First-Time Buyer's Complete Guide: From Saving to Completion
Buying your first home is the largest financial decision most people will ever make. This guide walks through every stage: building a deposit, choosing the right savings account, understanding mortgages, stamp duty, and what actually happens on moving day.
Step 1: Work out how much you need
Your deposit is the percentage of the property price you pay upfront. Mortgage lenders lend the rest. Most first-time buyers aim for a minimum of 5%, though a larger deposit unlocks better mortgage rates.
| Deposit size | On a £250,000 home | What to expect |
|---|---|---|
| 5% | £12,500 | Higher mortgage rates, mortgage guarantee scheme may help |
| 10% | £25,000 | Better rates, most lenders available |
| 15–20% | £37,500–£50,000 | Strong position: access to competitive rates |
| 25%+ | £62,500+ | Best available rates, lowest monthly payments |
Don't forget upfront costs beyond the deposit: Stamp Duty Land Tax, legal fees (£1,500–£3,000), survey costs (£400–£1,500), and mortgage arrangement fees (often £500–£1,000). Budget an additional 3–5% of the property price for these.
Step 2: Choose the right savings account
Where you keep your deposit savings matters. Two government-backed accounts offer bonuses that can significantly boost your pot:
Lifetime ISA (LISA)
Best option for most first-time buyers under 40
- Save up to £4,000/year and receive a £1,000 government bonus
- Property must cost £450,000 or less
- Must be aged 18–39 to open; can contribute until 50
- 25% withdrawal penalty if not used for a first home or retirement
Help to Buy ISA
Existing holders only (closed to new accounts Nov 2019)
- £200/month max; maximum £3,000 bonus on £12,000 savings
- Property must cost £250,000 or less (£450,000 in London)
- Save until Nov 2029; claim bonus by Dec 2030
For most first-time buyers under 40 who don't already have a Help to Buy ISA, the Lifetime ISA is the better choice: it has a higher contribution limit, a higher property price limit, and the bonus goes straight into the account monthly rather than waiting until completion.
Step 3: Understand what you can borrow
Lenders typically offer between 4 and 4.5 times your annual income, though some stretch to 5x or even 5.5x in certain circumstances. A joint application uses combined income.
This is a starting point, not a guarantee. Lenders also look at:
- Monthly outgoings: credit cards, loans, car finance, subscriptions
- Credit score and credit history (get a free check via Experian, Equifax, or TransUnion)
- Employment type (permanent employees generally find it easier than self-employed applicants)
- The deposit size: the larger your deposit, the more options you have
Stress testing your payments
Lenders test whether you could still afford repayments if interest rates rose by 3%. Before you apply, run the numbers yourself at a higher rate to make sure you'd cope with a 5–6% rate even if your initial deal is lower than that.
Use our Mortgage Calculator →Step 4: Know your stamp duty position
Stamp Duty Land Tax (SDLT) applies when you buy a property in England or Northern Ireland. First-time buyers get a significant relief, though it was scaled back in April 2025 when temporary higher thresholds expired.
| Property price | First-time buyer rate | Standard rate |
|---|---|---|
| Up to £300,000 | 0% | 0% up to £125k, then 2% |
| £300,001 – £500,000 | 5% | 5% |
| Over £500,000 | No FTB relief (standard rates apply) | Standard rates |
For a £350,000 first home: the first £300,000 is zero-rated, and 5% applies to the remaining £50,000, giving a total stamp duty bill of £2,500 (compared to £7,500 without first-time buyer relief).
Calculate your exact stamp duty →Step 5: Finding a property and making an offer
Before you start viewing properties seriously, get a mortgage in principle (also called an agreement in principle or decision in principle). This is a conditional indication from a lender of how much they'd lend you. It doesn't commit you to anything, but it shows estate agents and sellers you're a serious buyer.
When making an offer, consider the local market. In a competitive market, offering the full asking price or above may be necessary. Estate agents work for the seller, so use online sold prices (Rightmove, Zoopla, Land Registry) to understand what comparable properties have actually sold for.
Step 6: Conveyancing and exchange
Once your offer is accepted, you'll instruct a solicitor or licenced conveyancer to handle the legal process. This typically takes 8–12 weeks (longer in chains or complex cases). Key stages:
- 1
Instruct a solicitor
Get three quotes. Conveyancing fees typically run £1,500–£3,000 including searches, Land Registry fees, and Stamp Duty.
- 2
Survey
A mortgage valuation checks the property is worth what you're paying. A full structural survey (Level 3 HomeBuyer Report) gives much more detail and is worth having on older properties.
- 3
Searches
Your solicitor conducts local authority, drainage, and environmental searches. These take 1–6 weeks depending on the local council.
- 4
Exchange of contracts
You pay your deposit (usually 10%) and both parties sign and exchange contracts. The transaction is now legally binding. You agree a completion date.
- 5
Completion
Your mortgage funds are transferred to the seller. You get the keys. Your solicitor pays the Stamp Duty and registers you as the legal owner at HM Land Registry. If you have a LISA, your solicitor claims the bonus at this stage.