First time buyer guide

Planning to buy your first home? Whether you're renting or living at home, the first time buyer process can feel overwhelming - there's so much to consider, and it's all completely new.

This complete first time buyer guide covers everything from mortgage approval to getting your keys. We'll walk you through the entire conveyancing process, which typically takes 8-12 weeks.

Inside, you'll discover the financial preparation and first time buyer costs you need to know about, what help is available for those taking their first step onto the property ladder, the unique advantages you have as a first-time buyer, and the common mistakes to avoid.

It's a financial and emotional investment that needs careful guidance!

One-off costs beyond your deposit

Don't forget these additional first time buyer costs beyond the purchase price:

• Conveyancing fees: £800-1,500
• Building survey: £400-800
• Buildings insurance: from £200/year
• Moving costs: £300-1,200
• Searches and disbursements: £300-500

Factor in at least £3,000-5,000 for these expenses so you don't stretch yourself to the maximum loan amount.

Saving your first time buyer deposit

There's no hard rule for how much desposit you need to buy a house - it depends on your earnings, credit rating and whether family will help. Lenders typically look for around 10% deposit, though 5% minimum is possible. The more you put down, the better your loan terms and the more mortgage options you'll have.

Using a Lifetime ISA

The Lifetime ISA gives you a 25% government bonus (up to £1,000 yearly) on savings for your first home under £450,000. You must hold it for 12 months before using it, so start early.

Bank of Mum and Dad

Family help and having a gifted deposit is increasingly common. If family are gifting money, they'll need to sign a declaration confirming it's a gift, not a loan. Lenders will check the source of funds for anti-money laundering purposes.

Getting your mortgage in principle

Before viewing properties, you need mortgage approval first. Without it, you might offer on a property only to have your borrowing refused - a common first-time buyer mistake.

A Mortgage in Principle (MIP) - also called Decision in Principle or Agreement in Principle - is a written statement showing how much a lender will potentially lend you. It's based on your declared finances and a soft credit check that won't impact your credit score.

The MIP process

1. Contact your chosen lender or broker
2. Provide employment details, income and monthly outgoings
3. Undergo a soft credit check
4. Receive your MIP certificate (usually within 24-48 hours)

This gives you a realistic budget and shows estate agents you're a serious buyer. Without it, many won't even book viewings. MIPs typically last 30-90 days.

Understanding your first time buyer benefits

First time buyer stamp duty relief

One major advantage is Stamp Duty Land Tax (SDLT) relief, saving you thousands. You pay £0 on properties up to £300,000, and only 5% on the portion between £300,001-£500,000.

Example: On a £450,000 property, you'll pay £7,500 instead of £17,500 - saving £10,000.

Your conveyancing solicitor handles SDLT payment at completion. You're eligible if you (and anyone buying with you) have never owned property anywhere in the world. See stamp duty thresholds.

Government schemes

Beyond stamp duty relief, several schemes help first-time buyers:

• First Homes: 30-50% discount on new builds (England only)
• Shared Ownership: Buy 25-75% and rent the rest
• Lifetime ISA: 25% bonus on savings (max £1,000/year)

Each scheme has specific criteria and restrictions, but many first-time buyers qualify for multiple programmes.

Freehold vs leasehold explained

As a first-time buyer searching for property, you'll need to understand the difference between freehold and leasehold.

With freehold, you own both the building and land permanently. You control the property (within planning permissions), pay only for maintenance you choose, and the value typically increases over time. Most houses are freehold, making them straightforward investments for first-time buyers.

Leasehold is different - you own the property for a fixed term but not the land. You'll pay ground rent and service charges on top of your mortgage, need the freeholder's permission for changes, and must watch that lease length carefully. Anything under 80 years affects both value and your ability to get a mortgage. Most flats are leasehold, which explains why they're often cheaper than houses.

Key leasehold questions to ask

Before committing to a leasehold, find out:

• What's the remaining lease length?
• What are the ground rent and service charges?
• What do service charges cover?
• Can you make alterations, keep pets or run a business from home?
• Who manages the building and handles insurance?

Understanding these details prevents nasty surprises later.

New build vs existing property

First-time buyers often lean towards new builds, especially with schemes like First Homes available. New builds are energy efficient, meaning lower bills, and you'll have a blank canvas to make your own. Plus, many first time buyer schemes specifically target new build properties.

New build challenges

Construction delays are frustratingly common - that "move in by Christmas" promise might stretch to Easter. Rooms tend to be smaller than period properties, and you'll likely deal with "snagging" issues that need fixing after moving in. There's also limited room for pricing negotiation.

