Buying your first home in the UK involves nine distinct stages: saving a deposit, getting a mortgage in principle, finding a property, making an offer, applying for your mortgage, instructing a solicitor, getting a survey, exchanging contracts, and completing. The process from offer accepted to completion takes 10–16 weeks. Beyond the deposit, total one-off costs are typically £3,500–£8,000 for properties under £300,000 (zero stamp duty) or £7,000–£18,000 if stamp duty applies. First-time buyers in England pay no stamp duty on the first £300,000.
The first-time buyer journey at a glance
The total journey from offer accepted to keys in hand averages 12–14 weeks in England and Wales for an uncomplicated purchase. Complications — a long chain, a slow search result, a problem on the survey, or a slow lender — can extend this to 20+ weeks. Scotland operates under a different legal system; the process is more streamlined, with offers on homes typically made after a closing date with less risk of fall-through.
The nine stages of buying your first home — in detail
The minimum deposit for a residential mortgage in the UK is 5% of the purchase price, though 10% is strongly recommended — it unlocks meaningfully better interest rates and is more common among accepted first-time buyer applications in practice. A Lifetime ISA (LISA) is the most tax-efficient savings vehicle specifically designed for a first home purchase: the government adds a 25% bonus on up to £4,000 per year (a maximum bonus of £1,000/year) for buyers purchasing with a mortgage on a property costing up to £450,000. The LISA must have been open for at least 12 months before you use it for a property purchase.
A common mistake is saving only for the deposit and being surprised by the additional costs on completion day. Beyond the deposit, budget for solicitor fees, a survey, the mortgage arrangement fee, and a float for immediate post-purchase costs. As a rule of thumb, hold an additional £5,000–£10,000 beyond the deposit for a property under £300,000.
| Minimum deposit (5% of purchase price) | £12,500 on a £250k property |
| Recommended deposit (10%) | £25,000 on a £250k property |
| Annual LISA government bonus (max) | £1,000/year on £4,000 saved |
| Additional costs buffer needed | £5,000–£10,000 |
| Total cash to target (10% deposit + costs) | ~£30,000–£35,000 on £250k |
A mortgage in principle — also called an agreement in principle (AIP) or decision in principle (DIP) — is a written indication from a lender of how much they would be willing to lend, based on a soft credit check and income information. It is not a commitment from either side. Most estate agents require evidence of a MIP before they will take an offer to a vendor seriously. Getting one online typically takes 15–30 minutes.
Use a whole-of-market broker rather than going direct to a single lender. A broker searches across dozens of lenders and identifies the best product for your specific income, deposit, and property type. One broker application avoids multiple hard credit searches. Broker fees are typically £0–£500 for residential purchases; many high-street and online brokers are fee-free (paid by lender commission).
Your MIP is typically valid for 60–90 days and can be renewed. Getting one before you start viewing means you know your exact budget and can move quickly once you find the right property.
With your MIP confirmed and budget clear, you can view properties with purpose. Register with all estate agents in your target area — both online (Rightmove, Zoopla) and local high street agents. New properties often go to registered buyers first before appearing on portals.
When making an offer, you are not legally committed to anything — no contract has been signed and either party can withdraw with no legal penalty until exchange of contracts. Offers in England and Wales are made verbally (then confirmed in writing) through the estate agent. In Scotland, offers are typically made through your solicitor after a closing date, and accepted offers are more binding.
It is normal to offer below the asking price for properties that have been listed for more than a few weeks, or where condition issues are visible. In competitive markets (popular areas, well-priced properties), sealed bids above asking price are common. Before offering, check recent sold prices on Rightmove and the Land Registry for comparable properties in the same street or postcode.
| Instruct your solicitor (same day or next day) | Delays here slow the whole chain |
| Apply for your full mortgage (within 48 hours) | Lender needs time for valuation |
| Book a survey (as soon as lender valuation confirmed) | Do not rely on the lender's valuation alone |
| Take the property off the market discussion | Ask agent to mark as SSTC (Sold Subject to Contract) |
A full mortgage application requires more documentation than the MIP stage. Have ready: three months' payslips, three months' bank statements, your last two P60s (or two years' accounts if self-employed), proof of deposit (savings statements or gift letter), proof of identity and address, and details of any existing credit commitments. Your broker handles the submission and liaises with the lender.
The lender will commission a valuation of the property — this is to confirm it is worth enough to secure the loan. It is not a survey. The valuation is either a physical inspection by a RICS surveyor or an automated valuation model (AVM) using comparable sold prices. A lender valuation is sometimes free as part of the mortgage deal.
