How to buy your first home in the UK

Work out what you can really afford

Before you look at a single listing, get clear on the number. Most lenders will offer roughly four to four-and-a-half times your annual income, but what you can borrow and what you can comfortably repay are two different things.

The monthly mortgage payment is only part of the cost of owning. Budget for council tax, buildings and contents insurance, maintenance, and — on most flats — a service charge and ground rent. A home that looks affordable on the mortgage alone can be a stretch once the rest is in.

Save the deposit — and the costs around it

A 10% deposit unlocks far better mortgage rates than 5%, and 15–20% better still. But the deposit is not the only cash you need up front.

Set money aside for the costs that land around completion:

• Stamp duty (SDLT) in England and Northern Ireland — with first-time-buyer relief up to £500,000, you pay nothing on the first £300,000.
• Legal and conveyancing fees, usually £1,000–£2,000 plus search fees.
• A survey — from a basic condition report to a full structural survey on an older home.
• Mortgage arrangement and valuation fees, and removal costs on moving day.

Get a mortgage agreement in principle

An agreement in principle (AIP) is a lender's indication of how much they would lend you, based on a soft credit check. It is not a formal offer, but estate agents and sellers take your offer far more seriously when you have one.

You can go directly to a lender or use a mortgage broker. A broker compares the whole market and handles the paperwork; going direct can occasionally reach deals brokers cannot. Either way, get the AIP before you start making offers.

Search, view, and make an offer

When you find the right place, you make an offer through the estate agent, who passes it to the seller. The agent acts for the seller — that is their job — so treat the asking price as a starting point and decide your ceiling in advance.

In England and Northern Ireland an accepted offer is not legally binding until contracts are exchanged, which can be weeks later. That gap is where a sale can fall through or another buyer can gazump you. It is frustrating, but it is the system — moving quickly and staying in touch is how you protect a deal.

From offer to keys: the legal bit

Once your offer is accepted, your conveyancer takes over. They run local searches, check the title, and — if the home is leasehold — review how many years are left on the leasehold, the ground rent, and the service charge. Freehold means you own the building and the land; leasehold means you own the property for a fixed number of years.

Exchange of contracts is the moment the sale becomes binding and you pay your deposit. Completion, usually a week or two later, is when the money moves and you get the keys. From offer to completion typically takes two to three months — sometimes longer in a chain.

Should you buy at all yet?

Buying rewards staying put. The up-front costs — stamp duty, legal fees, the deposit you tie up — take years to earn back, so if you might move within two or three years, renting can leave you better off. Run your own numbers before you commit; the maths depends on your deposit, the rates on offer, and how long you will stay.

Questions, answered

How much deposit do I need to buy a home?

The minimum is usually 5% of the price, but 10% or more opens up noticeably better mortgage rates. On a £300,000 home, 10% is £30,000 — and you will need extra on top for stamp duty, legal fees, and a survey.

What is the difference between freehold and leasehold?

Freehold means you own the property and the land it sits on outright. Leasehold means you own the property for a set number of years and usually pay ground rent and a service charge to the freeholder. Most houses are freehold; most flats are leasehold — always check how many years remain.

Is my offer legally binding once it is accepted?

Not in England and Northern Ireland. An accepted offer becomes binding only when contracts are exchanged, which is typically several weeks later. Until then either side can walk away, which is why exchange matters so much. (Scotland works differently — an accepted offer is binding much earlier.)

How long does buying a home take?

Allow two to three months from an accepted offer to completion for a straightforward purchase. Chains, leasehold checks, and mortgage delays can push that out, so build in some slack when you plan your move.