Buying your first home is one of life’s milestones. It can feel exciting, daunting, and sometimes overwhelming all at once.

You don’t want to risk losing out on your dream home or getting left behind as prices rise… but equally, you know there are bear traps to avoid, and you want to make sure you aren’t taken advantage of.

There are many steps – and indeed, missteps – between the moment you decide to start looking seriously for your first home and the day you finally get your hands on those keys! The good news is that, with proper preparation and professional support, the journey is less bumpy than you might expect.

This guide will help you save money, time, and stress by walking you through the essentials every first-time buyer should know, so you can feel confident at every stage.

Step 1: Know and Understand Your Budget

A good place to start is to work out how much you can afford. This means looking at what deposit you could afford to put down, or which you need to save for, as well as thinking about what you can realistically afford to pay each month for mortgage repayments.

• Deposit: Unless you source a particularly extraordinary scheme, you will need at least 5% of the property price for a deposit, although 10% will give you access to better mortgage deals (with 15%, 20%, 25% deposits securing better deals still).
• Monthly repayments: Using online calculators can give you a good general idea about how different loan amounts and interest rates affect your monthly costs, but nothing beats a sit-down with a professional mortgage advisor. We can recommend one you can trust, but do ‘shop around’ (however, take care to check their online reviews).
• Other costs: Don’t forget solicitor’s fees, surveys, mortgage arrangement fees, and moving costs. Again, a good mortgage advisor will take you through a full cost of moving exercise – and some mortgage deals will include free valuations and allow you to tag the arrangement fee onto the end of the mortgage.

Do note: some mortgage advisors will charge you fees, and some won’t – it is worth checking in advance, but also worth noting that a fee isn’t unusual or frowned upon, and despite it typically being called an ‘advice fee’, it is usually only charged once your application has been successful.

Tip: Government schemes come and go, which can often help first-time buyers out – although they can also sometimes tie you to a limited number of properties. It is worth exploring with your mortgage broker if any schemes are currently available and appropriate for you.

Step 2: Getting a Mortgage in Principle

Before you start viewing properties, it is worth getting an agreement in principle (also called a mortgage in principle or decision in principle).

The agreement in principle is a document from a lender confirming how much they should be willing to lend you, based on a credit check and your income. It is not a guaranteed mortgage offer, but it shows estate agents and sellers that you are a serious buyer.

Some sellers insist on viewers having one in place before allowing them to visit.

Step 3: Viewing Properties

The fun part: house hunting!

When viewing properties, think beyond simply the cosmetic details. Here are a few points you might consider:

• What is the local area like at different times of day?
• Is the property leasehold or freehold? If leasehold, what is the lease length, service charge and ground rent, and what is the ‘ground rent review period’? These questions are essential as some lenders may not offer the mortgage.
• Are there signs of damp, cracks, or structural issues?
• Does it meet your “must-have” list, or are you compromising on essentials?

Tip: It is helpful to view a property more than once before making an offer.

Step 4: Making an Offer

Once you’ve found “the one”, you make an offer through the estate agent. Most properties are listed with an ‘asking price’ – but whilst seller and agent would like to see offers at that level, you are not obliged to offer this price.

Nevertheless, if you are going to offer something different, there are certain things to consider to avoid your offer being rejected out of hand or considered as unserious.

• Research recently sold properties in the area and the prices they achieved, to inform your offer and to back it up.
• Be prepared to negotiate. Your offer might be rejected, but that doesn’t mean the negotiation stops.
• Factor in whether you’ll need to budget for renovations.
• Consider other things you can offer, such as a timescale to suit the seller. It isn’t always about the price offered – it can be about how their move can be facilitated. 

If your offer is accepted, the property is usually marked “sold subject to contract” (SSTC). If it isn’t, you will want to ensure that no further viewings are taking place, as this could lead to gazumping.

