First-Time Buyer's Complete Guide: How to Buy Your First Home in the UK
Most first-time buyer guides give you a rough checklist and leave the numbers vague. This one does the opposite — every step in order, real costs at three price points, and the April 2025 stamp duty changes explained correctly (many guides still get this wrong). Use the interactive timeline to jump to where you are right now.
Are you actually a first-time buyer?
Before looking at a single property, confirm your status — because it determines your stamp duty bill, your access to government schemes, and your mortgage product eligibility. The legal definition is stricter than most people expect.
You are a first-time buyer if neither you, nor anyone you are buying with, has ever owned residential property anywhere in the world. Not just in the UK. If you owned a studio in Madrid, held a share in a family home in Lagos, or were registered as a joint owner of a flat in Dublin — you are not a first-time buyer under UK law, even if this is your first purchase in the UK.
This matters immediately because first-time buyer status affects your stamp duty (potentially saving you thousands), your eligibility for the Lifetime ISA, the First Homes scheme, and some specialist mortgage products. Getting this wrong — and discovering it on exchange day — is expensive and avoidable.
Joint purchase: one owner has previously owned
If your partner, friend, or family member has previously owned property anywhere in the world, both buyers lose first-time buyer relief entirely. There is no partial discount. This is one of the most expensive surprises in property transactions — check before you commit to a price.
Property owned abroad
Owning or having owned a residential property in any country disqualifies you. The definition is global, not just UK-based. A holiday apartment in Portugal, a buy-to-let in Cyprus, or a share in a family property in Italy all count. Your solicitor should confirm your position in writing before exchange.
Inherited property
Inheriting a property does not automatically disqualify you — but owning it does. If probate is complete and you are registered as the owner at Land Registry, you are no longer a first-time buyer. If you are a named beneficiary but the estate has not been settled, check your exact position with a solicitor before making offers.
Buying after divorce or separation
If you jointly owned the marital home, you have previously owned property — even if your ex retained it in the settlement. You are not a first-time buyer. However, if you were never formally registered as an owner at Land Registry (rare but possible in some informal arrangements), your solicitor can confirm your status.
Coming from abroad
If you have never owned property anywhere but are not currently a UK resident, you still qualify as a first-time buyer for stamp duty purposes — but a separate 2% SDLT non-resident surcharge applies on top of standard rates for purchases in England. Confirm your residency status with your solicitor before exchange.
The 8-step home-buying journey
Here is the full buying process in the order it actually happens — with typical timings and the key things to do at each stage. Use the interactive navigator below to jump to where you are right now.
The typical process in England and Wales runs 12–20 weeks from offer accepted to completion. First-time buyers with no chain often complete in 12–16 weeks. In Scotland, the process is different — once missives are concluded, completion usually follows within 6–10 weeks, but the contract becomes legally binding earlier. Engage a Scottish solicitor before making any offers.
Getting your mortgage: the basics
For most first-time buyers, the mortgage is the most intimidating part of the process. It doesn't need to be.
How much can you borrow?
Lenders assess affordability individually — they look at your gross income, existing monthly outgoings, debts, and the mortgage payment itself under a stress test (typically at 3% above the product rate). As a rough guide, most lenders offer between 4 and 4.5 times your annual income. Some specialist lenders offer up to 5.5× or 6× for first-time buyers with strong profiles, larger deposits, and certain professions (medicine, law, accountancy).
Income multiples are a starting point — the actual figure depends on your specific outgoings. Two buyers earning £50,000 each can be offered very different amounts if one has car finance and a student loan and the other has neither.
What lenders check
- Income: Payslips (typically 3 months) or, if self-employed, two to three years of accounts and an SA302.
- Monthly outgoings: Subscriptions, credit cards, car finance, existing loans, child maintenance.
- Credit history: Missed payments, County Court Judgements (CCJs), defaults — these can reduce your offer or result in a decline.
- Bank statements: Three months; frequent gambling transactions and unexplained large transfers draw scrutiny.
- Deposit source: Gifted deposits require a letter; large cash deposits require explanation.
Fixed vs Tracker: the 2026 decision
Fixed rates lock your monthly payment for a set term (2, 3, or 5 years). Tracker rates move directly with the Bank of England base rate — currently held at 3.75% — plus a fixed margin. With the base rate having fallen significantly from its 2023 peak, trackers are currently priced competitively relative to many fixed deals, but you take on the risk of payment rises if the rate moves upward again. The best fixed rate available to you depends heavily on your deposit size and lender — always compare with a whole-of-market broker rather than relying on advertised headline rates.
Use a whole-of-market broker
A broker with access to the full market can compare thousands of deals simultaneously, identify lenders suited to your specific situation, and handle the application on your behalf. Most are paid commission by the lender — not a fee from you. There is almost never a good reason not to use one, especially as a first-time buyer.
