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First Time Buyer Guide

Everything you need to know about buying your first property in the UK — from mortgages to surveys to exchange.

8 min readPublished 15 January 2025

Getting started

Buying your first home is one of the biggest financial decisions you will make. Before you start browsing Rightmove, get a clear picture of your finances. Work out your deposit (most lenders want at least 5%, but 10–15% gets you better rates), check your credit score, and get a mortgage agreement in principle (AIP). An AIP shows sellers you are serious and tells you exactly what you can borrow.

How much can you afford?

Lenders typically offer 4–4.5 times your annual income, though some stretch to 5x for higher earners. Remember to budget beyond the purchase price: stamp duty, solicitor fees (£1,000–£2,000), survey costs (£300–£700), and moving expenses all add up. A good rule of thumb is to set aside 3–5% of the purchase price for these additional costs.

The buying process

Once you find a property and your offer is accepted, the process typically takes 8–12 weeks. Your solicitor handles conveyancing (the legal transfer), you will need a survey (at minimum a Level 2 HomeBuyer Report for older properties), and your mortgage lender will do their own valuation. Exchange of contracts is when it becomes legally binding — before that, either party can pull out.

Exchange and completion

At exchange you pay your deposit (usually 10% of the purchase price) and agree a completion date, typically 1–2 weeks later. On completion day, the remaining funds transfer, you get the keys, and the property is yours. Your solicitor registers you as the new owner with the Land Registry.

First-time buyer benefits

First-time buyers in England pay no stamp duty on the first £425,000 of a property priced up to £625,000 (as of April 2025). You may also be eligible for a Lifetime ISA (25% government bonus on savings up to £4,000/year) or shared ownership schemes. Always check current government schemes as these change regularly.

Common mistakes to avoid

Do not skip the survey to save money — it can reveal problems worth tens of thousands. Do not stretch to your absolute maximum budget; leave room for rate rises and unexpected costs. Get buildings insurance from exchange date, not completion. And never rely on verbal promises — get everything in writing.

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