Property Guide · Updated April 2025
First-Time Buyer UK: Complete 2025 Guide
Buying your first home is one of the biggest financial decisions you'll make. This step-by-step guide covers everything: how much deposit you need, getting a mortgage, stamp duty relief, the Lifetime ISA, finding a property, the buying process, and the costs you'll face along the way.
The 10-Step Process
- 1
Save your deposit
Most lenders want at least 5% (better deals at 10–20%). Use a Lifetime ISA (£4k/year + 25% government bonus) or a Help to Buy ISA (closed to new accounts; existing holders only).
- 2
Check your credit score
Use Experian, Equifax or ClearScore. Fix any errors. Ensure you're on the electoral roll. Avoid new credit applications for 6 months before applying for a mortgage.
- 3
Work out what you can afford
Most UK lenders cap mortgages at 4–4.5× your annual income (joint income for couples). Use our affordability calculator. Factor in stamp duty, conveyancing fees, survey, moving costs.
- 4
Get a Decision in Principle (DIP)
Also called Mortgage in Principle (MIP). A statement from a lender saying they would, in principle, lend you up to a certain amount. Estate agents take you more seriously with one.
- 5
Make an offer
Once you find a property, make an offer through the estate agent. If accepted, the agent will mark it as Sold Subject to Contract (SSTC) and remove it from active listings.
- 6
Instruct a solicitor / conveyancer
They handle the legal work: searches, contracts, exchange and completion. Fixed-fee conveyancing is usually £1,000–£2,000 + disbursements (searches, Land Registry fees).
- 7
Apply for the mortgage
Full application with your chosen lender. They'll value the property and check your finances in detail. Takes 2–6 weeks typically.
- 8
Get a survey
The lender's valuation is for their benefit, not yours. Consider a HomeBuyer Report (£400+) for typical homes, or a Building Survey (£600+) for older or unusual properties.
- 9
Exchange contracts
You and the seller sign and swap signed contracts. At this point you pay the deposit (usually 10%) and the sale becomes legally binding.
- 10
Completion day
Mortgage funds are released to the seller via your solicitor. Keys are handed over. SDLT is filed and paid within 14 days. You move in!
How Much Deposit Do You Really Need?
Lenders quote Loan-to-Value (LTV) ratios. A 95% LTV mortgage = 5% deposit. The lower your LTV, the better rates you get. Typical 2025 rates:
| Deposit | LTV | Typical 2-yr fixed rate |
|---|---|---|
| 5% | 95% | ~5.2% |
| 10% | 90% | ~4.8% |
| 15% | 85% | ~4.5% |
| 25%+ | ≤75% | ~4.2% |
The Lifetime ISA: A First-Time Buyer's Best Friend
Open between ages 18–39, you can pay in £4,000 per tax year until age 50. The government adds a 25% bonus — up to £1,000 a year. Maximum potential government top-up over 32 years: £32,000.
Use the LISA to buy your first home worth up to £450,000 (England, Scotland, Wales, NI). Withdraw any other reason before 60 and you pay a 25% penalty — which on the bonus + interest effectively means losing about 6.25% of your own money.
All the Costs You'll Face
- Deposit (5–20% of property price)
- Stamp Duty (varies — see our guide)
- Mortgage arrangement fee: £0–£2,000
- Mortgage broker fee (if used): £0–£500
- Solicitor / conveyancer: £1,000–£2,000
- Searches (local authority, drainage, environmental): £250–£450
- Survey: £300–£1,000+
- Land Registry fee: £20–£500 depending on price
- Removal costs: £400–£1,500
- Buildings insurance: £150+/year