Existing property advantages

Existing properties often feature more character, larger rooms and have a proven track record of value growth. There's usually room to negotiate on price, and you can move in immediately without waiting for construction to finish.

Whichever route you choose, get a proper survey - yes, even on new builds. The new build conveyancing process can be more complex, so always use your own solicitor, not the developer's.

House viewings and red flags

When viewing properties, look beyond the décor and fresh paint. Some things need your immediate attention.

What to check during viewings

• Damp, mould or musty smells
• Window and door condition (especially rotting timber)
• Boiler age and heating system
• Visible wiring issues
• Cracks in walls or ceilings
• Roof condition and guttering

Don't be shy about asking questions. Find out why the seller is moving and how long the property's been on the market. If it's been sitting for months in a hot market, there's usually a reason. Ask about previous offers and why they weren't accepted - this intelligence helps with your own offer strategy.

Avoid common viewing mistakes

Common first-time buyer mistakes include ignoring major problems while obsessing over ugly wallpaper, or falling in love with fresh decoration that might hide serious issues. Always view properties at least twice, ideally at different times - a quiet Sunday won't reveal weekday traffic or neighbour noise.

Keep your cards close during viewings. Don't reveal your budget or gush about how perfect everything is - save that for later. Research the area properly through council websites and local crime statistics. Knowledge is power in negotiations.

Understanding property chains

A property chain links all the buyers and sellers in connected transactions, where each sale depends on the others completing. Think of it as a line of dominoes - if one falls, they all fall.

Your chain-free advantage

Your first-time buyer advantage is huge here. You have no property to sell, making you "chain-free" below. Sellers love this because there's no risk of your sale falling through, unlike chains where 3 in 10 sales collapse. You're not waiting for someone to buy your place before you can proceed.

This strengthens your negotiating position significantly. When making an offer, always emphasise your chain-free status - sellers often accept lower offers from reliable first-time buyers rather than risk a lengthy chain collapsing after months of waiting.

Maximising your advantage

To maximise this advantage, ask estate agents specifically about chain-free properties. These include probate sales (where the owner has passed away), landlords selling investments or repossessions. A chain-free seller combined with a chain-free buyer (you) means the smoothest possible transaction.

Remember: your position at the chain's start makes you the strongest link. Use this leverage wisely. Understanding conveyancing timelines helps you plan around any chains above you.

Your offer strategy: Start 5-10% below asking price in normal markets - sellers expect negotiation. Consider the seller's situation: probate sale? Been on the market for months? These strengthen your position for a lower offer.

Your chain-free status is gold. Always emphasise this advantage, along with your mortgage in principle, to show you're a serious buyer. Never reveal your maximum budget during viewings or show excessive enthusiasm.

Get everything in writing: the agreed price, what's included, and your position as a chain-free first-time buyer with mortgage approval.

What happens after your offer is accepted - first 48 hours

Offer accepted? Great! But don't celebrate yet - you need to move fast. The first week sets the tone for your entire purchase, and until contracts are exchanged, sellers can still accept other offers (gazumping).

Day 1: Instruct your solicitor immediately

The moment your offer's accepted, instruct your conveyancing solicitor. Searches take 2-4 weeks minimum, sometimes longer for complex properties. Delaying now means delaying your moving date. At Homeward Legal, we start searches the moment you instruct us.

Day 1-2: Finalise your mortgage

Your mortgage in principle was just the start. Now contact your lender for the full application. They'll need payslips, bank statements and ID - have everything ready to avoid delays.

Day 2-3: Book your survey

Don't skip this! Book a qualified chartered surveyor for a proper inspection - not just the lender's basic valuation. They'll check for damp, structural issues and provide a traffic light report (red = urgent, amber = monitor, green = fine). Learn which survey level is right for you. This £400-800 could save thousands or provide evidence to renegotiate if problems are found.

Why speed matters: Moving quickly shows sellers you're serious and committed. It reduces the chance of gazumping and builds seller confidence that you won't drop out. Remember, 3 in 10 sales fall through - don't give sellers a reason to doubt you. Learn more about what happens after your offer is accepted.

Choosing your conveyancing solicitor

Your conveyancer handles the complex legal process of transferring property ownership. While you could theoretically DIY, mortgage lenders require a qualified professional - and for good reason. Mistakes can cost thousands to fix later.

Solicitor vs licensed conveyancer?

