First-Time Buyer Guide
Complete UK guide to buying your first home. From saving your deposit to getting the keys, we will walk you through every step of the journey.
What Does First-Time Buyer Mean?
A first-time buyer is someone who has never owned a property in the UK or abroad. This status is important because it unlocks special mortgage deals, government schemes, and lower stamp duty costs.
First-Time Buyer Benefits
- No stamp duty on properties up to £300,000 (as of 2025)
- Access to Lifetime ISA (LISA) with 25% government bonus
- Exclusive first-time buyer mortgage rates
- Help to Buy equity loan (for new builds, until March 2023)
Understanding Your Deposit
Your deposit is the money you put towards buying a property. The size of your deposit affects the mortgage deals available to you and your monthly payments.
Deposit Examples
| Property Price | 5% Deposit | 10% Deposit | 15% Deposit |
|---|---|---|---|
| £200,000 | £10,000 | £20,000 | £30,000 |
| £250,000 | £12,500 | £25,000 | £37,500 |
| £300,000 | £15,000 | £30,000 | £45,000 |
| £350,000 | £17,500 | £35,000 | £52,500 |
Loan-to-Value (LTV)
Loan-to-Value measures how much of the property you are borrowing. A 5% deposit means you need a 95% LTV mortgage. Generally, lower LTV mortgages (larger deposits) offer better interest rates.
- 95% LTV: 5% deposit - Higher rates, limited availability
- 90% LTV: 10% deposit - More options, moderate rates
- 85% LTV: 15% deposit - Better rates, more lenders
- 80% LTV: 20% deposit - Competitive rates
Government Schemes for First-Time Buyers
The UK government offers several schemes to help first-time buyers get on the property ladder.
Lifetime ISA (LISA)
Save up to £4,000 per year and the government adds a 25% bonus. That is up to £1,000 free every year towards your first home.
- - Available for ages 18-39
- - Can be used for deposits up to £450,000
- - Must be opened at least 12 months before withdrawing
- - Withdrawals for non-housing purposes incur 25% penalty
Shared Ownership
Buy a share of a property (typically 25-75%) and pay rent on the rest. You can buy more shares later through staircasing.
- - Requires smaller deposit (as low as 5% of your share)
- - Must be first-time buyer to qualify
- - Income limits apply (typically £80,000 outside London)
- - Properties are usually new builds or housing association homes
First Homes Scheme
New scheme offering 30-50% discount on new build properties. Priority goes to first-time buyers, key workers, and veterans.
- - Discount applies to market value
- - Property price capped at £250,000 (after discount)
- - Must be first-time buyer
- - Must meet income limits
Additional Costs When Buying
Your deposit is just one part of the money you need. There are several other costs to budget for when buying your first home.
One-Off Costs
| Cost | Typical Amount | Notes |
|---|---|---|
| Stamp Duty | £0-£2,500 | First-time buyers pay nothing up to £300,000 |
| Mortgage Arrangement Fee | £0-£2,000 | Often added to mortgage |
| Survey | £400-£1,500 | Basic or structural survey |
| Legal Fees | £800-£1,500 | Conveyancing costs |
| Land Registry Fee | £20-£500 | Based on property price |
| Valuation Fee | £300-£700 | Lenders require this |
Ongoing Costs
- Mortgage payments - Your monthly payment to the lender
- Buildings insurance - Required by lenders, typically £150-£400/year
- Life insurance - Optional but recommended to protect your mortgage
- Service charges - If buying a flat or leasehold property
- Ground rent - For leasehold properties
- Council tax - Based on property band
Types of Mortgages
Understanding mortgage types helps you choose the right deal for your situation.
Fixed Rate Mortgage
Your interest rate stays the same for 2-5 years. Your monthly payments are predictable, which helps with budgeting.
Best for: First-time buyers who want payment certainty
Variable Rate Mortgage
Your rate can go up or down based on the lender's standard variable rate (SVR) or the Bank of England base rate.
Best for: Those comfortable with payment changes
Tracker Mortgage
Your rate tracks the Bank of England base rate plus a percentage. When base rate changes, your mortgage follows.
Best for: Those who understand how interest rates work
Offset Mortgage
Your savings are offset against your mortgage balance, reducing the interest you pay.
Best for: Those with significant savings
Steps to Buying Your First Home
Check Your Credit Score
Your credit score affects the mortgages available to you. Check your report with Experian, Equifax, or TransUnion. Pay off debt and ensure you are on the electoral roll.
Get a Mortgage Agreement in Principle
This shows sellers you are serious and have been pre-approved. It is based on a soft credit check and gives you a borrowing estimate.
Find a Property
Use Rightmove, Zoopla, or OnTheMarket. Consider location, transport links, schools, and future growth potential. Be prepared to act quickly in competitive areas.
Make an Offer
Research comparable properties. Your offer should reflect condition, location, and market conditions. Estate agents must pass all offers in writing.
Arrange a Survey
A survey identifies any structural issues. Level 2 (HomeBuyer Report) is usually sufficient for conventional properties. For older or unusual properties, consider a Level 3 structural survey.
Finalise Your Mortgage
Submit your full mortgage application with payslips, bank statements, and ID. The lender will value the property. This takes 2-4 weeks.
Exchange Contracts
Your solicitor exchanges contracts with the seller's solicitor. You pay your deposit. At this point, the sale becomes legally binding.
Complete and Move In
Your solicitor transfers the remaining funds. You receive the keys. Congratulations - you are now a homeowner!
How Delphina Can Help
Delphina helps you understand your finances and plan for your first home purchase.
Track Your Savings
Set savings goals and track progress towards your deposit. See how close you are to your target with visual progress indicators.
Start savingCalculate What You Can Afford
Use our mortgage calculator to understand how much you could borrow and what your monthly payments might look like.
Calculate mortgagePlan Your LISA Strategy
See how a Lifetime ISA could boost your deposit with the 25% government bonus. Compare LISA vs regular savings.
Learn about LISAUnderstand Additional Costs
Get a complete picture of all costs involved in buying, including stamp duty, legal fees, and ongoing expenses.
Plan your budgetReady to Start Your Home Buying Journey?
Use Delphina to track your savings, plan your deposit, and understand what you can afford.
Frequently Asked Questions
Common questions about buying your first home in the UK
Ready to Start Your Home Buying Journey?
Use Delphina to track your savings, plan your deposit, and understand what you can afford on your path to homeownership.
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