The Complete First-Time Buyer
Guide for 2026

Buying your first home is one of life's biggest financial milestones — and one of its most stressful. The process involves unfamiliar jargon, significant sums of money, and decisions that will affect your finances for decades. This guide walks you through every step, from saving your deposit to picking up the keys, with all the 2026 rates, schemes, and thresholds you need to know.

Step 1: Decide If You're Ready to Buy

Before diving into the deposit race, ask yourself these honest questions:

• Will you stay in the area for 5+ years? Buying and selling costs (stamp duty, solicitor fees, estate agent fees) mean you lose money on short holds
• Is your job stable? Mortgage commitments are 25+ years — lenders and your own peace of mind require income stability
• Do you have an emergency fund? Beyond your deposit, you should have 3–6 months of expenses saved for unexpected costs
• Have you used our Buy vs Rent Calculator? Run the numbers to confirm buying actually makes sense for your situation

Step 2: Save Your Deposit

How Much Do You Need?

The minimum deposit for most UK mortgages is 5% (95% LTV). However, a larger deposit unlocks significantly better mortgage rates:

The Lifetime ISA (LISA)

The Lifetime ISA is the single best savings vehicle for first-time buyers under 40:

• Save up to £4,000/year
• Government adds a 25% bonus (up to £1,000/year free money)
• Can be used for a first home worth up to £450,000
• Available as Cash LISA (safe, fixed return) or Stocks & Shares LISA (higher potential growth, more risk)
• You must hold the LISA for at least 12 months before using it for a property purchase

Other Deposit Boosters

• Regular savings accounts: Some offer 5–7% interest on monthly contributions (up to £250–500/month)
• Bank of Mum and Dad: Gifted deposits are accepted by most lenders with a signed gift letter
• First Homes scheme: Offers eligible first-time buyers at least 30% discount on new-build homes in England
• Shared Ownership: Buy a 25–75% share and pay rent on the remainder — much smaller deposit needed

Step 3: Get a Mortgage Agreement in Principle

Before house-hunting, get a Mortgage Agreement in Principle (AIP) — also called a Decision in Principle. This is a preliminary indication from a lender of how much they'd lend you. It's not a binding offer, but it shows sellers and estate agents you're a serious buyer.

For an AIP, lenders will typically check:

• Your income (employed/self-employed)
• Your monthly outgoings and committed expenditure
• Your credit score (a soft search, not a hard credit check)
• The deposit you have available

Use a whole-of-market mortgage broker rather than going directly to your bank. Brokers access deals from across the market and can often find rates not available direct. Many charge no fee to the buyer (they're paid by the lender).

Step 4: Understand Stamp Duty as a First-Time Buyer

First-time buyers get enhanced stamp duty relief in England/NI:

• £0 – £425,000: 0% stamp duty (completely exempt)
• £425,001 – £625,000: 5% on the amount above £425,000
• Above £625,000: Standard rates apply (no FTB relief)

This means a first-time buyer purchasing at £425,000 pays zero stamp duty. Use our Stamp Duty Calculator to see your exact liability.

Step 5: Find Your Property and Make an Offer

When you've found a property, making an offer is free and non-binding. Tips:

• Research comparable sold prices on Land Registry / Rightmove
• Time-on-market can indicate flexibility — properties listed for 3+ months may accept lower offers
• Don't reveal your maximum budget to the estate agent
• First-time buyers with no chain are attractive to sellers — use this as leverage

Step 6: Appoint a Solicitor/Conveyancer

Once your offer is accepted, you'll need a solicitor or licensed conveyancer to handle the legal transfer of ownership. They manage:

• Property searches (local authority, environmental, drainage, etc.)
• Title checks and review of contracts
• Mortgage offer processing
• Exchange of contracts and completion

Typical cost: £1,000–£3,000 including search fees and disbursements. Get 3 quotes and check reviews on Trustpilot.

Step 7: Get a Survey

Your mortgage lender will do a basic valuation — but this is for their benefit, not yours. You should commission your own survey to check for structural and condition issues:

Step 8: Exchange and Completion

Exchange of Contracts

This is the point of no return. When contracts are exchanged:

• You pay your deposit (usually 10% of the purchase price, though 5% may be negotiated)
• The completion date is set (usually 1–4 weeks later, but can be same-day)
• If you pull out after exchange, you lose your deposit

Completion Day

On completion day:

• Your solicitor sends the remaining funds to the seller's solicitor
• The seller's solicitor confirms receipt
• You get the keys!
• Your solicitor registers you as the new owner with the Land Registry
• Stamp duty is paid within 14 days (your solicitor handles this)

Step 9: Budget for Hidden Costs

Beyond the property price, budget for these often-overlooked expenses:

Rule of thumb: Budget an extra 3–5% of the purchase price for total transaction costs beyond the deposit.

Your Total Budget Checklist

For a £300,000 property as a first-time buyer with 10% deposit:

• Deposit: £30,000
• Stamp duty: £0 (FTB relief)
• Legal fees: ~£2,000
• Survey: ~£500
• Moving: ~£800
• Total cash needed: ~£33,300

Use our Mortgage Calculator to see what the monthly repayments would be on the remaining £270,000.