Both are qualified for residential conveyancing:

• Solicitors: Broader legal training, can handle complications
• Licensed conveyancers: Property specialists focused on conveyancing

For straightforward first-time buyer purchases, either works perfectly. Learn more about the difference.

Key questions before choosing

• Accreditation: Are they CLC or SRA regulated? On your lender's panel?
• Costs: What's the full breakdown of fees? Typical disbursements?
• Timeline: What's their average for first-time buyers?
• Communication: Who handles your case? How do they update you?
• Protection: Do they offer No-completion No-fee?

Red flags to avoid

• Vague pricing or hidden fees buried in small print
• Pressure tactics or pushy sales approaches
• No specific first-time buyer experience
• Poor reviews from other FTBs
• Estate agent recommendations (they may receive referral fees)

Online vs local?

Service quality trumps location. Many online conveyancers offer superior service with better case tracking and communication than traditional high street firms.

Look for firms offering fixed legal fees and No-completion No-fee protection - these protect you from nasty surprises. Some, like Homeward Legal, also include SearchPlus protection to safeguard your searches if things don't work out.

With your solicitor instructed and survey booked, you're ready for the conveyancing process to begin. Next, we'll walk you through exactly what your solicitor does during those 8-12 weeks...

Conveyancing is the legal process that transfers property ownership from the seller to you. It's essential and can't be skipped - your mortgage lender requires a qualified solicitor to handle this complex legal work.

The typical timeline is 8-12 weeks, though this varies based on the property and any issues that arise. Your solicitor manages all the legal tasks while keeping you updated throughout.

The five key conveyancing stages explained

Below is a quick overview of what happens during each stage. For the complete step-by-step breakdown with detailed timelines, see our full conveyancing process guide.

Stage 1: Initial setup (weeks 1-2)

Your solicitor will:

• Carry out ID and anti-money-laundering checks for you and the seller

• Confirm the source of your deposit and record it for the lender

• Collect key documents such as proof of address, ID and bank statements

These checks confirm everyone's identity and funds before any money changes hands. If you're using a gifted deposit from family, your solicitor will verify this too.

Stage 2: Property searches (weeks 3-5)

Your solicitor orders several essential property searches to uncover potential issues:

• Local authority search - planning permissions, building regulations, road schemes, conservation status

• Environmental search - land contamination, flood risk, ground stability, radon gas

• Water and drainage search - connections to mains water and sewers

These typically take two to four weeks. If something concerning appears, your solicitor may recommend extra reports.

Stage 3: Survey and mortgage finalisation (weeks 3-6)

Once searches are underway, arrange your property survey and finalise your mortgage:

• Choose between a Condition Report, Homebuyer Report, or Full Building Survey

• The survey highlights structural issues before you're legally committed

• Meanwhile, your lender completes the full mortgage application

Skipping a proper survey is a common first-time buyer mistake - it can save hundreds now but cost thousands later.

Stage 4: Contract review and enquiries (weeks 4-8)

While surveys and mortgages progress, your solicitor reviews the draft contract and title deeds:

• Checking who legally owns the property

• Confirming any restrictions, rights of way, or covenants

• Raising enquiries on anything unclear

This back-and-forth continues until both parties are satisfied and the contract is ready.

Stage 5: Preparing for exchange (weeks 8-10)

Before contracts are exchanged, your solicitor will:

• Verify all searches and enquiries are complete

• Confirm your mortgage offer and lender details

• Agree a completion date with the seller

This is your last chance to withdraw without penalty. Once contracts exchange, the sale becomes legally binding.

Exchange of contracts is the moment your purchase becomes legally binding. Here's what happens:

• You and the seller sign identical contracts

• Your solicitors formally exchange the contracts

• You pay your deposit (typically 10% of the purchase price)

• A completion date is fixed in the diary

From this point, neither party can withdraw without consequences. You'd lose your deposit and face potential legal action. The seller faces the same penalties if they try to back out. This is why exchange of contracts marks the biggest milestone in your journey.

Buildings insurance is essential from exchange, not completion. Your lender requires proof before releasing funds. Budget £200-£400 per year depending on your property's size and condition. With contracts exchanged and insurance in place, the property is essentially yours.

What to do between exchange and getting your keys

The gap between exchange and completion is usually 1-2 weeks, though sometimes they happen on the same day. Essential tasks:

• Book your removals immediately - popular days fill fast

• Contact your utility providers to arrange transfers for your completion date

• Notify council tax of your completion date

• Update your address with your bank, DVLA, employer, and HMRC

• Start packing systematically and plan your first-night essentials

For the complete moving preparation checklist with detailed timings, see our essential first-time buyer moving guide.

