First-time buyer step-by-step — UK 2026/27
Buying your first home is one of the largest financial decisions you'll ever make and the process has at least 14 distinct steps spread over 3-6 months. Most first-time buyer guides focus on the deposit and the mortgage and skip everything else. This walkthrough covers all 14 steps in order, the realistic costs (you'll need at least £3,000-£8,000 in cash beyond the deposit), the timing of each step, and the decisions that materially affect the cost and outcome.
The 14-step UK first-time buyer journey
- Check your credit file and finances
- Save your deposit (5-20%+)
- Get a Mortgage in Principle (MIP / DIP)
- Research and view properties
- Make an offer
- Have the offer accepted — the property goes "sold subject to contract"
- Choose a solicitor / conveyancer
- Apply for the full mortgage
- Mortgage valuation + property survey
- Searches (local authority, environmental, water/drainage)
- Mortgage offer issued
- Exchange of contracts (you're legally committed at this point)
- Completion (move-in day; ownership transfers)
- Post-completion (Land Registry, SDLT return, mortgage protection)
Average timeline: 3-6 months from offer accepted to completion. Faster (8-12 weeks) for chain-free purchases of new builds; slower for complex chains or freehold/leasehold complications.
Step 1: Check your credit file
Mortgage lenders pull your credit file as the first underwriting check. Before applying, check your own (free) so you know what they'll see:
- Experian, Equifax, TransUnion — the three UK credit reference agencies. Free statutory credit report from each.
- Easy free access: ClearScore (Equifax), Credit Karma (TransUnion), MSE Credit Club (Experian)
Common issues to fix before applying for a mortgage:
- Late payments — remove if disputed; clear if real
- Defaults — usually stay on file for 6 years; can dispute if incorrect
- Old / disputed accounts — raise disputes via the agency
- Not being on the electoral roll — register at gov.uk (huge impact on credit scores)
- Soft credit checks counted as hard checks — rare but can happen
Allow 3-6 months to fix significant credit issues before applying for a mortgage.
Step 2: Save your deposit
UK first-time buyer deposit minimums in 2026/27:
| Deposit % | LTV (loan-to-value) | Rate availability | For a £250k home |
|---|---|---|---|
| 5% | 95% LTV | Limited lenders; higher rates | £12,500 deposit |
| 10% | 90% LTV | Wide availability; moderate rates | £25,000 |
| 15% | 85% LTV | Better rates available | £37,500 |
| 20% | 80% LTV | Significantly better rates | £50,000 |
| 25%+ | 75% LTV or lower | Best rates | £62,500+ |
Mortgage rate gap by LTV: a 5% deposit (95% LTV) typically costs 0.5-1.0% more in interest rate than a 25% deposit (75% LTV). On a £200k mortgage over 25 years, that's roughly £15,000-£25,000 of extra interest. Saving more deposit pays for itself.
Government help with deposits
- Lifetime ISA (LISA): 25% government bonus on contributions up to £4,000/year. Maximum £1,000/year bonus. Can be used for first home purchase up to £450,000. See our LISA calculator.
- Help to Buy: ISA (closed to new applicants, but existing accounts can still claim bonus)
- Shared Ownership: buy 25-75% of a property; pay rent on the rest. Reduces deposit need but adds rent payment.
- First Homes scheme: 30-50% discount on selected new builds for local first-time buyers (England only). Income cap applies.
Step 3: Mortgage in Principle (MIP)
An MIP (also called "DIP" for Decision in Principle, or "AIP" for Agreement in Principle) is a quick assessment from a mortgage lender of approximately how much they'd lend you, based on a soft credit check and your declared finances.
- Free, takes 5-15 minutes online via a lender or broker
- Valid for 60-90 days typically
- Estate agents will ask to see one before letting you view properties seriously
- NOT a guarantee — the lender can still decline at full application stage
Get an MIP before you start viewing properties. It tells you what price range you should look in and gives credibility to your offers.
Step 4: Research and view properties
Standard process:
- Search Rightmove, Zoopla, OnTheMarket for properties in your area
- Register with local estate agents (they'll email you new listings)
- View properties — aim to see 5-10 before making an offer
- Consider: location, transport, schools, future resale, condition, lease length (for leasehold), service charges, ground rent
UK property listings can be misleading. View in person before making an offer; photos and floor plans hide a lot.