Once the lender is satisfied with the valuation and your documentation, they issue a formal mortgage offer. This is a legally binding commitment from the lender to provide the mortgage on the stated terms, valid for three to six months. Your solicitor receives a copy directly. Do not commit to exchange without a formal offer in hand.
| Mortgage arrangement fee (if applicable) | £0–£1,499 (some fee-free products exist) |
| Mortgage valuation fee | £0–£500 (often free on competitive deals) |
| Broker fee (if charged) | £0–£500 |
Your solicitor handles all the legal work of the property purchase: reviewing the title, conducting local authority and environmental searches, raising enquiries with the seller's solicitor, drawing up the contract, and managing the transfer of funds on completion. In England and Wales, always use a solicitor or licensed conveyancer on the mortgage lender's approved panel — the lender will not proceed otherwise.
Get quotes from at least two to three firms before instructing. Costs vary significantly — from around £900 to £2,500 including VAT and disbursements (search fees, Land Registry fee). Online conveyancers are often cheaper but can be slower to respond; local solicitors cost more but tend to be more proactive. For a first-time buyer on a straightforward freehold purchase under £300,000, an online conveyancer is typically fine. For leasehold properties, older properties, or anything with a complex title, a proactive local solicitor is worth the premium.
| Solicitor legal fees (incl. VAT) | £900–£2,500 |
| Local authority search | £100–£350 (varies by council) |
| Water and drainage search | £30–£80 |
| Environmental search | £30–£80 |
| Land Registry fee (on completion) | £20–£500 (based on purchase price) |
| Electronic transfer fee (CHAPS) | £25–£50 |
| Total solicitor costs (approx.) | £1,500–£3,000 |
The lender's valuation is not a survey. It confirms value for lending purposes; it does not identify defects, damp, structural issues, or condition problems. A survey is separate, optional, and entirely for your benefit — but skipping it is one of the most common and costly mistakes first-time buyers make.
There are three RICS survey levels. Level 1 (Condition Report) is a basic traffic-light assessment — sufficient only for modern, standard properties in good condition. Level 2 (HomeBuyer Report) is the most common choice: a detailed inspection covering visible issues, damp, drainage, structural concerns, and advice on repairs — appropriate for most conventional houses built after 1900. Level 3 (Building Survey) is a comprehensive structural assessment covering all accessible areas — recommended for older properties (pre-1900), listed buildings, unusual construction types (timber frame, thatched roof), or any property showing visible condition concerns.
A survey may reveal issues that enable you to renegotiate the price or request that the seller carries out remedial work before exchange. The cost of a survey (£400–£900) is trivial relative to the cost of discovering structural problems after you own the property.
| Level 1 — Condition Report | £300–£500 |
| Level 2 — HomeBuyer Report | £400–£650 |
| Level 3 — Building Survey | £600–£1,200 |
Exchange is the moment the purchase becomes legally binding. Both buyer and seller sign identical contracts and their solicitors exchange them simultaneously. At this point you transfer the exchange deposit — typically 5–10% of the purchase price — to your solicitor, who transfers it to the seller's solicitor. This is separate from (and in addition to) the remaining balance transferred on completion day.
Before exchange, your solicitor should have: reviewed the title and raised all enquiries; received satisfactory replies to all searches; confirmed building insurance is in place from exchange date; and confirmed the formal mortgage offer is valid and sufficient. Do not agree to exchange without ticking all of these.
Immediately before exchange you agree a completion date — the date you will get the keys. This is a fixed, contractual date that both sides are bound to. Standard completion is one to four weeks after exchange. If you need to arrange removal logistics, furniture delivery, or overlap with a rental tenancy end date, the completion date is the lever to control.
Once exchanged, pulling out means forfeiting your exchange deposit. The seller pulling out means they can be sued for damages. Exchange is the point of genuine security in the English and Welsh property market.
On completion day your solicitor transfers the full purchase balance (the agreed price minus the exchange deposit you already paid) to the seller's solicitor. This transfer — known as a CHAPS payment — typically arrives before 2pm. Once received, the seller's solicitor authorises the estate agent to release the keys.
Your solicitor then registers you as the new owner at HM Land Registry and pays any outstanding stamp duty. This registration can take several weeks to appear on the register but your ownership is effective from completion day regardless.
