A Step by Step guide for First Time Buyers without the Bank Jargon

Step 1: Saving for a Deposit

Before you start looking for a property, you’ll need to save for a deposit. This is one of the hardest parts of the process, so if you have already been saving hard to get your deposit together well done. Your deposit is the upfront amount you contribute towards the purchase price of your home.

• Most mortgage lenders require at least 5% to 10% of the property’s value as a deposit.
• A larger deposit (e.g., 15% or 20%) can give you access to better mortgage with lower interest rates.
• Government schemes such as the Lifetime ISA (LISA) or First Homes Scheme may help you save or reduce costs.

When it comes to your deposit most lenders will also accept a gift from a family member or some lenders even a friend which can make up some or all your deposit.

Step 2: Budgeting for Additional Costs

A mortgage isn’t the only expense when buying a home. You also need to budget for:

• Household bills such as council tax, energy, water, broadband, etc.
• Solicitor/conveyancer fees typically between £1000-£1800 depending on the firm.
• Mortgage arrangement or product fees.  Some lenders may charge a fee for setting up your mortgage, sometimes these fees can be added to the mortgage others may need to be paid upfront.
• Survey costs although this is optional, depending on the property you’re buying it can be good to check the property’s condition before you exchange contracts. (£250–£1,500 depending on the level of survey).
• Stamp Duty – First-time buyers in England don’t pay this on properties up to £300,000 from 1^st April 2025.

It is so important to be aware of additional costs and think about your monthly budget when house hunting and looking at taking out your first mortgage. Although the lender may say your mortgage is affordable ultimately it is you that is paying it each month and you want to make sure you can still have a life, whether that’s going on holidays, or take aways, treats for the kids etc. The last thing you want is to be in position where all you are doing is working to pay the bills.

Step 3: Getting a Mortgage Agreement in Principle/Decision In Principle (AIP/DIP)

Before you start house hunting, it’s a good idea to get a Mortgage Agreement in Principle (AIP), also called a Decision in Principle (DIP).

• This is a document from a lender stating how much they may be willing to lend you.
• It’s not a guaranteed mortgage offer but shows sellers and estate agents that you’re a serious buyer.
• You can get an AIP online, through a mortgage broker, or directly from a lender.

A decision in principle through most lenders will be a soft check on your credit file, this means it does not leave a mark on your report.  It gives you a great indication that you should be able to get a mortgage and with which lender.  When your ready to put an offer on a property you would like to buy, the Estate Agent will always ask for your decision in principle along with your proof of deposit, to evidence to the seller that you are good for the funds.

Step 4: Finding the Right Property

Once you have your deposit saved and an AIP, you can start searching for your ideal home.

• Use websites like Rightmove, Zoopla, and OnTheMarket to browse properties, along with estate agents websites and also a lot of estate agents have started advertising properties on social media.
• Visit estate agents in your preferred area to register your interest.
• Arrange viewings through the estate agents to assess properties in person.
• Ask about the seller’s situation – are they in a chain? Do they need a quick sale?

When looking for your first home, think about the location, where would you like to live, close to work, family or friends. You can have more than one viewing on a property your interested in and you can take a family member or friend with you. Ask the estate agent lots of questions about the seller’s position, about the property, how long it has been on the market and express any concerns. Also, a Top Tip if your planning on moving to a new location, take a trip to the area at different times in the day and week and check out the local amenities and if they are around have a chat with the neighbours and locals about the area.

Step 5: Making an Offer

When you find a property you like, it’s time to make an offer.

• Contact the estate agent and let them know the price you’re willing to pay.
• If your offer is accepted, you’ll receive a memorandum of sale this is a document confirming the sale price and details of both yours and the sellers’ solicitors, usually the estate agents and the full address of the property.
• Offers are not legally binding until contracts are exchanged later in the process.

It is at this stage the estate agent will want to see your Decision in Principle, proof of deposit and normally your ID. You will also need to have a solicitor/conveyancer at this point and the estate agents will ask for their details. 

Step 7: Instructing a Solicitor or Conveyancer

A solicitor or conveyancer will handle the legal aspects of buying your home, including:

• Conducting property searches to check for legal or environmental issues.
• Reviewing the contract and liaising with the seller’s solicitor.
• Arranging for exchange of contracts and completion.

When looking for a good solicitor I would always recommend getting a few quotes from different solicitors and ask for recommendations and check for reviews.   You can not purchase a property in the UK without a solicitor and a good one is worth their weight in gold, don’t be afraid to ask questions as its so important you understand the work they are doing and your voicing any concerns you have.