The four stages of getting your mortgage
1) Mortgage in Principle (MIP). Also called an AIP or DIP — a preliminary indication from a lender based on income and a soft credit check. Not a commitment. Get one before viewing properties so you can make offers credibly. Most MIPs last 60–90 days.
2) Full application. Submitted after your offer is accepted. The lender fully verifies income, outgoings, credit history, and instructs a property valuation. This typically takes 2–6 weeks depending on lender workload.
3) Mortgage offer. The lender's formal, binding commitment to lend a specific amount on a specific property. Usually valid for 3–6 months. Your solicitor needs to receive this before exchange can happen.
4) Completion. On completion day your solicitor draws down the mortgage funds, transfers them to the seller's solicitor, and you receive the keys. The mortgage is live from this point.
How much deposit do you need?
The minimum deposit for a residential mortgage is 5% of the purchase price. On the average first-time buyer property in England (around £243,500), that is approximately £12,175. But the deposit is not the only upfront cash you need — see the full cost section below.
| Deposit | LTV | What it means in practice |
|---|---|---|
| 5% | 95% | Available from most mainstream lenders; fewer products, higher rates; exposed if prices fall |
| 10% | 90% | Significantly more products; materially better rates; the most common sweet spot for FTBs |
| 15–20% | 80–85% | Better rates still; the threshold where pricing improves most noticeably across lenders |
| 25%+ | 75% or lower | Best rates; lenders compete hardest at this tier |
Saving for a 10% deposit rather than 5% is one of the most impactful financial decisions you can make — not just because of the rate differential, but because at 95% LTV you are more exposed if property values fall. Even a small drop can leave you in negative equity, limiting your options for years.
Lifetime ISA: up to £1,000 free per year
If you are under 40 and at least 12 months away from buying, a Lifetime ISA lets you save up to £4,000 per year and receive a 25% government bonus — up to £1,000 of free money per year. On a £250,000 property purchase with five years of saving, that is up to £5,000 in bonus contributions towards your deposit.
The conditions are strict: the property must be worth £450,000 or less — a cap that has not changed since 2017 despite significant house price inflation. If you are buying in London, where the average property price is around £553,000, the LISA is effectively unusable for most purchases. Outside London, it remains one of the best deposit-boosting tools available. The account must be held for at least 12 months before you can use it penalty-free. Withdrawals for any other purpose before age 60 attract a 25% penalty — which claws back the government bonus plus a portion of your own savings, leaving you worse off than if you had never opened one. Open one the day you decide you're buying — the 12-month clock starts the day you open the account, not the day you deposit.
Gifted deposits
Most lenders accept deposits gifted by direct family members — parents, grandparents, or siblings. Gifts from friends or distant relatives are often declined entirely. The donor must sign a gifted deposit letter confirming the money is a gift (not a loan), that they have no interest in the property, and that they will not hold a charge over it. Your lender will also require the donor's bank statements showing the source of the gifted funds — not just a declaration — as part of anti-money laundering checks. Confirm your lender's specific policy before the donor transfers any money.
Government schemes in 2026
Several schemes exist specifically to help first-time buyers. None are essential, but some can make a material difference to how much deposit you need or what properties you can access.
Lifetime ISA
Save up to £4,000/year and receive a 25% government bonus (up to £1,000/year). Account must be held for 12 months before penalty-free use.
Shared Ownership
Buy a share of a home (10–75%) and pay subsidised rent on the rest, owned by a housing association. Only need a mortgage on the share purchased. Can staircase to full ownership later.
Mortgage Guarantee Scheme
The government's permanent scheme launched in July 2025. Enables lenders to offer 95% LTV mortgages on properties up to £600,000 — open to first-time buyers and home movers.
First Homes
New-build homes sold at 30–50% below market value, targeting local first-time buyers (priority often given to key workers). The discount is locked in and passes to the next eligible buyer when you sell.
Help to Buy Equity Loan
Help to Buy no longer exists for new purchases. Any guide still listing it as a live option is out of date. If you have an existing equity loan, separate rules apply at remortgage — speak to your lender.
For current eligibility and regional variations on all schemes, see GOV.UK's affordable home ownership hub. Scheme rules and price caps change; always verify before making any plans around a specific scheme.
Stamp duty for first-time buyers (2025–26)
Stamp duty is usually the third biggest upfront cost after the deposit and mortgage fees — and since April 2025, it has become significantly more expensive for most buyers. Many guides are still showing the pre-April-2025 figures. The ones below are correct.
