Buying your first home — UK 2026/27

Step 1 (months -24 to -12): Decide if buying is right for you

Before committing to a multi-year savings effort, honestly evaluate whether buying makes sense:

• How long will you stay? Under 5 years, renting usually wins on total cost (purchase + sale costs typically £15-£30k can't be amortised over short periods)
• Job and life stability: do you expect to need to move for work / family in the next 5 years?
• Affordability stress test: can you afford the mortgage if rates rise 2-3%? See our stress test guide.
• Lifestyle fit: buying ties you to a location; renting gives flexibility

Use our rent vs buy calculator to model the financial side. If the answer is "we're not sure", that's often a sign to keep renting and saving until certainty improves.

Step 2 (months -36 to -6): Open a LISA

If you're a first-time buyer aged 18-39, the Lifetime ISA is the highest-leverage financial product available:

• Contribute up to £4,000/year
• Government adds 25% bonus = up to £1,000/year free
• Use the LISA for first home purchase (up to £450,000 property value) penalty-free
• Or hold until age 60 for tax-free retirement income
• Available in Cash LISA (Moneybox, Skipton BS) or Stocks & Shares LISA (AJ Bell, Hargreaves Lansdown, Nutmeg)

Math: contribute £4,000 in March 2026. Government adds £1,000 in April-May. You have £5,000 (plus growth). Over 5 years that's £25,000 of free bonus money on £20,000 of contributions.

Eligibility: you must be UK-resident, 18-39 when opening, never owned UK property before, buying a property under £450,000.

See our LISA calculator.

Step 3 (months -24 to -12): Save your deposit + buffer

Target deposit:

• Minimum: 5% (95% LTV mortgage). Limited lenders; higher rates.
• Sensible: 10-15% (85-90% LTV). Better rate availability.
• Optimal: 25%+ (75% LTV or lower). Best rates.

For a £300,000 first home: 10% = £30,000 deposit; 15% = £45,000.

Plus you'll need ~£3-£10k beyond the deposit for stamp duty, conveyancing, survey, removals, buildings insurance, immediate post-completion costs. Don't drain your finances exactly to the deposit amount; build in a buffer.

Hold deposit money in:

• Cash LISA (if under 40) — 25% bonus
• Cash ISA (regular) — tax-free interest at 4-5%
• Easy-access savings — high interest, fully accessible (Trading 212 Cash 4-5%, Cynergy Bank, Chip etc.)
• NOT in stocks if buying within 5 years — equity volatility too high for short-horizon deposit money

Step 4 (months -6 to -3): Prepare your credit profile

Mortgage lenders look at your credit file. Issues you can fix in 3-6 months:

• Get on the electoral roll (huge boost to credit scores; instant)
• Pay credit card balances down (high utilisation hurts score)
• Avoid new credit applications in the 3-6 months before mortgage application
• Dispute any errors on your credit file (free statutory report from Experian, Equifax, TransUnion)
• Build credit history if very thin (e.g. use a credit card for small purchases, pay in full monthly via direct debit)

Check your credit via ClearScore (Equifax), Credit Karma (TransUnion), MSE Credit Club (Experian) — all free.

Step 5 (months -3 to -1): Get a Mortgage in Principle (MIP)

An MIP (sometimes "DIP" or "AIP") tells you approximately what a lender would lend you. Free, takes 15-30 minutes online. Valid 60-90 days.

Why now:

• Confirms you can actually afford what you're looking at
• Estate agents take you seriously when viewing
• You can submit a credible offer when you find the right property

How to get one:

• Direct from a lender (e.g. Halifax, NatWest, Santander — all have online MIP tools)
• Via a whole-of-market broker (free; recommended): London & Country, Habito, Mortgage Advice Bureau

The broker route is often better because they know which lender will give you the best deal AND highest borrowing for your specific profile.

Step 6 (months -3 to 0): Research and view properties

Standard search tools:

• Rightmove (largest UK property portal)
• Zoopla (good for sold price history)
• OnTheMarket (some agents list here first)
• Local estate agents (register for new listings)

Viewing checklist:

• See 5-10 properties before making an offer (you don't know what you want until you've seen the spectrum)
• Visit at different times of day (rush hour, weekends, evenings)
• Check phone signal, broadband speed (postcode lookup), schools (Ofsted ratings), transport, future development plans (local council planning portal)
• Check the condition objectively: roof, gutters, damp, windows, electrics, heating, kitchen, bathroom
• For leasehold flats: lease length, ground rent, service charges, reserve fund

Don't fall in love with a property until you've made the offer. Emotional attachment leads to overpaying.

