First-Time Buyer Complete Guide — From Saving Your Deposit to Getting the Keys

Buying your first home is one of the most significant financial decisions you'll make. The process can feel overwhelming, but broken into stages it's entirely manageable. This guide takes you from saving your first pound to collecting your keys.

Step 1 — Saving Your Deposit

The minimum deposit for a residential mortgage is typically 5% (though some products require 10–15%). A larger deposit gives you access to better mortgage rates, reducing your monthly payments and total interest.

**Lifetime ISA (LISA)** — if you're between 18 and 39, you can save up to £4,000 per year in a LISA and receive a 25% government bonus (up to £1,000/year). The property must cost no more than £450,000 and you must have held the LISA for at least 12 months before using it. Penalty for non-qualifying withdrawal: 25% (meaning you lose the bonus and a portion of your own savings).

**Help to Save** — for those on Universal Credit or Working Tax Credit.

**Family gifted deposit** — increasingly common. Lenders require a signed gifted deposit letter confirming the money is a gift, not a loan.

Step 2 — Getting a Mortgage in Principle

Before you start seriously viewing, get an Agreement in Principle (AIP) from a lender or through a broker. This shows sellers you're a credible buyer. It's based on your income, outgoings, and credit score and takes 1–3 days.

Step 3 — Property Search

Search on Rightmove and Zoopla, register with local estate agents (many properties sell before reaching the portals), and attend open days. When you find a property, research the area: schools, transport, local amenities, flood risk, planning applications nearby.

Step 4 — Making an Offer

Offers are made through the estate agent verbally, then confirmed in writing. You can offer below asking price — consider the asking price relative to comparable sold prices (on Rightmove's Sold Prices tool or Zoopla's estimates). Once an offer is accepted, instruct a solicitor immediately.

Step 5 — Instructing a Solicitor

A conveyancing solicitor handles the legal transfer of ownership. Get three quotes — compare total costs including searches and disbursements, not just the headline legal fee. Instruct on the day your offer is accepted.

Step 6 — Survey and Mortgage Application

Commission your survey (at least a Level 2 HomeBuyer Report) and submit your full mortgage application simultaneously. Both take 2–4 weeks.

Step 7 — Exchange and Completion

Once all searches are returned, mortgage offer issued, and your solicitor is satisfied with the title, you exchange contracts (legally binding, deposit paid) and agree a completion date. Completion is the day you get your keys.

Government Schemes for First-Time Buyers

**Shared Ownership** — buy a share of a property (25–75%) and pay rent on the remainder to a housing association. Useful where full market purchase is unaffordable, but check service charges and lease terms carefully.

**First Homes** — new build properties discounted by at least 30% for first-time buyers and key workers. Available on selected developments.

Stamp Duty Relief

First-time buyers pay no Stamp Duty Land Tax on properties up to £425,000 (as at 2026 — check HMRC for current thresholds, which have changed). On properties up to £625,000, you pay SDLT only on the portion above £425,000 at 5%.

Common First-Time Buyer Mistakes

• Not getting a survey and discovering problems post-completion
• Underestimating total purchase costs (legal fees, survey, moving costs add up)
• Over-extending on mortgage payments (stress-test at higher rates)
• Not reading the lease (for leasehold flats — service charges, ground rent, lease length)
• Skipping the final inspection before completion

Property Passport UK is free to set up the moment you collect your keys. Your EPC, survey report, and all completion documents can be stored from day one, building the property record you'll thank yourself for when it comes to selling.