Step 5: Making an offer
UK offers are usually verbal initially (via the estate agent), then confirmed in writing. The asking price is the starting point; offers below are common:
- In a slow market: offering 5-10% below asking is common; sometimes accepted
- In a hot market: properties sometimes sell for over asking
- Anchor your offer to local sold prices, not asking prices — check Land Registry's price paid data
The estate agent works for the seller. They want the highest price. Friendly but adversarial relationship.
Step 6: Offer accepted — "sold subject to contract"
When your offer is accepted, the property is "sold subject to contract" (STC). This is NOT legally binding — either party can withdraw at any time before exchange of contracts (potentially weeks later). About 30-40% of UK property sales fall through between offer and exchange (data: Quick Move Now).
Common reasons sales fall through:
- Survey reveals expensive issues; buyer renegotiates or withdraws
- Mortgage falls through (lender's full underwriting declines)
- Seller receives a better offer (gazumping — legal but disliked)
- Chain breaks above or below your purchase
- Buyer cold feet
- Searches reveal issues
Be prepared for this. Don't get emotionally attached to a property until exchange.
Step 7: Choose a solicitor / conveyancer
You need a regulated conveyancer or solicitor to handle the legal transfer. Costs:
- Online conveyancer (e.g. Convey Law, Bird & Co): £800-£1,400 + disbursements
- Local high-street solicitor: £1,200-£2,000 + disbursements
- Specialist property law firm: £1,500-£3,500 + disbursements (for complex transactions)
"Disbursements" are fees the conveyancer pays on your behalf: searches (£200-£400), Land Registry fee (£40-£330 based on property value), bank transfer fees (£25-£50), AML checks (£6-£15).
Total typical legal cost: £1,500-£2,500 all-in for a standard freehold purchase. Leaseholds and complex purchases more.
Step 8: Apply for the full mortgage
The full mortgage application requires substantial documentation:
- 3 months of bank statements
- 3 months of payslips (or 2-3 years of accounts for self-employed)
- P60 (most recent tax year)
- Photo ID + proof of address
- Source of deposit funds (where did the £25k come from?)
- Details of all credit commitments
Lender does a "hard" credit search at this stage. The lender's underwriter checks affordability against the property price and proposed mortgage. Decisions can take 2-4 weeks.
Step 9: Mortgage valuation + property survey
Two separate things often confused:
Mortgage valuation (basic)
A short valuation the lender uses to confirm the property is worth roughly what you're paying. Often a desktop valuation (no inspection). Cost typically included in mortgage product or £0-£500. Protects the LENDER, not you.
Property survey (recommended for you)
An inspection of the property by a chartered surveyor to identify problems.
- Level 1 (basic / condition report): £300-£500. For new builds or recently-built homes.
- Level 2 (HomeBuyer Report): £500-£900. For most standard homes. Identifies major issues.
- Level 3 (Building Survey / "Full Structural"): £800-£2,000+. For older properties (pre-1930), unusual constructions, or if Level 2 raises concerns.
Skipping the survey is a false economy — finding a £15,000 damp issue or roof problem after completion vs £700 to identify it beforehand is a huge difference.
Step 10: Searches
Your conveyancer orders various searches:
- Local authority search: planning history, conservation status, road schemes, building regulations completed
- Environmental search: contaminated land risk, flood risk, radon, subsidence
- Drainage and water search: whether the property is connected to mains
- Chancel repair liability: rare but property can be liable to pay for medieval church repairs
- For leaseholds: leasehold information pack, freeholder/management company details
Search results take 1-4 weeks. Costs included in conveyancer's disbursements (£200-£400).
Step 11: Mortgage offer issued
If underwriting approves and the valuation is satisfactory, the lender issues a formal mortgage offer. Valid typically 3-6 months. Contains the loan amount, rate, term, repayment method (repayment vs interest-only) and all conditions.
Read the mortgage offer carefully. Mistakes happen and are easier to fix before exchange.
