Top Tips for First-Time Buyers: A Practical Guide to Buying Your First Home
Published 8th of April 2013·Updated 28 April 2026
Reviewed by: Reviewed for accuracy April 2026
Buying your first home is one of the biggest financial decisions you will make. The process involves more steps and more costs than most first-time buyers expect. Getting clear on your budget, your mortgage options and the full list of purchase costs before you start viewing properties will save you time, stress and money.
Short Summary
Work out the total monthly cost of ownership before you view a single property. This means mortgage repayments, council tax, service charges (if leasehold), buildings insurance and utility bills. Many first-time buyers budget only for the mortgage and are surprised by what comes on top.
A mortgage in principle (also called an agreement in principle) is a written confirmation from a lender of how much they will lend you. Get one before you start viewing; it shows sellers you are a credible buyer and helps you move quickly when you find the right property.
The deposit is the biggest upfront challenge. Most lenders require a minimum of 5 per cent, but a 10 per cent deposit gives you access to significantly better rates. The government's Lifetime ISA (LISA) lets you save up to £4,000 per year and receive a 25 per cent government bonus towards a first home purchase.
Beyond the purchase price, budget for stamp duty (with first-time buyer relief), solicitor fees, survey costs, mortgage arrangement fees and removal costs. These together typically add £3,000 to £7,000 to the total cost of buying.
How do I work out what I can afford?
Start with your net monthly income (take-home pay after tax and National Insurance). Calculate your fixed monthly outgoings: rent, loan repayments, car finance, subscriptions and average food and travel costs. The difference is the maximum you can safely commit to housing costs.
Most lenders assess affordability based on your income multiplied by four to four-and-a-half times your gross annual salary. A single buyer earning £35,000 can typically borrow between £140,000 and £157,500. Two buyers earning £30,000 each can potentially borrow between £240,000 and £270,000 combined.
Use a mortgage calculator on a lender's website or speak to a fee-free mortgage broker to get a clearer picture before you start viewing properties.
What is a mortgage in principle and why do I need one?
A mortgage in principle is a statement from a lender confirming that, based on an initial assessment, they would be willing to lend you a specified amount. It is not a guarantee, but it is a strong indicator and most estate agents will request one before presenting your offer to a seller.
Getting a mortgage in principle typically involves a soft or hard credit check depending on the lender. A soft check does not affect your credit score. Most agreements in principle are valid for 60 to 90 days.
For first-time buyers, a fee-free whole-of-market mortgage broker such as L&C Mortgages or Habito can compare deals across dozens of lenders and guide you towards the most suitable product for your circumstances.
How much deposit do I need?
The minimum deposit accepted by most high-street lenders including Halifax, Nationwide and Santander is 5 per cent of the purchase price. On a £250,000 property, that is £12,500. A 10 per cent deposit (£25,000) opens access to more competitive rates and significantly reduces your monthly repayments.
The Lifetime ISA is worth considering if you are saving towards your first home. You can save up to £4,000 per year into a LISA and the government adds a 25 per cent bonus (up to £1,000 per year). The funds can be used towards a first home worth up to £450,000. You must be under 40 to open one.
| Deposit percentage | What it unlocks |
|---|---|
| 5% | Minimum requirement; highest rates; government schemes may help |
| 10% | Broader product range; noticeably lower rates than 5% |
| 15% | Good mainstream rates from most high-street lenders |
| 25% or more | Access to the most competitive deals on the market |
What type of mortgage is best for a first-time buyer?
Most mortgage advisers recommend a fixed rate mortgage for first-time buyers. A fixed rate locks in your interest rate for a set period (typically two, three or five years), so your monthly repayment stays the same and you can budget with confidence.
A two-year fix gives you the option to remortgage sooner if rates fall. A five-year fix provides longer stability but locks you in for longer. If you exit a fixed deal early, you will usually pay an early repayment charge.
Once the fixed period ends, your mortgage moves to the lender's standard variable rate (SVR), which is almost always higher. Set a reminder to start comparing remortgage deals three to six months before your fixed period expires.
What are all the costs of buying a home?
The purchase price is only part of the total cost. First-time buyers often underestimate or overlook the following additional costs.
| Cost | Typical amount | Notes |
|---|---|---|
| Stamp Duty Land Tax | £0 to several thousand | First-time buyer relief applies on purchases up to £500,000; check GOV.UK for current thresholds |
| Solicitor/conveyancer fees | £800 to £1,500 | Shop around; avoid the cheapest option if reviews are poor |
| Survey (home buyers report) | £400 to £600 | Identifies structural issues; do not skip this |
| Full structural survey | £700 to £1,500 | Worth it for older or unusual properties |
| Mortgage arrangement fee | £0 to £1,500 | Can be added to mortgage; interest adds up over the term |
| Valuation fee | £150 to £500 | Lender's check on property value; separate from your survey |
| Land Registry fee | £20 to £500 | Scales with purchase price; check GOV.UK |
| Removal costs | £300 to £1,500 | Depends on volume and distance |
Should I negotiate on the asking price?
Yes, almost always. Most sellers set their asking price with some negotiation room built in. In most markets, an initial offer of five to ten per cent below the asking price is a reasonable starting point. The seller can accept, reject or counter.
If the property has been on the market for several weeks with no sale, you have more room to negotiate. If there are multiple parties interested, the seller holds more of the cards.
Agree your maximum price in advance and do not exceed it under pressure. Overpaying because of a bidding situation is a common and expensive mistake among first-time buyers.
FAQ
What is Help to Buy and is it still available?
The Help to Buy Equity Loan scheme for England closed to new applicants in March 2023. Other government support is available, including the Lifetime ISA, the Mortgage Guarantee Scheme (which supports 95% LTV mortgages) and First Homes (a scheme offering discounted new-build homes to eligible first-time buyers in some areas). Check GOV.UK for current availability and eligibility.
What is leasehold and should I avoid it?
Leasehold means you own the property but not the land it sits on. You pay ground rent and service charges to a freeholder. Flats are almost always sold as leasehold. Houses can be leasehold too, though this is less common and often less desirable. Check the lease length: a lease with fewer than 80 years remaining is harder to mortgage and expensive to extend. Ask your solicitor to check the lease terms before you commit.
How long does the full buying process take?
From having an offer accepted to getting the keys typically takes between 8 and 16 weeks. The main variables are solicitor speed, the complexity of the property's legal title and whether you are in a chain. Budget for the process taking longer than you expect.
Can I buy a home on my own?
Yes. Single buyers face a smaller budget than joint buyers but the process is identical. A fee-free broker can help you find lenders who are flexible on income multiples. Schemes such as Shared Ownership allow you to buy a percentage of a property and pay rent on the rest, which can make ownership accessible on a single income in high-cost areas.
What is Shared Ownership?
Shared Ownership is a government-backed scheme that lets you buy a share of a home (between 10 and 75 per cent) and pay subsidised rent on the remaining share. You can buy additional shares over time (called staircasing). It is designed for people who cannot afford to buy outright on the open market. Shared Ownership properties are almost always leasehold, so check the lease terms carefully.