First-Time Buyer Guide 2026: Step by Step

Quick answer

Buying your first home in 2026 follows a well-worn path. In order:

1. Save your deposit (and boost it with a Lifetime ISA).
2. Check affordability and get a mortgage in principle.
3. Find a property and make an offer.
4. Instruct a conveyancing solicitor and apply for the mortgage.
5. Get a survey and let the lender value the property.
6. Exchange contracts (legally committed, deposit paid).
7. Complete — funds transfer, and you collect the keys.

This guide walks through each step with realistic 2026 numbers, the stamp duty relief you are entitled to, and the costs that catch first-time buyers out.

Step 1: Save the deposit (and use a LISA)

The deposit is the biggest hurdle. Lenders express it as loan-to-value (LTV) — a 10% deposit means a 90% LTV mortgage. The smaller your LTV, the cheaper your rate.

• 5% deposit (95% LTV): the minimum for most lenders. On a £250,000 home, that is £12,500.
• 10% deposit (90% LTV): noticeably better rates. That is £25,000 on the same home.
• 15%+ (85% LTV or lower): the best mainstream rates.

The Lifetime ISA is the single best deposit-boosting tool for under-40s. Contribute up to £4,000 a year and the government adds 25% — up to £1,000 free annually. It can be used for a first home worth up to £450,000 once the account has been open at least 12 months. A couple buying together can each use their own LISA, so two people could collect up to £2,000 of bonus a year. Model the growth with the

.

Step 2: Check affordability and get a mortgage in principle

Before you view a single home, work out what you can borrow. Lenders typically lend around 4 to 4.5 times income, subject to an affordability stress test on your spending and existing debts. On a £40,000 salary that is roughly £160,000-£180,000 of borrowing; add a 10% deposit and you are looking at homes around £180,000-£200,000. Check your figure with the

.

A mortgage in principle (also called a decision in principle or agreement in principle) is a lender's written indication of how much they would lend, based on a soft credit check. It does not commit you to a mortgage, but estate agents and sellers take your offer far more seriously when you have one. Get this before you start making offers.

It is worth understanding why lenders price by LTV. The deposit is their safety margin: if you default and they repossess, a larger deposit means they are more likely to recover the loan from a forced sale. That is why each 5% step in your deposit unlocks a cheaper rate — you are a lower risk. Over a 25-year mortgage, moving from a 90% to an 85% deal can save several thousand pounds in interest, which often dwarfs the extra deposit required. If you are close to a threshold, it is almost always worth finding the extra few thousand pounds.

Step 3: Find a property and make an offer

Once you know your budget, search within it, viewing several properties to calibrate. When you find the right one, make an offer through the estate agent — usually below asking price in a normal market. Offers are not legally binding in England and Wales until contracts are exchanged, so a deal can fall through ("gazumping") right up to exchange. In Scotland the process differs and offers are binding much earlier.

Once your offer is accepted, the property is marked "sold subject to contract" and the legal and financial machinery begins.

Step 4: Instruct a conveyancing solicitor and apply for the mortgage

Conveyancing is the legal transfer of property ownership. You instruct a solicitor or licensed conveyancer who will:

• Carry out searches (local authority, environmental, water and drainage, sometimes mining).
• Check the title and any restrictions, easements or leasehold terms.
• Raise enquiries with the seller's solicitor.
• Handle the transfer of funds and registration at the Land Registry.

Expect conveyancing fees of roughly £1,000-£1,800 including searches and Land Registry fees. At the same time, you submit your full mortgage application to your chosen lender, who will run a hard credit check and assess your documents (payslips, bank statements, ID).

Step 5: Get a survey and let the lender value the property

The lender will commission a mortgage valuation to confirm the property is worth what they are lending against — but this is for the lender, not for you, and it is superficial. You should commission your own survey:

• Level 2 HomeBuyer Report (£400-£700): suitable for most conventional, modern homes.
• Level 3 Building Survey (£600-£1,300+): for older, larger, unusual or visibly problematic properties.

Step 6: Exchange contracts

When searches are clear, the mortgage offer is issued and both sides are ready, your solicitor and the seller's solicitor exchange contracts. At this point:

• You are legally committed to the purchase.
• You pay your deposit (typically 10% of the price, though sometimes less if your mortgage deposit is smaller).
• A completion date is agreed.

Backing out after exchange means losing your deposit and potentially facing damages, so make sure everything — including buildings insurance from the exchange date — is in place.

Step 7: Complete and collect the keys

On the completion date, your solicitor sends the balance of funds (your remaining deposit plus the mortgage advance) to the seller's solicitor. Once received, the property is legally yours and the estate agent releases the keys. Your solicitor then:

• Pays any Stamp Duty Land Tax due (see below) within 14 days.
• Registers your ownership with the Land Registry.