Step 5: Appointing a Solicitor or Conveyancer

You will need a solicitor or licensed conveyancer to handle the legal side of the purchase. Their job is to:

• Review contracts.
• Carry out searches.
• Raise enquiries and report to you on findings.
• Liaise with the seller’s solicitor.
• Guide you through to completion.

They will also most likely act on behalf of your lender, too – so remember: not all enquiries raised are for you or necessarily things you care about… but if your lender needs satisfying, there is no way around it.

Often, you will run into problems that might seem insurmountable – missing documents, missing building control, missing planning permission, etc!.

As serious as problems can seem, solicitors can often find a workaround. For example, the seller may sometimes be able to obtain an appropriate insurance policy to protect you and the lender, allowing the sale to proceed. Your solicitor or conveyancer can advise you.

Step 6: Surveys and Mortgage Offer

Your lender will arrange a valuation to confirm that the property’s value meets the requested loan-to-value ratio. It isn’t a survey, although serious faults will probably be identified if the valuation is an in-person inspection (it could be a desktop or even an automated exercise, depending on the lender and loan amount).

Therefore, you may also choose a survey of your own. These come in various levels (Level 1, 2, and 3, corresponding to what used to be Basic Survey or Condition Report (Level 1), Homebuyer Report (Level 2), or Building Survey (Level 3)).

Once the lender is satisfied, you’ll receive a formal mortgage offer. This is usually valid for 3–6 months but can often be extended if necessary – for example, if there are delays during the conveyancing process.

Step 7: Exchange and Completion

Once enquiries have been raised and satisfied, the mortgage offer has been issued, contract terms are agreed, and you transfer your 10% deposit (unless otherwise agreed) to your solicitor or conveyancer, they will exchange contracts with the seller’s solicitor. From this point, the purchase is legally binding, and you face severe financial penalties if you withdraw.

Completion usually happens a week or two later, though it can be longer – especially if new build sales are involved anywhere in the chain.

On completion day, the balance is paid, and you get a call to come in and pick up the keys to your first home!

Final Thoughts

Buying your first home will almost certainly feel like a learning curve – but understanding the steps you will go through will help to prevent it from feeling overwhelming.

With realistic budgeting, an engaged estate agent, a trusted mortgage adviser and a good solicitor, you should feel you are in safe hands.

It really does help to be prepared; sort your finances early, get professional advice from the outset, and take your time with decisions. View twice, or three times. Don’t offer more than you are comfortable with; it makes it more likely you will back out or seek to renegotiate – and renegotiation can lead to a rejection, unless legal, structural or valuation reasons justify it.

Frequently Asked Questions About Buying Your First Property

How much deposit do I need as a first-time buyer?
You will usually need at least 5% of the property price, though 10% plus will give you more choice and better mortgage rates. You can ask a mortgage broker or advisor if any appropriate schemes are available that support first-time buyers.

Do first-time buyers get stamp duty relief?
First-time buyers in England and Northern Ireland pay zero Stamp Duty up to £300,000, with that relief given on purchases up to £500,000. Purchases above £500,000 incur full stamp duty. There are different regimes in Scotland and Wales.

Should I use a mortgage broker?
A mortgage broker or advisor is able to compare deals across lenders, access exclusive deals, offer actual advice and will be there to guide you through the process.

Are there hidden costs I should worry about?
Legal fees, surveys, mortgage fees, general moving costs, and insurance all add up. Budget at least a few thousand pounds on top of your deposit – and especially seek advice on stamp duty, which will depend on the amount you are purchasing at.

How long does it take to purchase a property?
From the point that your offer is accepted to the point you exchange contracts ahead of completion, expect around 12–16 weeks on average – though timescales vary depending on the length and makeup of chains, enquiries raised, missing documents and other matters.

Thanks for reading from all at Quarters 💙        

If you’re looking at buying your first home, e-mail Nick Harris or Teresa Ling on hello@quarters.agency – we’re here to help!