Buying your first home in the UK can feel overwhelming – there are many steps, decisions and details to navigate before you get hold of the keys.
This list of FAQs aims to answer the most common questions first-time buyers have about the process and offer clear, practical guidance to help you approach homeownership with confidence. From saving for a deposit to understanding mortgages and the conveyancing process, this guide is designed to make the journey more straightforward.
To buy a house in the UK, most lenders require a minimum deposit of 5-10% of the property’s value. So if you’re buying a home worth £288,000 (the UK average), a 10% deposit would amount to £28,800. Larger deposits, such as 15-25%, can unlock better mortgage rates, reducing monthly payments and the overall cost of borrowing. Saving for a deposit often requires careful financial planning, and many buyers take advantage of government schemes, like the Lifetime ISA, to reach their target more quickly.
Several government schemes are designed to help first-time buyers get onto the property ladder:
Lifetime ISA (LISA): If you’re under 40, you can save up to £4,000 annually towards your first home, and the government will add a 25% bonus (up to £1,000 per year). Couples using separate LISAs can receive up to £2,000 annually in bonuses.
First Homes Scheme: This offers first-time buyers a minimum 30% discount on newly built properties, which remains tied to the home for future buyers. Eligibility typically includes income caps and purchasing within your local area.
Shared Ownership: This scheme allows you to buy a share of a property (between 10% and 75%) and pay rent on the remaining portion. You can gradually increase your ownership through staircasing.
But the deposit isn’t the only cost during the purchasing period. There are several other costs you should keep in mind:
Stamp Duty: First-time buyers are exempt from Stamp Duty on properties valued up to £425,000. For properties priced between £425,001 and £625,000, a 5% tax is applied to the portion above £425,000.
Legal Fees: Conveyancing costs range from £800 to £1,500, depending on the purchase’s complexity.
Surveys: A basic survey starts at around £400, while a full structural survey can cost over £1,500 for older or larger properties.
Moving Costs: These vary but can include removals, storage, and utility setup fees. You can expect to pay over £1000, but there are, of course, several factors to consider.
Choosing the right mortgage depends on your financial situation and future plans. The main types of mortgages include:
Fixed-Rate Mortgages: These offer a stable interest rate for a set term (typically 2–5 years), providing predictable monthly payments.
Variable-Rate Mortgages: These include tracker mortgages (tied to the Bank of England’s base rate) and standard variable rate (SVR) mortgages (set by lenders). While initial rates may be lower, payments can increase if interest rates rise.
Discount Mortgages: These offer a reduced rate for a limited time but are still subject to rate changes.
Most lenders will offer 4-4.5 times your annual income as a maximum borrowing amount. It’s important to use mortgage calculators and seek advice from brokers to assess affordability and ensure you can manage repayments if interest rates rise.
Conveyancing is the legal process of transferring property ownership. It typically takes 8–12 weeks and involves several steps:
Searches: Your solicitor will conduct local authority and environmental searches to check for issues such as planning permissions or flood risks.
Contracts: Both parties agree on terms, and your solicitor reviews the contract to ensure everything is in order.
Exchange of Contracts: At this stage, the purchase becomes legally binding, and you’ll pay your deposit (usually 10% of the property price).
Completion: This is when the remaining funds are transferred, and you receive the keys to your new home.
Choosing a reputable conveyancer is key to ensuring the process runs smoothly.
A mortgage in principle (MIP) is a document from a lender indicating how much they might lend you based on an initial assessment of your financial situation. While not a full mortgage offer, it shows sellers you’re a serious buyer and provides a guideline for your budget. You can obtain one online or through a lender, and most use a soft credit check that won’t impact your credit score. Having an MIP in place before property hunting can streamline the buying process and give you an advantage in negotiations.
When viewing a property, it’s important to assess its suitability for both your current and future needs. Key considerations include:
Condition: Look for signs of damp, structural issues, or outdated wiring. A professional survey can identify hidden problems.
Space and Layout: Consider whether the property has enough bedrooms, storage, and functional spaces to meet your needs.
Location: Evaluate transport links, local amenities, schools, and the overall neighbourhood.
Energy Efficiency: Check the Energy Performance Certificate (EPC) rating, as this affects running costs.
Taking notes and photos during viewings can help you compare properties and make an informed decision.