Step 12: Exchange of contracts
The point of no return. Both buyer and seller sign contracts; deposit (typically 10% of purchase price — can be your full deposit if you have one) is paid to the seller's solicitor. From exchange:
- You're legally committed to buy
- You're at risk if the property burns down (insure from exchange date)
- Completion date is fixed
- If you pull out, you lose your deposit
- If seller pulls out, they're liable for substantial penalties
Step 13: Completion
The day you move in:
- Mortgage funds are transferred to the seller
- You pay any remaining balance
- Keys are released — you collect from the estate agent
- Ownership transfers
Typical timing: 1-4 weeks after exchange, but same-day exchange-and-completion is possible (and common for chain-free purchases).
Step 14: Post-completion
The 2-4 weeks after moving in:
- Stamp Duty Land Tax (SDLT) return: filed by your conveyancer within 14 days of completion. SDLT paid (see our SDLT calculator; first-time buyer relief saves up to £6,250)
- Land Registry application: filed by your conveyancer within 2 months. Title registered in your name. Land Registry fees £40-£330.
- Buildings insurance: must be in place from exchange. Set up monthly direct debit if not already done.
- Mortgage protection life insurance: highly recommended. Term life insurance guide.
- Council tax: notify the local council; pay from completion date
- Utilities: read meters at completion; set up accounts with new suppliers (or transfer existing)
- Council tax / utility direct debits, broadband, TV licence
- Update electoral roll, driving licence, etc. with new address
Total cost beyond the deposit
| Cost | Typical amount |
|---|---|
| SDLT (first-time buyer relief) | £0-£6,250 depending on price |
| Conveyancing + disbursements | £1,500-£2,500 |
| Property survey (Level 2) | £500-£900 |
| Mortgage valuation | £0-£500 (often included) |
| Mortgage broker fee (if used) | £0-£500 |
| Buildings insurance (first year) | £200-£500 |
| Moving costs (van / movers) | £500-£2,000 |
| Total beyond deposit | £3,000-£13,000+ |
Do you need a mortgage broker?
A mortgage broker (also called a mortgage adviser) compares mortgages across the market and recommends the best fit. Two types:
- Whole-of-market: compares all UK lenders. Best independence.
- Tied or panel-based: works with a limited list of lenders. Less comprehensive.
Broker fees: usually paid by commission from the lender (no fee to you), sometimes a flat fee £200-£500.
For first-time buyers, a whole-of-market broker is almost always worth using. They know which lenders are most likely to accept your specific profile, can navigate complex affordability calculations, and add real value for free. Examples: London & Country (free; whole of market), Habito, Mortgage Advice Bureau.
Frequently asked questions
How much can I borrow?
Most lenders offer ~4.5x annual gross income (single applicant) or combined income for joint mortgages. So £40,000 income = ~£180,000 mortgage. Some lenders go higher (5-5.5x) for higher earners or specific circumstances. Use our mortgage calculator for a rough estimate, then get a Mortgage in Principle for the real lender view.
How long does the whole process take?
From accepted offer to completion: typical 3-4 months for a chain-free purchase, 4-6 months with a chain. Faster is possible (8-10 weeks) for organised buyers with cash purchases or new builds.
What's gazumping?
The seller accepts a higher offer from another buyer after already accepting yours, before exchange of contracts. Legal in England & Wales; widely disliked. Some buyers use "lock-out agreements" or "exclusivity periods" to prevent it — the seller agrees not to entertain other offers for a defined period in exchange for a fee.
Is it cheaper to buy or rent in 2026?
Depends entirely on location and your time horizon. Use our rent vs buy calculator to model specific scenarios. Short-term (under 5 years), renting is often cheaper. Long-term (10+ years), buying typically wins on cumulative cost — if you can afford the deposit and mortgage payments.
Should I buy a leasehold flat?
Leaseholds add complexity: ground rent, service charges, lease length (mortgage lenders typically want 80+ years remaining), potential leasehold extension costs. Modern UK government policy is moving away from new leaseholds. For first-time buyers, freehold houses are simpler; leasehold flats can be fine but require careful conveyancing.
What if I'm self-employed?
Self-employed mortgage applications need 2-3 years of accounts or tax returns (SA302). Recent self-employed (under 2 years) can struggle to find lenders. Specialist self-employed mortgage brokers can help find lenders that accept your specific situation.
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