Completion day - getting your keys

Completion day is when ownership officially transfers and you collect your keys. Your mortgage lender sends funds to your solicitor in the morning. Your solicitor combines this with your deposit and transfers the total to the seller's solicitor - usually by 1pm. Once the seller's solicitor confirms receipt, the estate agent releases your keys, typically around midday.

When you enter your property:

• Take meter readings for all utilities and photograph them as evidence

• Check the property's condition matches your expectations

• Verify all agreed fixtures and fittings are present

• Test that appliances work

Keep your completion statement, title deeds, warranties, and building regulations certificates somewhere safe. Congratulations - you're a homeowner! For everything you need to know about completion day, see our detailed guide.

After completion

Your solicitor handles several tasks automatically: paying any stamp duty owed to HMRC within 14 days, registering the property with Land Registry in your name, and registering your mortgage against the property.

You'll need to:

• Complete utility transfers using your meter readings

• Notify council tax you're now the owner (you pay from completion day)

• Register to vote at your new address

• Update your address everywhere

• Consider making a Will now you own property

You've completed your first-time buyer journey!

When buying your first home, there's much more to budget for than just the property price and deposit. Don't be tempted to overstretch yourself on your offer - these additional costs add up quickly.

Beyond your deposit, you'll need to budget for:

• Conveyancing and legal fees (£800-£1,500)
• Searches and disbursements (£300-£500)
• Property survey (£250-£1,500)
• Mortgage fees (£0-£2,000)
• Moving costs (£300-£1,200)
• Buildings insurance (£200-£400/year)

Remember that, as a first-time buyer, you pay £0 stamp duty on properties up to £300,000 - saving you up to £5,000.

As a guideline, budget 3-5% of the property price for all costs beyond your deposit.

For example, on a £250k property, you'd need a £25,000 deposit plus £7,500-£12,500 for fees - that's £32,500-£37,500 total cash required.

See the full breakdown of conveyancing fees.

Buying with a partner or friend

If you're considering buying a property with a friend, partner, or family member to spread the expense of your first home, you'll want to draw up a Deed of Trust. This legal document outlines the ownership proportions, how ownership is shared, and the arrangements for financial contributions.

There are two types of approach:

Joint Tenants:

• Equal ownership split (50/50)
• Right of survivorship - if one partner dies, the property automatically passes to the surviving owner
• Best for married couples, civil partners, or long-term committed relationships

Tenants in Common:

• Unequal shares possible (60/40, 70/30)
• No automatic inheritance - each owner can leave their share to anyone in their will
• Best for friends sharing the purchase, particularly when providing unequal deposits

The Deed of Trust becomes critical if you're unmarried, as it protects individual investments if the relationship ends. Learn more about joint tenants vs tenants in common.

Gifted deposits from family

The press have long since coined the phrase "Bank of Mum and Dad" to describe family helping young adults onto the property ladder, and it's now part of everyday property vocabulary.

When you begin the process of buying your first home with gifted money, there are clear legal requirements:

• The money must be a genuine gift rather than a loan
• The donor must provide a signed declaration letter confirming it's a gift
• Your solicitor will need proof of where the donor's funds came from
• All aspects will be verified thoroughly for anti-money laundering purposes

Tax implications to consider:

• Gifts up to £3,000 per year are free of inheritance tax
• Larger gifts may trigger inheritance tax if the donor dies within seven years
• However, you don't pay any tax when receiving the gift

Your conveyancing solicitor will verify all the documentation covering gifted deposits before you can proceed with the purchase.

Buying through government schemes

There are two schemes currently available to help first-time buyers, though be aware that both add 2-4 weeks to the average conveyancing timeline due to extra eligibility checks.

First Homes Scheme

• 30-50% discount on new builds (England only)
• Your household income must be under £80k per year (£90k in London)
• Additional checks required to confirm eligibility
• Restrictions apply when selling - you can only sell to another eligible buyer

Explore First Homes conveyancing

Shared Ownership

• Buy a 25-75% share while paying rent on the remainder to a housing association
• More complex legal checks extend the conveyancing timeline
• You can take advantage of "staircasing" to gradually buy greater shares over time

Learn about Shared Ownership

New build properties

With the government's determination to support first-time buyers purchasing new builds, there are specific considerations to keep in mind.

