Buying Your First Home UK

Conveyancing 8-16 Week Timeline

Conveyancing is the legal process of transferring property ownership. From offer accepted to completion, expect 8-16 weeks on a simple chain-free purchase, with leasehold flats and chains pushing to 4-6 months. Instruct a solicitor (or licensed conveyancer) the day your offer is accepted — they begin draft contract review, local authority and water/drainage searches and Land Registry checks immediately. Searches alone take 1-3 weeks depending on the council.

Weeks 4-10 cover enquiries: your solicitor raises questions on title, boundaries, planning history and any defects in the seller's Property Information Form (TA6) and Fixtures & Fittings form (TA10). Your lender simultaneously instructs a mortgage valuation, decides any conditions and issues the formal mortgage offer (typically week 4-6). Once you are satisfied with enquiries and have the mortgage offer, you sign the contract, transfer the deposit (usually 10%) to your solicitor and exchange contracts — the sale is now legally binding and a fixed completion date is set, typically 1-4 weeks after exchange.

Mortgage in Principle (MIP) vs Full Mortgage Offer

A Mortgage in Principle (MIP), also called Decision in Principle (DIP) or Agreement in Principle (AIP), is a soft indication from a lender of how much they would lend you. Based on a credit check and basic income disclosure, it takes 15-30 minutes online and is valid for 60-90 days. Estate agents in popular markets now expect to see an MIP before showing viewings, and accept offers more readily from buyers who already have one. The MIP itself is not binding on the lender.

The full mortgage offer comes after a complete application: payslips for 3 months, last 2 P60s, 3 months bank statements, deposit proof, photo ID and the property details. The lender values the property (desktop or physical) and underwrites your file. A binding offer is then issued, typically valid 3-6 months. Crucially, between MIP and full offer, any change in your finances — a credit card application, a job change, a missed payment — can reduce or withdraw the offer, so avoid new credit until completion.

RICS Survey Levels — Condition, HomeBuyer, Structural

The RICS Home Survey Standard defines three levels. Level 1 (Condition Report, £300-£500) is a basic visual traffic-light snapshot suitable for new-build and modern flats. It does NOT include a valuation. Level 2 (HomeBuyer Report, £450-£900) is the most common choice — it covers condition, identifies urgent or significant defects, and includes a market valuation and reinstatement value for buildings insurance. Suitable for conventionally built properties under 50 years old in reasonable condition.

Level 3 (Building Survey, also called Structural Survey, £600-£1,500+) is the most detailed and essential for older properties (pre-1930), listed buildings, properties with extensions, thatched roofs, timber-framed homes or anything showing visible defects. It gives detailed advice on repairs, ongoing maintenance and likely costs. The lender's mortgage valuation is NOT a survey — it only confirms the property is worth what they are lending against. Always commission your own RICS survey separately.

Help to Buy ISA Legacy Bonus + LISA Migration

The Help to Buy ISA closed to new applicants on 30 November 2019, but existing holders can keep saving until 30 November 2029 and claim the 25% government bonus on completion until 1 December 2030. Maximum monthly deposit £200 (£1,200 in the first month). Maximum bonus £3,000 on savings of £12,000. Property price cap £250,000 (£450,000 in London). The bonus is paid to your solicitor on completion — not towards your deposit at exchange, an important quirk.

The Lifetime ISA (LISA) replaced it and is open to UK residents aged 18-39. You can save up to £4,000 a year (counting towards the £20,000 overall ISA allowance) and receive a 25% government bonus on contributions — up to £1,000 per year, paid monthly. The bonus is available towards a first home up to £450,000 anywhere in the UK, or accessed from age 60 for retirement. Crucially the LISA bonus is paid to the conveyancer at exchange, so it can form part of your deposit, unlike the Help to Buy ISA. Many savers transfer Help to Buy ISA funds into a LISA to benefit from the higher allowance and earlier bonus payment.

Help to Buy Equity Loan — Closed but Historical Lookup

The Help to Buy Equity Loan scheme for new-build homes in England closed to new applications on 31 October 2022. Existing borrowers continue under their loan terms: 5 years interest-free, then a 1.75% annual interest charge from year 6 rising annually by RPI+1%. The loan typically covered 20% of the purchase price (40% in London), with the borrower putting down 5% deposit and a mortgage for the remaining 75%/55%.

The loan must be repaid in full when you sell, remortgage to remove Help to Buy, or after 25 years. Repayment is based on the current market value, not the original purchase price — so a rising market means a larger repayment. You can also make voluntary part-payments (minimum 10% of the loan) at any time via the Target HCA online portal, locking in the value at that point. Many borrowers are now redeeming as they approach the interest-charging years; check your statement and consider remortgaging onto a standard product if your equity is sufficient.

Joint Mortgage with Parent / Springboard Mortgage

Family-assisted mortgages let parents or close relatives use savings (not gifts) to help a first-time buyer borrow more. The Barclays Family Springboard is the most established: a parent deposits 10% of the property price into a linked Helpful Start savings account for 5 years, while the buyer takes a 100% mortgage. The deposit earns interest and is returned after 5 years if mortgage payments are kept up. The helper is not on the deeds, so they retain their own first-time buyer status for any future purchase.

Halifax Family Boost, Nationwide Helping Hand and Lloyds Lend a Hand offer similar structures with slight variations on the deposit lock-in period (typically 3-5 years) and product fees. Affordability is assessed only against the buyer's income, not the helper's — which makes these products particularly useful where the buyer has strong earnings but no deposit. Always weigh the helper's opportunity cost: the 10% deposit could otherwise be earning higher returns in a stocks & shares ISA over the lock-in period.

First Homes Scheme (England Only)

First Homes is an England-only scheme launched in 2021 offering newly built homes at a 30-50% discount to market value. The discount is set by the local planning authority and runs with the property in perpetuity — when you sell, the new buyer also gets the same percentage discount, keeping it affordable for future first-time buyers. Price cap is £250,000 AFTER the discount (£420,000 in London). Eligibility: first-time buyer, single or joint household income under £80,000 (£90,000 in London), and you must be able to obtain a mortgage for at least 50% of the discounted price.

Local councils can add further connection criteria — key worker priority, local residency requirements, armed forces. Available properties are listed on individual developer websites and gov.uk/first-homes-scheme. Take-up has been slower than originally projected because the perpetual discount means future capital growth is also discounted, but for buyers prioritising affordability over investment return it is one of the best schemes still active.

References

• gov.uk: First Homes scheme
• gov.uk: Help to Buy Equity Loan
• gov.uk: Lifetime ISA
• gov.uk: SDLT residential rates
• RICS: Home Survey Standard
• MoneyHelper: Buying a home