First-Time Buyer Guide: Everything You Need to Know

Where to start

The first step for most first-time buyers is understanding how much you can borrow and how much deposit you need. These two figures define what's achievable and shape everything that follows.

var(--inspire-text)]">How much can you borrow? Most lenders will offer 4–4.5 times your annual income. So on a salary of £35,000, you could typically borrow £140,000–£157,500. Use our [borrowing calculator to get an estimate.

How much deposit do you need? The minimum is 5% of the purchase price, but 10% gives you access to significantly better rates. On a £250,000 property, that's £12,500 (5%) or £25,000 (10%).

Getting a mortgage in principle

Before you start viewing properties seriously, it's worth getting a mortgage in principle (also called an agreement in principle or AIP). This is a conditional offer from a lender confirming how much they'd be willing to lend, based on a soft credit check.

An AIP shows estate agents and sellers that you're a serious buyer, which can give you an advantage in competitive situations. It typically takes 24–48 hours to arrange.

Finding the right property

Once you know your budget, you can start searching in earnest. Key things to consider:

• ●Location — think about commuting, schools, amenities, and future resale value
• ●Property type — freehold vs leasehold (important for flats), new build vs existing
• ●Condition — a survey will reveal any issues, but factor in potential repair costs
• ●Chain — a shorter chain (or no chain) means a faster, more reliable transaction

Making an offer

When you find the right property, you'll make an offer through the estate agent. This is usually done verbally and then confirmed in writing. Don't be afraid to negotiate — the asking price is rarely the final price.

Once your offer is accepted, you'll need to:

• 1.Instruct a solicitor (conveyancer) to handle the legal work
• 2.Apply formally for your mortgage
• 3.Have a survey carried out on the property
• 4.Exchange contracts (legally binding)
• 5.Complete (move in)

The legal process (conveyancing)

Your solicitor will handle searches, check the title, review the contract, and manage the transfer of funds. The conveyancing process typically takes 8–12 weeks, though it can be faster or slower depending on the complexity of the transaction and the length of the chain.

Costs to budget for

Beyond your deposit, there are several other costs to factor in:

Use our stamp duty calculator to calculate your exact liability.

Getting the right mortgage

As a first-time buyer, you have access to the full range of residential mortgage products. The key decisions are:

• ●Fixed vs tracker — most first-time buyers choose a fixed rate for the certainty it provides
• ●Term length — longer terms (30–35 years) reduce monthly payments but increase total interest paid
• ●Repayment vs interest-only — almost all residential mortgages are repayment (you pay off capital and interest each month)

var(--inspire-text)]">Ready to take the first step? [Check your eligibility or book a free call with Michele to discuss your situation.