New builds require additional solicitor checks that add to the overall timeline:

• Review of the building contract documentation
• Verification of the NHBC (National House-Building Council) warranty
• Compliance with current building regulations
• Confirmation of road and services adoption
• Understanding estate management charges

Snagging inspection

Once the home has been built and you've registered your interest in buying it, you'll need a snagging inspection to identify any defects before completion. You can create the snag list yourself by inspecting thoroughly, but it's recommended to order an independent survey by a professional (£300-£500 depending on property size).

Timeline considerations

Construction delays are common with new builds - 3 to 6 month overruns are often experienced. However, the legal work can start before the build is completed, and you can sometimes exchange contracts months before the property construction is finished.

Here are the mistakes to watch out for and how to avoid them.

Mistakes you can control

Not getting a Mortgage in Principle first

Without this important document, you weaken your negotiating position and sellers won't take you seriously. Even worse, you might view properties that are completely unaffordable for your real budget.

• Solution: Get your Mortgage in Principle before you start house-hunting.

Underestimating total first time buyer costs

It's very easy to focus solely on saving your deposit while ignoring all the other homebuying costs. Running out of money midway through the process is a nightmare scenario.

• Solution: Beyond your deposit, budget an additional 3-5% of the asking price for all costs and fees.

Choosing the cheapest solicitor without research

If something looks too good to be true, it probably is. The cheap headline pricing might hide poor service, unexpected fees, or communication breakdowns - all of which cost far more to fix later.

• Solution: Read online reviews and choose based on service value over price. Homeward Legal offers fixed-fee conveyancing with a no-completion-no-fee guarantee, so you only pay if you successfully reach completion. If your transaction falls through, you won't pay for your next search and survey either.

Skipping the proper property survey

Thinking you'll save money by not getting a survey is false economy - a £500 survey could save £20,000 or more in repairs. Remember, the lender's valuation is for their purposes, not yours.

• Solution: Always order at least a Homebuyer Report.

Poor communication with your solicitor

You'll receive lots of documents and queries about your purchase. It's easy to think you'll respond later when you have more time, but delays give sellers doubt about your commitment.

• Solution: Stay proactive, respond quickly to your solicitor's queries, and keep communication flowing.

Forgetting to claim stamp duty relief

As a first-time buyer, you could save thousands through stamp duty relief. Missing out on available schemes is an expensive oversight.

• Solution: Confirm your eligibility for all available schemes with your solicitor as soon as you appoint them.

Things outside your control

Despite your best efforts, some issues are beyond your immediate control - but you can mitigate their impact.

Sales falling through

It's a sad fact that roughly 3 in 10 transactions fall through before completion due to survey issues, mortgage problems, chain breaks, or gazumping. Understanding what can go wrong between exchange and completion helps you prepare.

• Protection: Consider Homebuyers Protection Insurance. Homeward Legal's no-completion-no-fee guarantee means you won't pay solicitor fees if the transaction falls through.

Gazumping

The frustrating practice of sellers accepting a higher offer after accepting yours is unfortunately legal until you exchange contracts.

• Prevention: Move quickly with your preparations and request the property be taken off the market once your offer is accepted.

Property chain complications

Anyone in the chain can cause delays - the chain is only as strong as its weakest link.

• First-time buyer advantage: You're chain-free with no property to sell below you. However, you could still be affected by chains above you if the seller is part of one. Understanding conveyancing timelines helps you plan around potential delays.

Survey reveals major issues

Structural problems, damp, subsidence, or roof issues that aren't immediately obvious can give you pause.

• Options: Armed with the survey report, you can renegotiate the asking price to cover repairs, request the seller fixes issues before completion, or walk away if needed. You're not legally committed until contracts exchange.

How to protect yourself

Choose an experienced solicitor who specialises in first-time buyers - they'll guide you through potential pitfalls. Get a proper survey, understand any property chains involved, and move quickly once your offer is accepted. Building a good relationship with your seller helps too.

Most importantly, don't panic if issues arise - with the right support and knowledge, most problems can be resolved.

As a first-time buyer, you have significant advantages:

• Stamp duty savings - you can potentially save up to £15,000 on your purchase with the government relief scheme
• Access to first-time buyer schemes - whether it's First Homes, Shared Ownership or a Lifetime ISA, the help is there for you
• No chain below you - this makes you attractive to sellers and helps achieve a faster conveyancing process
• More options than ever - as a first-time buyer, you're well-supported

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