Step 6: Submitting a Full Mortgage Application

Now that your offer is accepted and your solicitor has been instructed, you are now ready to submit a full mortgage application.

• You’ll provide details of your income, outgoings, employment, and credit history.
• Your lender will arrange a valuation survey to check the property’s worth.
• A mortgage underwriter will assess your application and decide whether to approve your loan.

This stage is to produce your mortgage offer and can take around 2-6 weeks depending on the lender. You can apply for your mortgage either yourself directly with the lender, in the branch, online or over the phone. Or you can use a Mortgage Broker which they will apply and do a lot of the hard work for you. There are pros and cons with both, going directly to the lender means you will not pay a broker’s fee however it does mean you will be doing a lot of the work yourself and may not be getting the most suitable product for your needs. A broker will search the market to find you the most suitable product, they can advise you throughout the process and take a lot of the work away from you as they will apply, chase and speak with the lender to produce your offer.  Some brokers will not charge a fee and others will, the fee will vary depending on the location or type of mortgage you’re applying for. If you are going with a broker its important you know the fees upfront and again it can be worth shopping around to make sure you have the right person working for you.

Step 8: Arranging a Property Survey

Having your own survey done is optional, but I recommend having a survey done before committing to the purchase, especially if the property is older or you have any concerns.

• Basic valuation (often arranged by the lender) – checks the property’s value.
• Level 2/Homebuyer’s report (£400–£700) – highlights potential issues like damp or structural movement.
• •Level 3/Full structural survey (£600–£1,500) – a detailed inspection, useful for older properties.

If any serious issues are found, you may be able to renegotiate the price or request repairs. Usually, the price of a survey is dependant on the purchase price, and you can get more specialised surveys that focus on a certain area such as damp or checking the electrics and gas.

Step 9: Setting Up Your Protection

Having the right protection in place is as important as having the mortgage.  At this stage its good to get some quotes and look at your protection options, if you are doing your mortgage through a Broker, they should cover this with you and go through your options and quotes.  If you are doing your mortgage yourself, you could get some advice through a protection advisor or do some research online.

• Mortgage Protection will pay a lump sum to repay your mortgage if you die within the mortgage term, meaning your family will not lose their home.
• Income Protection will cover a % of your income if you were unable to work to due sickness or an accident.
• Critical Illness similar to mortgage protection it pays a lump sum which can be used to repay your mortgage, to help with specialist treatments or support you with an income if you have a Critical Illness such as Cancer, Stroke or a Heart Attack.

With protection insurance it isn’t about expecting the worst—it’s about being prepared. Just as you would insure your cars or mobile phone, it makes sense to protect your income, health, and loved ones too. The right protection policy ensures that no matter what happens, you and your family can maintain financial stability.

Step 10: Exchanging Contracts

Once your solicitor is satisfied with all the checks, you’ll be ready to exchange contracts.

• You’ll pay your deposit (usually 5–10% of the purchase price) at this stage.
• Both you and the seller will sign legally binding contracts.
• A completion date is agreed upon, usually a few weeks later.

After exchange, neither party can back out without serious financial penalties.  It is at this stage you need to have your Buildings Insurance in place and your solicitor will often ask for proof of this, as this property is to be your home I would always advise to look at contents cover as well to cover your belongings in case of a fire or theft.

Step 11: Completion & Moving In

Yipppeee you are about to become a homeowner and get the keys. On completion day, your mortgage lender will transfer the remaining funds to the seller’s solicitor, and you’ll officially own the property.

• You’ll receive the keys (usually via the estate agent).
• Your solicitor will register you as the new owner with the Land Registry.
• Its time to move in and celebrate!

This is it you are now the proud owner of your first home, which is such a fantastic achievement, and you should be very proud as you have taken your first step onto the property ladder. One of the first things I remember when moving into my first home is all the things I took for granted at my parents, I remember going to make dinner and realising I didn’t have a cheese grater, or the right pots and pans, but it doesn’t matter its your property and you make do (well I think I ended up getting a take away) and slowly you will build it into being an amazing home.

Final Tips for First-Time Buyers

• Use a mortgage broker – they can help you find the best mortgage deal for your situation.
• Check your credit score before applying for a mortgage.
• Be realistic about your budget – don’t overextend yourself financially.
• Factor in unexpected costs – homeownership can come with surprises.
• Don’t rush – take your time to find the right property and mortgage deal.

Buying your first home is a big step, but with the right preparation and the right people supporting you, it can be a smooth and rewarding process.  If you have any questions or would like to have a chat with one of the team about buying your first property, please get in touch.

Good Luck and Happy House Hunting

I hope you found this guide helpful,

Emma