Getting Started: Your Journey to Homeownership
Buying your first home is one of life's biggest milestones and financial decisions. This comprehensive guide will walk you through every step of the process, from initial planning to getting your keys. With proper preparation and understanding, you can navigate the UK property market with confidence.
2025 First-Time Buyer Snapshot
Average first-time buyer age: 31 years | Average deposit: £62,470 (18% of property value) | Average property price for first-time buyers: £224,943 | Time from decision to completion: 6-9 months
Phase 1: Financial Preparation (3-18 months)
Assess Your Financial Position
Before you start house hunting, you need a clear picture of your finances:
Calculate Your Budget
Determine how much you can afford based on income, expenses, and existing commitments. Use the 4.5x salary rule as a starting point.
Check Your Credit Score
Obtain credit reports from Experian, Equifax, and TransUnion. Address any errors and work on improving your score.
Save Your Deposit
Aim for at least 10% deposit for better mortgage rates. Consider government schemes like Lifetime ISA for bonus savings.
Budget for Additional Costs
Property purchase involves significant extra costs: solicitor fees, surveys, stamp duty, and moving expenses.
Government Schemes for First-Time Buyers
| Scheme | Max Property Value | Min Deposit | Key Benefits |
|---|---|---|---|
| Lifetime ISA | £450,000 | 5% | 25% government bonus on savings |
| Shared Ownership | Varies by region | 5-10% | Buy 25-75% share, rent remainder |
| 95% Guarantee | £600,000 | 5% | Government-backed high LTV lending |
| Right to Buy | N/A | Varies | Discount on council property |
Phase 2: Mortgage Preparation (1-3 months)
Understanding Mortgage Types
Choose the right mortgage type for your circumstances:
- Fixed Rate (2-10 years): Interest rate stays the same - ideal for budget certainty
- Variable Rate: Rate can change - potentially lower costs but less predictable
- Tracker: Follows Bank of England base rate - moves up and down with market
- Discount: Reduced rate below lender's standard variable rate for set period
Getting a Mortgage Agreement in Principle
Before house hunting, obtain an Agreement in Principle (AiP) or Decision in Principle:
AiP Application Process
Gather Documents
Payslips (3 months), bank statements (3-6 months), ID, proof of address, and credit commitments details.
Shop Around
Compare lenders directly or use a mortgage broker. Consider both high street banks and specialist lenders.
Receive AiP
Valid for 60-90 days, shows sellers you're a serious buyer with confirmed borrowing capacity.
Phase 3: Property Search (2-6 months)
Defining Your Search Criteria
Create a clear property wish list to focus your search:
- Location priorities: Commute, schools, amenities, future development plans
- Property type: Flat, house, new-build vs. period property
- Essential vs. desirable features: Bedrooms, parking, garden, storage
- Budget flexibility: Maximum price including renovation costs
Property Hunting Strategies
Online Portals
Rightmove, Zoopla, and OnTheMarket for comprehensive listings. Set up alerts for new properties.
Local Estate Agents
Register with 3-5 agents in target areas. They often know about properties before online listing.
Direct Approaches
Contact developers for new-builds, explore auction properties, and network with local contacts.
Property Viewings
Book viewings promptly in competitive markets. Prepare questions and take notes/photos.
Viewing Checklist
Check: Water pressure, heating system, mobile signal, storage space, noise levels, natural light, parking availability, and local transport links. Don't forget to view at different times of day and week.
Phase 4: Making an Offer (1-4 weeks)
Researching Property Values
Before making an offer, research comparable sales:
- Recent sales: Check Land Registry for similar properties sold in last 6 months
- Current market conditions: Buyer's vs. seller's market affects negotiation power
- Property condition: Factor in renovation costs and structural issues
- Unique selling points: Location, features, or potential that add value
Offer Strategy
Making Your Offer
Calculate Your Offer
Consider asking price, market value, your budget, and any required works. Start 5-10% below asking in normal markets.
Submit Through Agent
Include offer amount, proposed completion date, and any conditions (subject to survey, mortgage approval).
Negotiation
Be prepared for counter-offers. Stay within your budget and consider non-price factors like flexible timing.
Offer Acceptance
Once accepted, you're "under offer" but not legally committed until exchange of contracts.
