First-Time Buyer Guide (UK)

Start with the mortgage, not the house. UK lenders typically offer four to four and a half times your annual income, and they check your regular outgoings as well as your salary. A £35,000 income usually supports a mortgage of around £140,000 to £157,000, which with a 10% deposit points to a property near £160,000 to £175,000. Then add the one-off costs on top of the deposit, because they are easy to forget and they come due at the worst moment.

The deposit is the hardest part for most first-time buyers. A Lifetime ISA adds 25% on top of what you pay in, up to £1,000 a year, and it is the best-value savings account available if you are buying a first home under £450,000. You need to be 18 to 39 to open one. Beyond that, a regular savings account at the best rate you can find, with a standing order on payday, does the job. Work out your timeline before you start viewing, so you are not disappointed by properties you cannot yet afford.

An Agreement in Principle is a lender confirming, based on a soft credit check, roughly how much they would lend you. It takes minutes, costs nothing, and estate agents usually ask for one before they will take your offer seriously. It is not a mortgage offer, and you are not committed to that lender, but it tells you where you stand and shows sellers you are ready.

Register with estate agents and set up alerts on the property portals. When you view, focus on the things that are expensive to fix rather than the things that are cheap to change. Damp, the boiler, the roof and the electrics matter far more than a dated kitchen. Ask how long the property has been listed and why the seller is moving. Take your time and go back for a second viewing.

Offers in England and Wales are not legally binding until exchange, for either side. Base your offer on what similar properties have actually sold for, not asking prices, which you can check on the Land Registry sold price records. If the property has been listed for months, or the survey later reveals problems, there is usually room to negotiate. Once your offer is accepted, ask the agent to take it off the market.

Three things run in parallel after your offer is accepted. Your lender arranges a valuation, which is for them, not you. You should separately pay for a HomeBuyer report or a full structural survey, which is for you. Your solicitor starts the conveyancing: searches, title checks and enquiries. If you are buying a leasehold flat, expect extra questions about service charges, ground rent and the length of the lease.

Exchange is the point of no return. You pay the deposit, agree a completion date, and the deal becomes legally binding, so you need buildings insurance in place from that day. Completion is moving day: the rest of the money moves between solicitors, you get the keys, and you pay stamp duty within 14 days. Between exchange and completion is usually one to four weeks.

Stamp duty relief is the main one: pay nothing up to £425,000, as long as the property costs £625,000 or less. That saves up to £8,750. A Lifetime ISA adds 25% to your deposit savings. Some lenders offer specific first-time buyer mortgages with smaller deposits, and there are government-backed schemes that allow 95% loan-to-value borrowing. Scotland has its own version of stamp duty relief with a £175,000 threshold instead.