📋 In this guide
Step 1 — Know what you can afford
Before you look at a single property, you need a clear picture of your finances. Estate agents and sellers take buyers more seriously when they've done this groundwork.
Most lenders will offer between 4x and 4.5x your annual income as a mortgage. So if you earn £40,000, you might be offered a mortgage of £160,000–£180,000. With a 10% deposit on a £200,000 property (£20,000), that means a £180,000 mortgage — just within range.
The numbers to know before you start
- Your gross annual income — the figure lenders use to calculate maximum lending
- Your monthly outgoings — lenders stress-test your budget carefully since 2022
- Your credit score — check for free at Experian, Equifax, or ClearScore before applying
- Any existing debts — car finance, credit cards, and student loans all affect affordability
Step 2 — Save your deposit
The minimum deposit for most mortgages is 5% of the purchase price. But the sweet spots for interest rates are at 10% and 15% — lenders price their rates based on LTV (loan-to-value), and the more you put in, the better the rate you'll get.
On a £250,000 property:
- 5% deposit = £12,500 — access to limited deals, higher rates
- 10% deposit = £25,000 — much wider choice, significantly better rates
- 15% deposit = £37,500 — competitive rates from most high street lenders
The Lifetime ISA (LISA) — use it
If you're between 18 and 39, a Lifetime ISA is one of the most effective savings tools available. You can save up to £4,000 per year and the government adds a 25% bonus — that's up to £1,000 free money annually. The funds must be used for a first home purchase (property price limit: £450,000) or retirement.
Step 3 — Get a Mortgage in Principle (MIP)
A Mortgage in Principle (also called an Agreement in Principle or Decision in Principle) is a written statement from a lender saying they'd be willing to lend you a specific amount, subject to a full application and property valuation.
You do not need one to view properties, but having one makes you look like a serious buyer to estate agents and sellers. In competitive markets it can be the difference between having your offer accepted and losing out.
Broker vs direct — which to use?
A whole-of-market broker searches deals from banks, building societies, and specialist lenders that you can't access directly. For most first-time buyers, this finds better deals than going direct to one bank. The best brokers charge no fee — they're paid by the lender.
Step 4 — Find a property
Rightmove and Zoopla are the two main property portals. Set up email alerts for your target area, price range, and bedroom count — properties in popular areas go quickly.
What to check at viewings
- Phone signal and broadband speed (check Ofcom's coverage checker)
- Which direction the garden faces (south-facing = more sun)
- Water pressure — turn on a tap
- Age of the boiler — older than 10 years may need replacing
- Loft — is it insulated? Is there space to convert?
- Parking — is it included or is there a waiting list?
- Neighbours — visit at different times of day
Step 5 — Make an offer
Always make your first offer below asking price unless the property has been on the market for fewer than two weeks in a hot market. Check what similar properties have sold for on Rightmove (sold prices are public) and use that as your anchor.
When making an offer, state clearly: your deposit size, that you have a mortgage in principle, whether you're a chain-free first-time buyer (this is a significant advantage), and your desired timeline for completion.
Negotiating tactics
- Ask the agent to confirm acceptance in writing before instructing a solicitor
- Don't reveal your maximum budget to the agent — they work for the seller
- If an offer is rejected, ask what figure would be accepted
- A survey finding issues is legitimate grounds to renegotiate
Step 6 — Appoint a solicitor or conveyancer
Conveyancing is the legal process of transferring property ownership. You'll need either a solicitor or a licensed conveyancer — both can do the job, and licensed conveyancers often charge less.
Get at least three quotes. Costs typically range from £1,500 to £3,000 including searches, Land Registry fees, and transfer costs. Cheaper isn't always better — slow conveyancers can cost you sales.
Step 7 — Survey and formal mortgage offer
Never skip a survey. A mortgage lender's valuation only confirms the property is worth what you're paying — it is not a survey of the building's condition. For an older property, a Level 3 Building Survey (formerly a Structural Survey) is almost always worth the cost.
Survey types
- RICS Level 1 (Condition Report) — £400–£500. Basic. Only suitable for new builds.
- RICS Level 2 (HomeBuyer Report) — £500–£800. Good for standard properties in reasonable condition.
- RICS Level 3 (Building Survey) — £700–£1,500. Full structural inspection. Essential for older, unusual, or extended properties.
If the survey reveals issues, you have three options: proceed as planned, renegotiate the price, or walk away. Walking away costs you your solicitor's fees to date (typically £300–500) but can save you from a very expensive mistake.
Step 8 — Exchange and completion
Exchange of contracts is the legally binding moment. Both parties sign and exchange contracts, and you pay a deposit (typically 10% of the purchase price) which you lose if you pull out after this point. The seller cannot pull out either.
Completion is when the remaining money transfers and you get the keys. This can happen on the same day as exchange, but is typically 1–4 weeks later.
Full cost breakdown
- Stamp duty: £0–£6,250+ depending on price and buyer type. Calculate yours →
- Solicitor/conveyancer: £1,500–£3,000 including searches and Land Registry
- Survey: £400–£1,500 depending on type and property size
- Mortgage arrangement fee: £0–£2,000 (many lenders offer fee-free products)
- Mortgage broker fee: £0 if using a fee-free whole-of-market broker
- Buildings insurance: £150–£400/year depending on property and location
- Moving costs: £300–£2,000 depending on distance and volume
- Total extra budget needed: £3,000–£12,000 on top of deposit
Common first-time buyer mistakes
- Not getting a survey — the mortgage valuation is not a survey. Never skip it.
- Overextending on the mortgage — rising interest rates have caught many buyers out. Budget for rates 2–3% higher than today.
- Using the agent's recommended solicitor without comparing — see above.
- Forgetting about ongoing costs — service charges, ground rent (leasehold), boiler cover, general maintenance. Budget 1% of property value per year for maintenance.
- Not checking the lease length on flats — anything below 80 years is problematic for mortgages and resale. Check the lease length before making an offer.
- Panicking in a slow market — if you're buying to live in and your finances are solid, timing the market matters less than being ready when the right property appears.