Calculate Your Mortgage Payments
Use our mortgage calculators to understand what your monthly payments would be for different scenarios.
Try Our CalculatorsPhase 5: Legal Process (6-12 weeks)
Appointing a Solicitor
Choose a qualified conveyancing solicitor or licensed conveyancer:
- Get quotes: Fees typically £800-£1,500 plus disbursements (£300-£500)
- Check credentials: SRA regulated solicitors or CLC licensed conveyancers
- Local knowledge: Familiar with your area and potential issues
- Communication style: Regular updates and accessible when needed
Property Surveys
| Survey Type | Cost | Suitable For | What's Included |
|---|---|---|---|
| Basic Valuation | £150-£400 | New builds, good condition | Lender requirement only |
| Homebuyer Report | £400-£900 | Most modern properties | Condition overview, major defects |
| Building Survey | £600-£1,500 | Older/unusual properties | Comprehensive condition report |
The Legal Process Timeline
From Offer to Exchange
Weeks 1-2: Initial Steps
Instruct solicitor, arrange survey, submit full mortgage application, and begin property searches.
Weeks 3-6: Investigations
Mortgage valuation, property searches (local authority, environmental, water), and contract review.
Weeks 7-10: Final Checks
Mortgage offer received, final contract negotiations, and preparation for exchange.
Weeks 11-12: Exchange & Completion
Exchange contracts (legally binding), final mortgage arrangements, and completion day.
Phase 6: Completion and Moving
Final Preparations
In the weeks leading up to completion:
- Building insurance: Arrange from exchange of contracts (mandatory)
- Life insurance: Consider mortgage protection policies
- Utilities setup: Transfer or set up gas, electricity, water, broadband
- Moving arrangements: Book removal company or van hire
- Address changes: Notify banks, employers, DVLA, electoral roll
Completion Day
Final Walkthrough
Check property condition matches contract, all fixtures included, and any repairs completed.
Money Transfer
Your solicitor transfers purchase funds to seller's solicitor, including mortgage advance and your deposit.
Key Collection
Once funds clear (usually afternoon), collect keys from estate agent and take possession.
Post-Completion
Register ownership with Land Registry, set up mortgage payments, and celebrate your new home!
First Month Priorities
Essential tasks: Register for council tax, update address with all providers, locate stopcock and electrical meter, test smoke alarms, and keep all purchase documents safe for future reference.
Common First-Time Buyer Mistakes
Financial Mistakes
- Borrowing maximum amount: Leave buffer for repairs, furnishing, and rate rises
- Ignoring total costs: Factor in all purchase costs, not just property price
- Poor credit preparation: Check and improve credit score 6+ months before applying
- Inadequate emergency fund: Keep 3-6 months expenses after purchase
Property Selection Mistakes
- Emotional decisions: Don't fall in love with first property or pay over budget
- Ignoring location fundamentals: Schools, transport, amenities affect long-term value
- Skipping professional surveys: Save thousands by identifying issues early
- Overlooking resale potential: Consider future saleability even as first home
Process Mistakes
- Choosing cheapest professionals: False economy with solicitors and surveyors
- Poor communication: Stay in regular contact with all parties
- Rushing decisions: Take time for due diligence on major purchase
- Inadequate insurance: Arrange building insurance from exchange date
Expert Tips for Success
Preparation Phase
- Start saving early and automatically transfer to separate deposit account
- Consider higher deposit for better rates and lower monthly payments
- Get Agreement in Principle before viewing to show you're serious buyer
- Research areas thoroughly, including future development plans
Buying Phase
- Don't be afraid to walk away if survey reveals major issues
- Negotiate on price but also consider completion timing flexibility
- Build good relationships with estate agents for early property knowledge
- Keep detailed records of all communications and decisions
Long-term Success
- Consider overpaying mortgage when possible to reduce total interest
- Review mortgage rates annually and consider remortgaging
- Maintain property well to preserve and increase value
- Build equity for future property ladder moves
Remember
Buying your first home is a significant achievement that requires patience, preparation, and persistence. Don't rush the process, seek professional advice when needed, and remember that the "perfect" property often doesn't exist – focus on properties that meet your essential needs and budget.