Buying a home is the largest financial transaction most people will ever make, and in the UK it involves more moving parts than simply finding somewhere you like: deposits, mortgage products, government schemes, stamp duty, surveys and legal work. The reassuring part is that the sequence is well understood, and once you know the order of operations and the numbers involved, the process becomes far less intimidating. This guide walks through it step by step with realistic figures and the tools that genuinely help.
Deposits: How Much, and How Long It Takes to Save
Your deposit is the lump sum you pay upfront. The larger it is, the less you need to borrow and — because you move into a lower loan-to-value band — the better the mortgage rate you will be offered.
| Deposit % | On a £250,000 Property | On a £300,000 Property |
|---|---|---|
| 5% | £12,500 | £15,000 |
| 10% | £25,000 | £30,000 |
| 15% | £37,500 | £45,000 |
| 25% | £62,500 | £75,000 |
Most lenders require a minimum 5% deposit, but 10–15% unlocks significantly better interest rates, and a 25% deposit gives you access to the cheapest deals available. Timescales follow from the maths: saving £500 a month, a 5% deposit of £12,500 takes about 25 months, a 10% deposit of £25,000 about 50 months, and a 15% deposit of £37,500 about 75 months. Saving with a partner roughly halves those timings.
Government Schemes Worth Knowing
The best-known scheme for first-time buyers is the Lifetime ISA (LISA). Open one if you are aged 18–39, save up to £4,000 per year, and the government adds a 25% bonus — up to £1,000 per year — provided the money goes towards a first home of up to £450,000 or your retirement. For many first-time buyers it is the single best tool available: a couple each contributing £4,000 a year collects £2,000 in free bonuses annually.
Shared Ownership lets you buy 25–75% of a property and pay rent on the remaining share, which means a smaller deposit and smaller mortgage. You can staircase — buy more shares — over time as your finances allow, and the scheme is a genuine option for buyers in high-cost areas who cannot stretch to a full purchase. First Homes offers new-build homes at a 30–50% discount to first-time buyers, with eligibility based on household income (typically under £80,000, or under £90,000 in London). The discount is locked into the property, so when you sell, the next buyer gets the same benefit.
How Mortgages Work and What You Can Borrow
A mortgage is a loan secured on the property, repaid with interest over an agreed term of typically 25–35 years. Most lenders will offer around 4–5 times your annual salary, and with two incomes you can borrow more.
| Salary | 4× Salary | 4.5× Salary | 5× Salary |
|---|---|---|---|
| £25,000 | £100,000 | £112,500 | £125,000 |
| £30,000 | £120,000 | £135,000 | £150,000 |
| £35,000 | £140,000 | £157,500 | £175,000 |
| £40,000 | £160,000 | £180,000 | £200,000 |
As a two-income example, £30,000 plus £25,000 gives £55,000 combined, which at 4.5× supports around £247,500 of borrowing. Lenders also run affordability checks — existing debts, commitments and spending habits all influence what they will actually lend, so the headline multiples are a starting point, not a guarantee.
The mortgage product itself comes in a few flavours. A fixed-rate mortgage holds your interest rate for 2, 3 or 5 years, giving predictable payments that suit budgeting. A variable rate can change at any time, usually following the Bank of England base rate, offering lower initial rates but less certainty. A tracker follows the base rate at a set margin (for example, base rate plus 0.75%), rising and falling with the market. And a discount rate is a discount off the lender’s standard variable rate (SVR), which the lender can change at its discretion. First-time buyers almost always choose a fixed rate for the security of predictable payments; a 2- or 3-year fix keeps flexibility to remortgage when circumstances change.
The Costs Beyond the Deposit
Many buyers are caught out by everything that sits on top of the deposit, so it is worth budgeting for the whole list before you start.
| Cost | Typical Range |
|---|---|
| Deposit | 5–25% of property price |
| Stamp duty | £0–£30,000+ (see below) |
| Legal fees (conveyancing) | £1,000–£2,000 |
| Survey | £300–£1,500 |
| Mortgage arrangement fee | £0–£2,000 |
| Mortgage valuation fee | £0–£500 (often free) |
| Removal costs | £300–£2,000 |
| Buildings insurance | £100–£300/year |
Stamp Duty: What You Will Actually Pay
Stamp Duty Land Tax (SDLT) is the tax paid on a property purchase, and the rate depends on the price and on whether you are a first-time buyer. First-time buyers currently pay nothing up to £425,000, then 5% on the portion between £425,001 and £625,000; above £625,000 the standard rates apply and first-time relief is lost.
| Property Price | Stamp Duty Rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001–£625,000 | 5% on the portion above £425,000 |
| Over £625,000 | Standard rates apply (no first-time relief) |
For non-first-time buyers the bands are higher: nothing up to £250,000, 5% on the portion from £250,001 to £925,000, 10% from £925,001 to £1,500,000, and 12% above that.
| Property Price | Stamp Duty Rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001–£925,000 | 5% on the portion above £250,000 |
| £925,001–£1,500,000 | 10% on the portion above £925,000 |
| Over £1,500,000 | 12% on the portion above £1,500,000 |
The numbers make the relief feel concrete. A first-time buyer on a £400,000 property pays £0; one on a £500,000 property pays £75,000 × 5% = £3,750. A non-first-time buyer on a £300,000 property pays £50,000 × 5% = £2,500, and one on a £500,000 property pays £250,000 × 5% = £12,500. Current rates are always worth double-checking at gov.uk/stamp-duty-land-tax.
