data and tools like Zoopla’s sold prices feature can give you a good indication of whether a property is fairly priced. Asking prices are just that: a starting point. Sellers expect some negotiation in most cases, though the strength of your position will depend on the local market.

Keep Your Composure During Viewings

When you find a home you love, it’s natural to feel excited. But try not to show it too much during the viewing.

If the estate agent or seller can see you’re emotionally attached, it weakens your negotiating position. Be polite, ask plenty of questions, and take your time to look at the property properly.

Remember that estate agents work for the seller, not for you.

Their job is to get the highest price possible for the property. They may be helpful and friendly, but their loyalty lies with the person paying their commission. Keep this in mind during viewings and when you’re discussing offers.

Do You Need a Mortgage Broker as a First-Time Buyer?

Buying your first home involves several professionals, and choosing the right ones can make the process much smoother.

Why a Mortgage Broker Matters

A mortgage broker searches the market on your behalf to find the most suitable mortgage for your circumstances. Unlike going directly to a bank, a whole-of-market broker has access to deals from around 100 lenders, including some that don’t deal directly with the public.

Around a third of lenders only work through brokers, so without one you could be missing out on better deals.

For first-time buyers, a broker’s knowledge is a real asset.

They can explain the different types of mortgages available, help you understand what you can afford, and guide you through the application process. If you have any complications, such as being self-employed, having a gifted deposit, or working with a smaller deposit, a broker can point you towards lenders who specialise in those situations.

Instruct a Solicitor Early

You can find and instruct a solicitor or conveyancer before you’ve had an offer accepted. Doing this puts you ahead because your legal team is ready to go as soon as you need them.

Once your offer is accepted, your solicitor can begin the conveyancing process straight away, which helps keep things moving and shows the seller you’re serious about completing quickly.

How Does Your Credit Score Affect a Mortgage Application?

Your credit score plays a big part in whether you’ll be approved for a mortgage and what interest rate you’ll be offered.

According to the English Housing Survey 2024-25, mortgagors spend an average of 19% of their household income on mortgage payments, compared with 39% of income for private renters (excluding housing support). The rate you’re offered directly affects how much of your income goes towards your mortgage each month, so it pays to get your credit file in good shape before you apply.

Before You Apply

Check your credit report with all three main agencies (Experian, Equifax, and TransUnion) well before you apply for a mortgage. Look for any errors and get them corrected. Make sure you’re on the electoral roll, as this is one of the simplest ways to improve your credit score. Pay off any outstanding debts where possible, and avoid applying for new credit in the months leading up to your mortgage application.

During the Mortgage Process

Once your mortgage application is underway, keep your finances stable.

Don’t take out new credit cards, apply for loans, or make any large unusual purchases. Lenders will check your credit file again before completion, and any changes could delay or even derail your approval.

Stay consistent with your spending and keep up all your existing repayments on time.

What Should You Check Before Buying Your First Property?

A property might look perfect on the surface, but there can be problems underneath that only a professional survey will uncover. Knowing what to look out for can save you money and prevent unpleasant surprises after you move in.

Standard and Non-Standard Construction

Most homes in the UK are built with solid brick or block walls and a tiled roof.

This is called standard construction, and every mortgage lender is happy to lend against it.

However, some properties fall into the non-standard construction category. This includes prefabricated concrete (PRC) homes, steel-framed houses, timber-framed buildings, and properties with flat roofs or unusual cladding.

Non-standard construction doesn’t mean there’s anything wrong with the property, but it does limit your choice of mortgage lenders.

Fewer lenders means less competition, which can mean higher rates or stricter terms. A mortgage broker can advise you on which lenders will consider non-standard properties if this applies to the home you’re interested in.

Commercial Property Proximity

Something that catches many first-time buyers by surprise is the impact of nearby commercial properties.

If the home you’re buying is next door to a shop, takeaway, pub, or other business premises, some lenders may refuse to offer a mortgage or may reduce the amount they’re willing to lend.

Commercial activity next door can affect the property’s value and desirability in the eyes of a lender. Your surveyor and your mortgage broker should flag this early if it’s likely to cause a problem.

Take Action and Get Started

Buying your first home takes time, and the sooner you start preparing, the better your position will be when you find the right property. Get your finances in order, speak to a mortgage broker, and start saving as much as you can towards your deposit.

We can introduce you to an experienced, independent mortgage broker who specialises in helping first-time buyers. They’ll search the whole market for you and guide you through every stage of the process. Visit our Contact a Broker page to get in touch and take that first step towards owning your own home.