Getting Started: Are You Ready to Buy?
Buying your first home is one of the most exciting — and significant — financial decisions of your life. The process involves multiple parties, complex legal requirements, and a substantial financial commitment. Being well-prepared before you start searching for properties makes everything smoother and reduces the risk of disappointment.
This guide walks you through every stage of the first-time buyer journey — from saving your deposit to picking up the keys on completion day.
Saving Your Deposit
Your deposit is the foundation of your home purchase. The minimum deposit for most residential mortgages is 5% of the purchase price, though many lenders prefer 10% or more — and a larger deposit will typically give you access to better mortgage rates.
Tools available to help first-time buyers save:
- Lifetime ISA (LISA): Save up to £4,000 per year and receive a 25% government bonus (up to £1,000 per year). The funds can be used towards the purchase of your first property (valued up to £450,000). Note: you must be aged 18–39 to open a LISA, and there are penalties for withdrawal for other purposes.
- Help to Save: For those on Universal Credit or Working Tax Credit, the Help to Save scheme provides a government bonus of 50p for every £1 saved.
- Joint Buyer arrangements: Purchasing with a partner, friend, or family member increases your combined deposit and borrowing power.
- Bank of Mum and Dad: Gifted deposits from family members are widely accepted by mortgage lenders, provided they are properly documented as non-repayable gifts.
Getting a Mortgage in Principle
Before you start viewing properties in earnest, it is advisable to obtain a mortgage in principle (also called an agreement in principle, or AIP). This is a provisional confirmation from a mortgage lender that they would be willing to lend you a specified amount, subject to full underwriting and property valuation.
Benefits of getting an AIP:
- Shows estate agents and sellers that you are a serious, proceedable buyer
- Helps you identify your realistic maximum purchase budget
- Speeds up the formal mortgage application once your offer is accepted
The amount lenders will typically lend is based on a multiple of your annual income — usually between 4.5x and 5x your gross salary. Lenders also carry out affordability assessments to ensure you could continue to afford the mortgage if interest rates were to rise.
Costs to Budget For
Beyond the deposit itself, first-time buyers need to budget for a range of additional costs:
| Cost | Typical Amount | Notes |
|---|---|---|
| Stamp Duty Land Tax | £0 – £10,000+ | 0% on first £425,000 for first-time buyers |
| Conveyancing (legal fees) | £800 – £1,500 | Includes disbursements; fixed fee via Legal Merchant |
| Survey | £300 – £1,200 | Depending on survey type; strongly recommended |
| Mortgage arrangement fee | £0 – £2,000 | Often added to mortgage; check total cost carefully |
| Mortgage broker fee | £0 – £500 | Many brokers offer free advice |
| Removals | £300 – £2,000+ | Depending on volume and distance |
| Buildings insurance | £150 – £400/year | Required from exchange onwards |
Finding the Right Property
With your AIP in hand and your budget clear, you can begin viewing properties in earnest. Useful tips:
- Use multiple property portals (Rightmove, Zoopla, OnTheMarket) to maximise coverage
- Register with local estate agents — many properties sell before they appear online
- Be clear on your non-negotiables vs. nice-to-haves before viewing
- Visit properties at different times of day to get a full picture
- Don't neglect the surrounding area — transport links, schools, and amenities matter
Making an Offer
Making an offer on a property in England is not legally binding — either party can withdraw at any point before exchange of contracts. Offers are typically made through the estate agent, who relays them to the seller.
Tips for making a successful offer:
- Research comparable sold prices in the area to calibrate your offer
- Make clear that you are a first-time buyer with no chain — this is a strong selling point
- If your offer is accepted, act immediately to instruct your solicitor
Instructing Your Conveyancing Solicitor
Once your offer is accepted, you should instruct your conveyancing solicitor without delay. At Legal Merchant, we match first-time buyers with an expert, competitively priced panel solicitor within two hours of receiving your quote request.
Your solicitor will guide you through the entire legal process — from reviewing the draft contract to handing over the keys on completion day. See our complete conveyancing process guide for a detailed breakdown of every stage.
Getting a Survey
A mortgage lender's valuation is not a survey — it simply confirms that the property is adequate security for the loan. For your own protection, we strongly recommend commissioning an independent survey:
- RICS Level 1 (Condition Report): Basic overview suitable for newer, standard properties
- RICS Level 2 (HomeBuyer Report): Most commonly instructed; identifies significant defects and provides a reinstatement cost estimate. Recommended for most first-time buyers.
- RICS Level 3 (Building Survey): Comprehensive; recommended for older properties, non-standard construction, or those requiring significant work
Exchange and Completion
Exchange of contracts makes the transaction legally binding. The completion date is typically 1–4 weeks after exchange, though it can be on the same day.
On completion day:
- Your solicitor transfers the purchase funds
- The seller's solicitor confirms receipt
- The estate agent releases the keys
- You are officially a homeowner!