Step 7 (month 0): Make your offer

UK offers are usually verbal first, confirmed in writing. Tactics:

• Reference sold prices, not asking: check Land Registry's "price paid data" for the postcode
• Start 5-10% below asking in a normal market; less aggressive in hot markets
• Mention your strengths: cash buyer (if applicable), chain-free (if renting and can complete quickly), MIP in hand, flexible on completion
• Be prepared to negotiate: the seller may counter; bid up in small increments if you really want it

Once accepted, the property goes "sold subject to contract" (STC). This is NOT legally binding — either party can withdraw until exchange. About 30-40% of UK sales fall through after STC.

Step 8 (month 1): Engage solicitor + apply for full mortgage

Two parallel workstreams after offer accepted:

8a. Choose a solicitor / conveyancer

You need a regulated conveyancer or solicitor:

• Online firms (Convey Law, Setfords, Bird & Co): £800-£1,400 + disbursements
• Local high-street solicitor: £1,200-£2,000 + disbursements
• Specialist (e.g. complex leasehold, listed buildings): £1,500-£3,000

Disbursements add ~£300-£500 (searches, Land Registry, AML checks). Total typical legal cost: £1,500-£2,500.

8b. Submit full mortgage application

The full application requires documentation:

• 3 months' bank statements
• 3 months' payslips
• P60 (most recent)
• Photo ID + proof of address
• Source of deposit evidence
• Credit commitments details

Underwriter decisions take 2-4 weeks. The lender will arrange a property valuation (basic; protects them, not you).

Step 9 (month 1-2): Property survey

The lender's valuation is NOT a survey. You need your own survey to identify problems:

• Level 1 (Condition Report): £300-£500. For new builds.
• Level 2 (HomeBuyer Report): £500-£900. For most standard properties.
• Level 3 (Building Survey): £800-£2,000. For old properties, unusual constructions, or if Level 2 raises concerns.

If the survey reveals issues, you have options:

• Accept and proceed (if minor)
• Renegotiate the price downward to cover repair costs
• Walk away (if the issues are deal-breakers)

Skipping the survey to save £700 risks discovering a £15,000 damp issue after completion. False economy.

Step 10 (month 2-3): Searches + mortgage offer

Your conveyancer orders searches (local authority, environmental, water/drainage, etc.). These take 2-6 weeks depending on local council backlogs.

Meanwhile, the lender completes underwriting and issues a formal mortgage offer. Read it carefully — this is the binding contract for the loan.

By month 3, you should have:

• Mortgage offer issued ✓
• Survey results ✓
• Searches complete ✓
• Your conveyancer has reviewed the title, lease (if leasehold), all paperwork

You're ready to exchange.

Step 11 (month 3-4): Exchange + completion

Exchange of contracts

At exchange:

• Both buyer and seller sign contracts
• Deposit (typically 10% of purchase price, can be your full deposit) is paid to seller's solicitor
• You're legally committed; pulling out loses your deposit
• The completion date is fixed (usually 1-4 weeks after exchange)
• You MUST have buildings insurance in place from exchange (you're now responsible for the property)

Completion

The day you move in:

• Mortgage funds released to seller
• You pay any remaining balance + fees
• Keys released (collect from estate agent)
• Ownership transfers

Stamp Duty Land Tax is filed by your conveyancer within 14 days of completion.

Step 12 (months 4-6 post-completion): Post-completion admin

The week-1-after-moving-in checklist that nobody warns you about:

• Take meter readings on completion day: gas, electric, water. Photograph them with date/time. Use to verify final bills from previous supplier.
• Set up utility accounts: electric, gas, water, council tax (notify council of move), broadband, TV licence
• Update address everywhere: bank, employer, insurance, electoral roll, driving licence, vehicle registration, GP, pension provider, ISA platform, mobile, subscriptions
• Mail forwarding: Royal Mail's "redirection" service (£30/year) catches anything you forgot to update
• Buildings + contents insurance: should already be in place from exchange; review and shop around at renewal
• Mortgage protection life insurance: consider term life and income protection now you have a mortgage to protect
• Will writing: your finances just got significantly more complex; write a will
• Lasting Power of Attorney: not just for old people; set up an LPA
• Set up overpayment direct debit: even £50/month overpayment reduces your mortgage term by years
• Diary mortgage fix end date: 6 months before, start remortgage process