What changed on 1 April 2025
The government's temporary stamp duty relief — which had been in place since September 2022 — expired on 31 March 2025. Thresholds reverted to pre-2022 levels:
| Threshold | Before 1 April 2025 | From 1 April 2025 |
|---|---|---|
| FTB nil-rate band | £425,000 | £300,000 |
| Max property for FTB relief | £625,000 | £500,000 |
| Standard nil-rate band | £250,000 | £125,000 |
Current first-time buyer SDLT rates (England & Northern Ireland)
| Band | First-time buyer rate | Standard buyer rate |
|---|---|---|
| £0 – £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001 – £300,000 | 0% (FTB nil-rate) | 5% |
| £300,001 – £500,000 | 5% | 5% |
| Over £500,000 | FTB relief lost — standard rates apply in full | |
Source: HMRC · Verified April 2025
Watch the £500,000 cliff edge. If the property costs more than £500,000, you are treated as a standard buyer — no first-time buyer discount at all. A first-time buyer at £499,000 pays £9,950 in stamp duty. The same buyer at £501,000 pays £15,050 under standard rates — a £5,100 difference for a £2,000 increase in purchase price. This is consequential enough to affect negotiation strategy if you're near that threshold.
The joint buyer trap. If one buyer has previously owned property, both lose FTB relief entirely. On a £350,000 purchase: two genuine first-time buyers pay £2,500 in SDLT. The same purchase with one non-FTB partner pays £7,500 — a £5,000 difference on that single purchase.
Three worked examples
Entire property within nil-rate band
£300k–£350k at 5% = £2,500
£300k–£480k at 5% = £9,000
Scotland and Wales
Scotland has its own Land and Buildings Transaction Tax (LBTT). First-time buyers receive an enhanced nil-rate band up to £175,000 (versus £145,000 for standard buyers).
Source: Revenue Scotland.
Wales has Land Transaction Tax (LTT) but offers no first-time buyer relief — standard rates apply to everyone. The nil-rate band is £225,000, then 6% on the next slice up to £400,000.
Source: Welsh Revenue Authority.
All the costs: your complete budget
Most first-time buyers focus on the deposit and underestimate everything else. Here is the full cost picture so you can see your total upfront requirement in one place.
| Cost | What it covers | Typical range |
|---|---|---|
| Deposit | Your equity stake in the property | 5–20% of purchase price |
| Stamp Duty (SDLT) | Government property transaction tax | See worked examples above |
| Solicitor / Conveyancer | Legal work: searches, contracts, transfers, LR registration | £1,000–£2,500 incl. disbursements |
| Land Registry fee | Registering ownership at HMLR | £40–£295 (scales with price) |
| Survey (RICS Level 2) | Independent condition report — not the lender's valuation | £400–£900 |
| Mortgage arrangement fee | Lender's product fee (some deals are fee-free) | £0–£1,500 |
| Mortgage valuation | Lender's basic property check — often included free | £0–£300 |
| Broker fee | Mortgage adviser (most are fee-free, paid by lender) | £0–£500 |
| Buildings insurance | Required from exchange onwards — mandatory | £150–£400/year |
| Removal costs | Moving your belongings | £450–£1,400 |
| Initial furnishing & repairs | Immediate needs — locks, white goods, urgent fixes | £500–£3,000+ |
All-in budget at three price points (10% deposit, England, FTB)
| Cost | £250,000 property | £350,000 property | £480,000 property |
|---|---|---|---|
| 10% deposit | £25,000 | £35,000 | £48,000 |
| Stamp Duty (FTB) | £0 | £2,500 | £9,000 |
| Solicitor/Conveyancer | ~£1,500 | ~£1,700 | ~£2,000 |
| Survey (RICS Level 2) | ~£500 | ~£600 | ~£700 |
| Mortgage arrangement fee | ~£999 | ~£999 | ~£999 |
| Land Registry | £150 | £150 | £150 |
| Removals | ~£700 | ~£700 | ~£900 |
| Total (approx.) | ~£28,849 | ~£41,649 | ~£61,749 |
Land Registry fees from HMLR Scale 1 (electronic submissions). Solicitor and survey figures are industry-typical estimates — always get fixed-fee quotes.
A note on surveys: don't skip this
Your mortgage lender arranges a basic valuation — that is for their benefit, not yours. It tells them the property is worth what you're borrowing for it. It will not flag a leaking roof, subsidence, damp, or structural problems.
- RICS Level 1 (~£300–£500): Visual check, condition ratings. Suitable only for brand-new or near-new homes in excellent condition.
- RICS Level 2 (HomeBuyer Report) (~£400–£900): The right choice for most standard properties. Identifies visible defects and risks; gives leverage to renegotiate if issues are found.
- RICS Level 3 (Building Survey) (~£700–£1,500): Comprehensive structural inspection. Essential for pre-1920s homes, unusual construction, anything with visible issues, and conversions.