Practical points for completion day: arrange buildings insurance to start from exchange (not completion), not from when you physically collect the keys; read the property's meters on arrival and register them with the utility providers; change the locks before sleeping in the property — you do not know how many people have copies of the existing keys.
Completion is not quite the end of the process. In the weeks after moving in: confirm your mortgage direct debit has been set up with the correct amount and start date; register with the local council for council tax (you are liable from completion day); register with utility providers and take meter readings; file your self-assessment tax return if you receive a bonus or have other untaxed income (ownership itself does not create a tax filing obligation); and store your completion documentation — title register, mortgage deed, and SDLT5 stamp duty confirmation — safely.
Complete cost summary — what a first-time buyer pays beyond the deposit
| Cost item | Typical range | Notes |
|---|---|---|
| Stamp duty (SDLT) | £0 (below £300k FTB) | 5% on portion from £300k–£500k; above £500k standard rates |
| Solicitor / conveyancing fees | £900–£2,500 | Includes searches, Land Registry, and disbursements |
| Mortgage arrangement fee | £0–£1,499 | Fee-free products exist; sometimes added to mortgage |
| Mortgage valuation fee | £0–£500 | Often free on competitive deals |
| Survey (Level 2 HomeBuyer Report) | £400–£650 | Strongly recommended; separate from lender valuation |
| Mortgage broker fee (if charged) | £0–£500 | Many brokers are fee-free (paid by lender) |
| Buildings insurance (first year) | £150–£400 | Must start from exchange date; required by lender |
| Removal costs | £300–£2,000 | Varies enormously by volume and distance |
| Initial repairs / decorating | £0–£10,000+ | Highly property-specific |
| Total (excl. deposit, stamp duty zero) | £3,500–£6,500 | For a property under £300k with no arrangement fee |
For properties above £300,000, stamp duty adds £7,500 (at £450k) to £10,000 (at £500k) for first-time buyers. Above £500,000, first-time buyer relief no longer applies. Use our stamp duty calculator for the exact figure on your purchase price.
First-time buyer profiles — what the numbers look like in practice
| Property | £180,000 (2-bed terrace) |
| Deposit (14.4%) | £26,000 |
| Mortgage | £154,000 at 4.2× income |
| Monthly payment (4.5%, 25yr) | £855/month |
| Stamp duty (FTB) | £0 |
| Total fees | ~£4,100 |
| Cash needed day one | ~£30,100 |
| Property | £385,000 (2-bed flat) |
| Deposit (13.5%) | £52,000 |
| Mortgage | £333,000 at 3.78× combined |
| Monthly payment (4.45%, 25yr) | £1,834/month |
| Stamp duty (FTB — 5% on £85k above £300k) | £4,250 |
| Total fees | ~£5,500 |
| Cash needed day one | ~£61,750 |
| Property | £460,000 (1-bed flat) |
| Deposit (18.5%) | £85,000 |
| Mortgage | £375,000 at 5.21× income |
| Monthly payment (4.4%, 25yr) | £2,060/month |
| Stamp duty (FTB — 5% on £160k above £300k) | £8,000 |
| Total fees | ~£6,800 |
| Cash needed day one | ~£99,800 |
First-time buyer stamp duty — what you pay at each price point
First-time buyers in England pay zero stamp duty on the first £300,000 of any purchase. Between £300,001 and £500,000 the rate is 5% on the portion above £300,000 only. Above £500,000 the FTB relief no longer applies and standard rates kick in on the full price.
| Purchase price | FTB stamp duty | Non-FTB stamp duty | FTB saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £425,000 | £6,250 | £11,250 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £550,000 | £17,500 (no relief) | £17,500 | £0 |
| £625,000 | £21,250 (no relief) | £21,250 | £0 |
| £700,000 | £25,000 (no relief) | £25,000 | £0 |
FTB stamp duty rates for England as of mid-2025. Scotland uses LBTT — different rates and thresholds apply. Wales uses LBTT — different thresholds apply. Use our stamp duty calculator for the exact figure.
Checklists — what to have ready at each key stage
- Mortgage in principle obtained
- Budget confirmed (deposit + fees total)
- Solicitor shortlisted and quoted
- Comparable sold prices checked on Rightmove
- Survey level decided based on property age/type
- Buildings insurance quotes obtained
- Full mortgage application submitted via broker
- Solicitor instructed and ID provided
- Survey booked (Level 2 or 3)
- Property marked SSTC by estate agent
- Document pack to solicitor (payslips, bank statements, etc.)
