Buying your first home is one of the biggest financial decisions you’ll ever make. It can feel overwhelming at first, but the process is straightforward once you understand each stage. This guide walks you through everything you need to know, from getting your finances in order to picking up the keys.
Quick Answer
As a first-time buyer you’ll need a minimum five percent deposit, a mortgage agreed in principle, and a conveyancing solicitor. The process from offer accepted to completion typically takes ten to fourteen weeks. Start by getting mortgage-ready before you begin viewing properties.
Get Your Finances In Order First
Before you look at a single property, sort your finances. Know exactly how much you have saved, what you can realistically borrow, and what the full cost of buying will be beyond the deposit.
Check your credit report. Lenders will look at it and so should you. If there are any errors, get them corrected. If your score is lower than you’d like, there are straightforward steps to improve it before you apply.
Pay down any outstanding debts where you can. Reduce credit card balances. Avoid taking out new credit in the months before a mortgage application.
See What Credit Score Do I Need For A Mortgage? for more detail.
Understand How Much You Can Borrow
Most lenders will offer between four and four and a half times your annual income. On a salary of £35,000 that’s roughly £140,000 to £157,500. On a joint income of £65,000 it’s £260,000 to £292,500.
Your actual offer will depend on your deposit size, credit history, monthly outgoings, and any existing financial commitments. These figures are a guide, not a guarantee.
Speak to a mortgage broker before you start viewing. A broker will give you a realistic picture of what you can borrow and help you find the right deal. Many brokers offer a free initial consultation.
Save Your Deposit
The minimum deposit is five percent of the purchase price. The more you can save, the better the mortgage rates you’ll be offered.
First-time buyers have a few options worth knowing about:
Lifetime ISA. You can save up to £4,000 per year and the government adds a 25 percent bonus. That’s up to £1,000 free money each year. The bonus can be used towards a deposit on a home worth up to £450,000. You must be between 18 and 39 to open one.
Help from family. Gifted deposits from family members are accepted by most lenders. The lender will usually ask for a letter confirming the money is a gift and not a loan.
For a full breakdown, see How Much Deposit Do I Need To Buy A House?
Get A Mortgage Agreement In Principle
Once you have a deposit saved and a rough idea of what you can borrow, get a mortgage agreement in principle. This is a written indication from a lender that they’d be willing to lend you a specific amount, subject to full checks.
It takes around 30 minutes and involves a soft credit check that won’t affect your score. Most estate agents will ask if you have one before booking viewings, and sellers take buyers with one more seriously.
An agreement in principle is not a mortgage offer. Full approval happens after you’ve had an offer accepted and the lender has assessed the property.
See Mortgage Agreement In Principle Explained for more.
Start Your Search
Once you’re mortgage-ready, start looking at properties in your budget. Register with local estate agents, set up alerts on Rightmove and Zoopla, and get a feel for what your money buys in different areas.
Be realistic early on. The areas you can afford might surprise you in both directions. Some parts of Stockport offer excellent value for first-time buyers. Heaton Chapel, Reddish, and parts of Edgeley are worth looking at if budget is a priority without wanting to compromise too much on location.
View more properties than you think you need to. It helps you calibrate what’s good value and what you actually want from a home.
Making An Offer
When you find the right property, do your homework before making an offer. Check sold prices for similar homes nearby on Rightmove or the Land Registry. This tells you whether the asking price is realistic.
Make your offer through the estate agent. Tell them you’re a first-time buyer with a mortgage agreed in principle and no chain. That’s an attractive position for a seller and it gives you negotiating credibility.
Don’t be afraid to offer below the asking price, especially if the property has been on the market for a while. The worst that can happen is they say no.
Instruct A Solicitor
Once your offer is accepted, you’ll need a conveyancing solicitor to handle the legal side of the purchase. They carry out searches, check the title, raise enquiries with the seller’s solicitor, and manage the transfer of funds at completion.
Get quotes from two or three solicitors before instructing. Price matters, but so does responsiveness. A slow solicitor is one of the most common causes of delays.
For local options, see Conveyancing Solicitors In Stockport.
Get A Survey
Your mortgage lender will carry out a valuation of the property. This is not a survey and it’s not done for your benefit. It simply confirms the property is worth what you’re paying.
You should arrange your own survey independently. A HomeBuyer Report covers most standard properties and will flag any significant issues. For older properties or anything that gives you concern, a full structural survey gives more detailed analysis.
The cost of a survey is small compared to the cost of buying a property with undisclosed problems. Don’t skip it.
See What Surveys Do I Need When Buying A House? for a full guide.
Exchange and Completion
Exchange is when the sale becomes legally binding. You’ll sign the contract, pay your deposit to your solicitor, and agree a completion date with the seller.
Completion is the finish line. Your solicitor transfers the remaining funds, the seller’s solicitor confirms receipt, and the estate agent releases the keys. The property is yours.
The gap between exchange and completion is usually one to four weeks. On completion day, try not to book removals too early in the morning. Funds can take time to clear and keys are rarely released before midday.
First-Time Buyer Costs To Budget For
Beyond the deposit, buying a home comes with additional costs that catch many first-time buyers off guard:
Stamp Duty. First-time buyers pay no stamp duty on properties up to £425,000. Above that threshold, five percent is due on the portion between £425,001 and £625,000.
Solicitor fees. Typically £1,000 to £1,800 including searches and disbursements.
Survey. A HomeBuyer Report costs roughly £400 to £600 depending on the property and surveyor.
Mortgage arrangement fee. Some mortgage products carry an arrangement fee of £500 to £1,500. This can usually be added to the mortgage, though you’ll pay interest on it.
Removal costs. Variable depending on how much you’re moving and how far. Budget at least £500 to £1,000 for a standard local move.
For a full breakdown, see How Much Does It Cost To Buy A House?
FAQs
Can I buy a house with a five percent deposit as a first-time buyer?
Yes. Most lenders offer mortgages at 95 percent loan to value, meaning you need a five percent deposit. Rates are higher than at ten or fifteen percent, but it’s a viable route onto the ladder for many first-time buyers.
Do first-time buyers pay stamp duty?
First-time buyers pay no stamp duty on properties up to £425,000. On properties between £425,001 and £625,000, five percent is due on the amount above the threshold. Properties above £625,000 do not qualify for first-time buyer relief.
What is a Lifetime ISA and should I get one?
A Lifetime ISA lets you save up to £4,000 per year with a 25 percent government bonus added on top. It’s one of the best savings tools available to first-time buyers. You must be 18 to 39 to open one and the funds must be used towards a first home worth no more than £450,000.
How long does it take to buy a house as a first-time buyer?
From offer accepted to completion, allow ten to fourteen weeks. Being chain-free as a first-time buyer is an advantage and can sometimes speed things up, but the conveyancing process takes the time it takes regardless.
Do I need a mortgage broker or can I go direct to a lender?
You can apply directly to a lender, but a mortgage broker gives you access to a wider range of products and can advise on which deal suits your circumstances. Many brokers are fee-free, earning their income from the lender instead. For local advice, see Mortgage Brokers In Stockport.
Get The Right Help From The Start
The professionals you choose make a real difference. Find mortgage brokers in Stockport who specialise in first-time buyer applications. Compare conveyancing solicitors in Stockport to find one who is responsive and fairly priced. Getting the right team in place early makes the whole process smoother.