The Buying Process, Week by Week
The practical sequence from finding a property to getting the keys runs roughly 8–12 weeks. Search broadly at first — Rightmove, Zoopla and OnTheMarket — and visit properties in person, weighing commute times, schools and local amenities alongside the house itself.
Around week six you will make an offer through the estate agent. Most properties carry room for negotiation, so starting 5–10% below the asking price is normal; if the offer is accepted, the property is marked “sold subject to contract” (SSTC). Before you even view, though, it pays to hold a mortgage Agreement in Principle (AIP) from a lender. It is not a guarantee, but it shows sellers you are a serious buyer who can borrow the required sum, and it strengthens your position at the negotiating table.
During weeks 7–8, the formal work happens in parallel. You apply for the mortgage — the lender checks your credit and income, values the property, and offers you terms — and you instruct a solicitor or conveyancer to begin the legal side: checking the property title, raising enquiries and preparing for the exchange of contracts. Fees vary significantly between firms, so shop around with reviews in hand.
Around weeks 8–9 comes the survey, and it is genuinely worth not skipping. A Homebuyer’s Report (Level 2) at £300–£500 suits most properties and covers condition, valuation and key issues. A Full Structural Survey (Level 3) at £500–£1,500 is the more detailed structural assessment and is essential for older, larger or unusual homes. A good survey can reveal problems that would otherwise cost thousands to fix — and gives you leverage to renegotiate the price.
At weeks 10–11 you exchange contracts. From this point you are legally committed to buy, you pay the deposit (usually 10% of the purchase price), and a completion date is set, typically one to two weeks after exchange. On completion, the remaining funds are transferred to the seller’s solicitor, and you collect the keys.
Negotiating the Price
Negotiation is normal in the UK market, and most homes sell below asking. The groundwork is simple: research comparable sales in the area (available on Rightmove and HM Land Registry) so you know what similar homes genuinely fetched. Start 5–10% below the asking price — the worst outcome is a no. If a survey reveals issues, use the findings as leverage to renegotiate. Be ready to walk away if the numbers do not stack up, and make it easy for the seller to say yes by arriving with an Agreement in Principle and a solicitor already instructed.
Conveyancing: The Legal Side
Conveyancing is the legal process of transferring ownership, and you need a solicitor or licensed conveyancer to handle it. Their work covers checking the property’s legal title, raising enquiries with the seller’s solicitor, running local authority searches (planning, environmental), drafting and exchanging contracts, handling the transfer of funds and registering you with HM Land Registry. Expect to pay £1,000–£2,000 including disbursements such as search fees and the Land Registry fee. As with any professional, do not pick purely on price: a slow or unreliable solicitor can delay or even derail an otherwise straightforward purchase.
Worked Example: A First-Time Buying Couple
Putting all the numbers together makes the shape clear. Consider a couple with £30,000 and £25,000 salaries, buying at 4.5× their combined £55,000 income.
| Item | Details |
|---|---|
| Your salary | £30,000 |
| Partner’s salary | £25,000 |
| Combined salary | £55,000 |
| Mortgage (4.5× combined) | £247,500 |
| Deposit (10%) | £27,500 |
| Property price | £275,000 |
| Stamp duty | £0 (first-time buyer, under £425,000) |
| Legal fees | £1,500 |
| Survey (homebuyer’s report) | £400 |
| Mortgage arrangement fee | £1,000 |
| Removal costs | £500 |
| Total upfront costs | £30,900 |
The couple needs £30,900 upfront — the £27,500 deposit plus £3,400 in fees. A mortgage of £247,500 at 4.5% interest over 25 years works out at approximately £1,360 a month.
Useful References
- MoneyHelper — moneyhelper.org.uk
- Which? — which.co.uk
- GOV.UK Stamp Duty — gov.uk/stamp-duty-land-tax
- GOV.UK Check MOT History — gov.uk/check-mot-history
- Rightmove — rightmove.co.uk
- Zoopla — zoopla.co.uk
None of the steps above are as complicated as their billing suggests, but they add up — in both time and money. Save the biggest deposit you can, get an Agreement in Principle before you start viewing, never skip the survey, and budget for every cost beyond the deposit rather than just the ones that make it into the estate agent’s brochure. Done in the right order, the whole process is linear and, for the vast majority of first-time buyers, eminently doable.