- Buildings insurance arranged from exchange date
- Formal mortgage offer received in writing
- Survey received and any issues resolved
- All searches returned satisfactorily
- Solicitor enquiries raised and answered
- Exchange deposit transferred to solicitor
- Completion date agreed with all parties
- Removal company booked
- Keys collected from estate agent
- Meter readings taken (gas, electricity, water)
- Utility providers contacted to register
- Council tax: register with local authority
- Locks changed
- Buildings insurance confirmed as active
- Mortgage direct debit start date confirmed
- Completion documents stored safely
Common first-time buyer myths — and the reality
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❌ "The lender's valuation means the property is in good condition"The lender's valuation confirms the property is worth enough to secure the loan. It does not check for damp, structural issues, roof condition, or anything else that affects liveability. You need a separate survey for this. Many buyers have paid full price for properties with £20,000–£50,000 of repairs because they relied on the valuation alone.
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❌ "Once my offer is accepted, the sale is agreed"In England and Wales, nothing is legally binding until exchange of contracts. Either party can withdraw without financial penalty between offer acceptance and exchange. Gazumping (the seller accepting a higher offer from another buyer) remains possible right up to exchange. Move quickly on instructing your solicitor and applying for the mortgage — the longer the gap between offer and exchange, the higher the risk.
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❌ "I need a 20% deposit to get a good mortgage"A 10% deposit (90% LTV) is widely available and perfectly standard for first-time buyers. The rate is noticeably higher than at 85% or 80% LTV, but the difference is typically £80–£150/month — not insurmountable. Waiting years longer to save a 20% deposit has an opportunity cost too: you continue paying rent and miss years of potential house price appreciation and equity accumulation. 10% is a reasonable and common entry point.
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❌ "I should get the cheapest solicitor possible to save money"Conveyancing costs vary from £900 to £2,500. Choosing a £900 online conveyancer over a £1,800 local solicitor saves £900 on a purchase that might be £300,000 — a rounding error. The cost of a conveyancing failure, delayed exchange, or missed contractual issue is orders of magnitude larger than this saving. Get quotes from multiple firms and compare speed and responsiveness, not just price.
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❌ "A fixed rate is always better than a tracker"Fixed rates provide certainty — your payment does not change during the deal period regardless of Bank Rate movements. Tracker rates can be lower than fixed rates at any given moment and benefit you if base rate falls. Neither is universally better. In a period of expected rate falls (as many economists project for 2025–2026), a tracker could save money versus a two-year fix. The right choice depends on your risk tolerance, financial resilience, and the current rate gap between fixed and tracker products. See our fixed vs tracker guide.
Frequently asked questions
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How long does it take to buy a house as a first-time buyer?From offer accepted to completion, the typical timeline is 10–16 weeks in England and Wales. Uncomplicated purchases in short chains complete at the lower end; long chains, slow solicitors, or complex searches push toward 16+ weeks. Scotland is typically faster. The total journey from starting to save to getting the keys is 1–5 years depending on how much deposit is needed and your savings rate.
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Do first-time buyers pay stamp duty?First-time buyers in England pay zero stamp duty on the first £300,000. On purchases between £300,001 and £500,000, 5% applies on the portion above £300,000 only. Above £500,000 FTB relief no longer applies. On a £350,000 first home in England, you pay £2,500 in stamp duty — still saving £5,000 versus a home mover's £7,500 on the same purchase.
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What is a mortgage in principle and do I need one?A mortgage in principle (MIP) is a written indication from a lender of how much they would be willing to lend based on basic income and credit information. It is not a binding commitment. Most estate agents require one before taking your offer seriously. Getting a MIP takes 15–30 minutes online, is free, and involves no obligation. Do it before you start viewing properties so you know your exact budget and can move quickly.
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What is the difference between exchange and completion?Exchange is when the purchase becomes legally binding — both parties sign contracts and the buyer pays the exchange deposit (5–10% of purchase price). Neither party can withdraw without financial penalty after exchange. Completion is when the remaining balance is transferred, the seller vacates, and the buyer receives the keys — typically one to four weeks after exchange.
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Should I get a survey when buying my first home?Yes. The lender's valuation is not a survey — it only confirms value for lending purposes. A Level 2 HomeBuyer Report (£400–£650) identifies visible defects, damp, structural concerns, and condition issues. A Level 3 Building Survey (£600–£1,200) provides a full structural assessment — recommended for pre-1900 properties or anything showing visible condition issues. Skipping a survey to save £400–£600 is a false economy on a £200,000–£500,000 purchase.
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