Keep the main moving parts of a first purchase together: deposit planning, Agreement in Principle timing, stamp duty relief, Lifetime ISA rules and the difference between live schemes and legacy ones.
Deposit
Many first-time buyers start by testing whether they can reach at least a 5% deposit
Agreement in Principle
Useful before you offer, but still only a lender estimate
Lifetime ISA
25% bonus, with a 12-month opening rule for a first-home withdrawal
Key Checks
A first purchase becomes much easier to manage when the deposit, lender paperwork and scheme rules are kept in the same plan.
Many first-time buyers start by testing whether they can reach at least a 5% deposit. A larger deposit can widen lender choice and improve pricing, but the deposit is only one part of the money needed to buy.
An Agreement in Principle can strengthen your position with sellers, but the lender can still revise or refuse the case once the full application and property checks begin.
In England and Northern Ireland, relief applies at 0% up to £300,000 and 5% on the slice from £300,001 to £500,000, as long as the purchase price does not go above £500,000.
The Help to Buy: Equity Loan scheme is closed to new buyers. In practice, current first-time buyer routes are things like the Lifetime ISA, First Homes and Shared Ownership, while Help to Buy ISA remains a legacy savings product for existing account holders.
Buying Plan
This sequence helps keep deposit planning, lender paperwork and scheme timing in the right order.
A workable first-time buyer budget often starts with a 5% deposit plan, then adds stamp duty where it applies, legal costs, surveys and moving costs before deciding which price range is realistic.
A mortgage in principle is a written estimate of what a lender may be willing to lend before full underwriting. It can help with estate agents and sellers, but it is not a binding offer and the lender may use either a soft or a hard search.
Once a seller accepts the offer, the lender moves from an estimate to a full application. At that point the property, your income, deposit, spending and credit history all get more detailed attention.
If you are relying on a Lifetime ISA or a legacy Help to Buy ISA, make sure your conveyancer has the right account details and timing. A Lifetime ISA must have been open for at least 12 months before a penalty-free first-home withdrawal, and Help to Buy ISA bonuses are claimed through the conveyancer.
Schemes
Keep current first-time buyer routes separate from older schemes so you do not waste time on paths that are no longer open to new applicants.
| Route | What it helps with | Key rule to remember |
|---|---|---|
| Lifetime ISA | Build a deposit with a 25% government bonus on contributions. | You can pay in up to £4,000 a year, receive a bonus of up to £1,000 a year, and use it for a qualifying first-home purchase once the account has been open for at least 12 months. The property price limit is £450,000. |
| First Homes | Buy a qualifying new-build home in England at a discount. | The discount is at least 30%. Household income must be no more than £80,000 outside London or £90,000 in London, and local areas can add their own local-connection or priority rules. |
| Shared Ownership | Buy a share of a home and pay rent on the remaining share. | This remains a live affordable home ownership route, but the exact share, rent, lease and staircasing rules depend on the provider, scheme and nation. |
| Help to Buy ISA | Legacy deposit savings route for people who already opened an account. | New accounts are closed, but existing savers can keep paying in until November 2029 and claim the bonus through a conveyancer until November 2030. |
| Help to Buy: Equity Loan | Legacy scheme only for existing borrowers, not a current entry route. | The England scheme closed to new applications on 31 October 2022. Final legal completions were due by 31 March 2023, with limited extensions in some cases up to 31 May 2023. |
Costs and Paperwork
The deposit gets most of the attention, but purchases often slow down because buyers underestimate side costs, miss scheme timing rules or confuse an estimate with a final offer.
Buying costs go beyond the deposit. Legal fees, surveys, removals and mortgage-related costs can all affect whether the plan still works once an offer is accepted.
Some lenders use a soft search for an Agreement in Principle and others use a hard search, so it is worth checking which type of search will be used before you apply.
A straightforward mortgage offer often takes around two to four weeks after a full application. Buyers who gather income, deposit and ID paperwork early are usually in a stronger position once the property is agreed.
If you hold both a Lifetime ISA and a Help to Buy ISA, only one government bonus can be used towards the same purchase. That choice needs to be made deliberately before exchange.
Next Tools
Once the basic rules and paperwork are clear, these tools help you move from reading into practical planning.
Turn your income and deposit into a planning range before you commit to viewings and offers.
Add legal fees, surveys and buying costs so the budget is not built on deposit alone.
Check whether first-time buyer relief applies and what the current SDLT bill would be.
Project the bonus route if you are still building the deposit rather than buying immediately.
Many first-time buyers start by testing whether they can reach at least a 5% deposit. A larger deposit can open up more mortgage choices and can improve pricing.
Usually, yes. An Agreement in Principle can help show sellers you are organised, but it is still a written estimate rather than a final mortgage offer.
Sometimes. Some lenders use a soft search and others use a hard search, so it is worth checking the type of search before you apply.
In England and Northern Ireland, first-time buyers pay 0% SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000, provided the purchase price is £500,000 or less.
No. You can hold both if you are eligible, but you can only use the government bonus from one of them towards the same purchase.
A straightforward case often takes around two to four weeks after a full application, though more complex cases can take longer.