First-Time Buyer Guide: Everything You Need to Know in 2026

Buying your first home is one of the biggest financial decisions you’ll make. This guide walks you through the entire process, from initial research to getting the keys.

Step 1: Work out what you can afford

Before you start browsing, you need to understand your budget. This means two things:

Your deposit

Most lenders require a minimum deposit of 5–10% of the property price. The more you put down, the better mortgage rates you’ll access:

• 5% deposit — available but with higher interest rates
• 10% deposit — significantly better rates
• 15%+ deposit — access to the most competitive deals

On the current national average of £270,259, a 10% deposit would be around £27,000.

Your borrowing capacity

Lenders typically offer 4 to 4.5 times your annual household income. So a couple earning a combined £60,000 could borrow around £240,000–£270,000. Some lenders stretch to 5x or even 5.5x for certain professionals or with specific products.

Tip: Don’t forget to budget for the costs beyond the purchase price — stamp duty, solicitor fees (£1,000–£2,000), survey costs (£300–£700), and moving expenses.

Step 2: Get a mortgage agreement in principle

Before you start viewing properties, get an Agreement in Principle (AIP) from a mortgage lender. This is a conditional offer showing how much they’d be willing to lend you.

An AIP:

• Shows estate agents you’re a serious buyer
• Helps you search within a realistic budget
• Usually takes 24–48 hours to obtain
• Is typically valid for 60–90 days

You can apply directly with banks or through a mortgage broker. Brokers search across the whole market and can often find deals you wouldn’t find on your own.

Step 3: Research areas and properties

This is where data becomes your best friend. Before committing to an area, check:

• Recent sold prices — what have similar properties actually sold for? Use our property search to find out
• Price trends — is the area going up or down? Check our area data
• Schools — if relevant, check Ofsted ratings for nearby schools (shown on every property page)
• Safety — crime data for the local area appears on property pages
• Transport links — commute times can make or break your quality of life
• Local amenities — shops, restaurants, and green spaces nearby

Step 4: Make an offer

Found a property you love? Here’s how to approach the offer:

• Check comparable sales — our property pages show what similar homes in the area have sold for. This gives you a strong negotiating position
• Don’t go in at asking price if the market is slow — 5–10% below is often a reasonable starting point
• Be prepared to negotiate — the agent works for the seller, but a well-researched offer is hard to refuse
• Consider your position — being chain-free (no property to sell first) is a strong advantage

Step 5: Surveys and conveyancing

Once your offer is accepted:

1. Instruct a solicitor — they handle the legal work (conveyancing), including searches, contract review, and the eventual exchange
2. Book a survey — your lender will do a basic valuation, but consider a more detailed Homebuyer Report or Building Survey for older properties
3. Wait for searches — local authority searches, environmental checks, and title checks typically take 4–8 weeks

This is often the most frustrating part of the process. It takes longer than you expect. The average time from offer accepted to completion in England and Wales is 12–16 weeks.

Step 6: Exchange and completion

Exchange of contracts is the point of no return — both parties are legally committed. You’ll pay your deposit at this point.

Completion is when the money transfers, you get the keys, and the property is yours. It usually happens 1–2 weeks after exchange, though it can be on the same day.

First-time buyer benefits

As a first-time buyer, you have several advantages:

• Stamp Duty relief — no tax on the first £300,000 (for properties up to £625,000). Use our Stamp Duty Calculator to see your exact saving
• Lifetime ISA — if you’ve been saving in a LISA, the government adds a 25% bonus (up to £1,000/year)
• No chain — you’re not waiting to sell a property, which makes you attractive to sellers
• Shared Ownership — if you can’t afford to buy outright, you can buy a share (25–75%) and rent the rest from a housing association

How much will it cost in total?

Here’s a rough breakdown for a first-time buyer purchasing at £275,000:

The property itself costs £275,000, but you need roughly £31,000 in cash to make it happen.

Start your search: find properties in your target area and check what they’ve actually sold for.