Stamp duty for first-time buyers in 2026

In England and Northern Ireland, first-time buyer SDLT relief works like this:

So a first-time buyer paying £300,000 pays £0. At £400,000 they pay 5% on £100,000 = £5,000. At £550,000 the relief is lost entirely and standard rates apply. Scotland (LBTT) and Wales (LTT) have their own first-time-buyer rules and thresholds. Work out your exact bill with the

.

Putting the costs together

On a £250,000 first home with a 10% deposit in England:

Your monthly mortgage payment on the remaining £225,000 depends on the rate and term — estimate it with the

.

Mortgage types: fixed, tracker and the LTV ladder

Once your offer is accepted you must choose a mortgage product. The main decisions are:

• Fixed rate: your rate is locked for a set period (commonly 2 or 5 years). Payments are predictable, but you pay an early repayment charge if you leave early. Most first-time buyers prefer the certainty of a fix.
• Tracker / variable: the rate moves with the Bank of England base rate. Cheaper if rates fall, more expensive if they rise.
• The LTV ladder: rates step down at 90%, 85%, 80% and 75% loan-to-value. Pushing your deposit just over one of these thresholds — say from 89% to a 90% deposit — can drop your rate noticeably. It is worth scraping together the extra few thousand if it moves you into a better band.

Also weigh the arrangement fee against the rate: a low-rate deal with a £1,500 fee can cost more overall than a slightly higher rate with no fee on a smaller loan. Run both scenarios through the

before deciding.

Boosting your chances of approval

Lenders assess affordability and credit history closely. Before applying:

• Check your credit file with all three agencies and correct any errors.
• Register on the electoral roll at your current address — a quick credit-score win.
• Reduce existing debt and avoid new credit applications in the months before applying; outstanding loans and card balances reduce how much you can borrow.
• Show stable income — lenders prefer a settled employment history; recent job changes or probation periods can complicate matters.
• Avoid gambling transactions and unarranged overdrafts on the bank statements lenders will scrutinise.

Government-backed routes such as shared ownership (buying a share of a home and paying rent on the rest) and the mortgage guarantee scheme (supporting 95% mortgages) can help where a full deposit is out of reach. See our guide on Help to Buy alternatives for first-time buyers.

Leasehold vs freehold: check before you fall in love

Flats are usually leasehold, meaning you own the property for a fixed term but not the land, and pay ground rent and service charges to a freeholder or management company. Houses are usually freehold. Before offering on a leasehold property, ask:

• How many years remain on the lease? Below 80 years, extension becomes expensive and lenders get nervous.
• What are the annual service charges and ground rent, and how fast have they risen?
• Are there any major works planned that could trigger a large bill?

Your conveyancer will report on all of this, but knowing the questions early saves wasted survey and legal fees on a property with hidden ongoing costs.

A realistic timeline

From offer accepted to completion, expect 8-12 weeks in a straightforward chain-free purchase, longer if there is a chain or leasehold complications. The slowest stages are usually searches and the seller's enquiries, so chase your solicitor regularly.

Final word

The path is predictable, but the costs beyond the deposit — conveyancing, survey, mortgage fees and moving — routinely add £3,000-£5,000, so budget for them from the start. Get your mortgage in principle before viewing, use a Lifetime ISA to supercharge your deposit, claim your SDLT relief, and never skip the survey. Run your own numbers through the

and the before you start viewing.

Completion day: what actually happens

Completion day itself is often an anticlimax of waiting by the phone. The sequence is:

1. Your solicitor requests the mortgage funds from your lender (usually the day before or the morning of completion).
2. Once funds arrive, your solicitor transfers the full purchase price to the seller's solicitor.
3. The seller's solicitor confirms receipt and authorises the estate agent to release the keys.
4. You collect the keys — often early afternoon, once the money has cleared down the chain.

Take meter readings, photograph the condition of the property, and check the seller has left everything agreed in the fixtures-and-fittings list. In the following days your solicitor pays any SDLT and registers you as the owner at the Land Registry.

The first month in your new home

Budget a buffer of £1,000-£2,000 for the first month: setting up utilities, council tax, contents insurance, and inevitable small purchases for a home that may lack curtains, white goods or basic furniture. New owners are frequently caught out by how quickly these add up on top of an already-stretched post-deposit balance.

Key numbers to remember

• Minimum deposit: 5% (10% for better rates).
• LISA bonus: 25%, up to £1,000 a year, for first homes up to £450,000.
• SDLT FTB relief (England/NI): £0 to £300,000, 5% to £500,000, none above.
• Borrowing: roughly 4-4.5× income, subject to affordability.
• Offer to completion: typically 8-12 weeks.
• Fees beyond deposit: £3,000-£5,000 (conveyancing, survey, mortgage, moving).

Get your mortgage in principle first, use a Lifetime ISA to boost your deposit, claim every penny of SDLT relief you are entitled to, and never skip the survey. Run your figures through the

, the and the before you start viewing.

This article is general information, not financial advice. Figures use 2026 UK rules; SDLT applies to England and Northern Ireland — Scotland (LBTT) and Wales (LTT) differ. CalcHub does not sell mortgages or take affiliate commission on regulated products.