Skipping a survey to save £500 is one of the most expensive false economies in property. A survey that identifies a problem — and gives you grounds to renegotiate — can pay for itself many times over.
After completion: what comes next
Completion is not the end. There are a few immediate practical steps, and some important decisions in the first few years that can save you significant money.
Register for council tax and utilities immediately. Your solicitor handles Land Registry registration, but you need to contact your local council, utilities providers, and the DVLA to update your address.
Mortgage reviews and remortgaging. Most first-time buyers are on a fixed or tracker deal for two to five years. Set a calendar reminder for 90 days before your deal expires — that is when to start looking at remortgage options. Rolling onto a lender's Standard Variable Rate (SVR) when your deal ends is almost always more expensive than switching. SVRs are typically above 7% — roughly 3 or more percentage points above most fixed deals. On a £200,000 mortgage, that is an extra £300–400 per month you would be paying unnecessarily.
Overpayments. Many mortgages allow you to overpay by up to 10% of the outstanding balance per year without an Early Repayment Charge. Overpaying early in your term — when most of your payment is interest — has a disproportionate impact on the total interest you pay and can shorten your term by several years.
Frequently asked questions
Yes, with two distinct approaches your solicitor should model. Under the staged route, SDLT is only triggered when a single staircasing transaction takes your cumulative ownership above 80% — earlier tranches are entirely SDLT-free. Under the market value election, you pay SDLT on the full property value upfront at first-time buyer rates, which permanently eliminates all SDLT on any future staircasing transaction. For a £350,000 property where you buy a 40% share: staged SDLT is on £140,000 (likely £0 at FTB rates); the market value election means SDLT on the full £350,000 (£2,500 FTB). Ask your solicitor to model both before exchange.
Yes — both buyers lose the relief entirely. First-time buyer status requires that none of the buyers have ever owned residential property anywhere in the world. There is no partial discount. This is worth factoring into your budget before committing to a purchase price, since it can add thousands to your stamp duty bill. Some buyers in this situation choose to buy in the first-time buyer's name only — but this has its own legal and mortgage complexity; take specialist advice before doing so.
No — 5% deposits are available from most mainstream lenders, and the permanent Mortgage Guarantee Scheme (launched July 2025) keeps 95% LTV products in the market for properties up to £600,000. That said, a 10% deposit unlocks materially better rates and a wider choice of lenders. If you are in a position to save a little longer to reach 10%, it is usually worth it — both for the rate differential and the reduced exposure to property value movements.
A Mortgage in Principle (also called AIP or DIP) is a preliminary, non-binding indication based on limited information — typically income and a soft credit check. It is not a commitment. A full mortgage offer is the lender's formal, binding commitment to lend a specific amount on a specific property, issued after full verification of documents, credit history, and the property valuation. Many things can change between an MIP and a full mortgage offer — income changes, credit events, or survey results — which is why an MIP should be treated as a starting point, not a guarantee.
In England and Wales, the typical process from offer accepted to completion takes 12–20 weeks. First-time buyers with no chain often complete in 12–16 weeks. Delays are most commonly caused by slow local authority searches (some councils are taking 6–8 weeks), lenders' workloads, or issues uncovered in surveys that require renegotiation. In Scotland, the process is different — once missives are concluded, completion is usually 6–10 weeks from accepted offer, but the contract becomes legally binding earlier.
It depends heavily on property price, deposit size, local rental rates, and how long you plan to stay. Monthly ownership costs — your mortgage repayment plus buildings insurance, maintenance, and any leasehold charges — are often higher than people expect compared to renting an equivalent property. On top of that, factor in the opportunity cost of your deposit: that cash could be earning a return elsewhere. Renting keeps your capital liquid and your options open. There is no universal right answer — model your specific numbers carefully rather than relying on a rule of thumb.
Yes — most lenders accept gifted deposits, but the rules are stricter than many people expect. Lenders typically only accept gifts from direct family members — parents, grandparents, or siblings. Gifts from friends, aunts, uncles, or distant relatives are often declined. The donor must sign a gifted deposit letter confirming the money is a gift (not a loan), they have no interest in the property, and they will not hold a charge over it. Your lender will also require the donor's bank statements showing the source of the gifted funds as part of anti-money laundering checks. Ask your solicitor to confirm what your specific lender requires before the donor transfers any money.
The bottom line
The single most useful thing you can do right now — before looking at a single property — is run the numbers honestly. Know your borrowing ceiling, know your complete upfront cost, and know what monthly payment you can genuinely sustain. Everything else follows from that.
📖 Also worth reading: Stamp Duty Explained 2025/26 - the April 2025 changes in full, including Scotland and Wales. Mortgage Repayments Explained — why you pay mostly interest early on, and how to use that to your advantage. How Much Can I Borrow? — income multiples, stress tests, and what actually shapes a lender's offer.