Buying your first home is an exciting period in your life. You’re climbing onto the housing ladder with building equity and control over decorating and renovations. However, it can be a complex process, with several factors to consider.
Below, we’ll walk you through the essential decisions and steps to help you prepare for homeownership.
Setting Your Budget and Understanding Affordability
Before looking at homes, you need a clear picture of how much you can afford. Consider your monthly income after taxes and your existing debts to calculate how much you’re able to put down as a deposit.
Nearly all homes require a minimum deposit of 5% of their total value. The median deposit value in March 2025 was £48,350 for first-time home buyers, with a median property value of £370,500 and a mortgage term of 30 years. Many lenders offer affordability calculators to help you estimate your loan availability.
Choosing the Right Mortgage for You
Your mortgage will likely be your life’s biggest financial commitment, so you must research and compare different offers before rushing in. Improving your credit score and having a deposit of over 5% will increase your chances of getting a more favourable mortgage deal.
There are several types of mortgages available to first-time homebuyers in the UK. Fixed-rate mortgages offer stable monthly payments, typically lasting two to five years, with set interest rates locked in when you buy. You’ll benefit from the stability, but if interest rates fall, you won’t benefit from lower repayments until your fixed period ends.
Standard variable-rate mortgages have interest rates set by the lender and may fluctuate based on the Bank of England’s base rate. These are more flexible but can quickly become expensive. The government’s Mortgage Guarantee Scheme has made 95% mortgages widely available from building societies and major banks, making it easier to build a deposit. Bear in mind that they come with a higher interest rate and greater risk of negative equity.
Understanding the Costs Beyond the Purchase Price
In addition to the deposit, you’ll have to factor in various other costs. Surveys, mortgage arrangement costs, stamp duty, solicitors’ fees, and home insurance can quickly add up if you don’t plan your budget accordingly.
Stamp duty will be the most expensive non-deposit cost of buying your home. If the property is under £300,000, you won’t need to pay it, but for more expensive areas like London and the South East, you may struggle to find properties in that price range. Homes priced from £300,001 and £500,000 are subject to a 5% stamp duty rate.
Ensuring Your Home Is Well-Connected
High-speed internet is crucial if you work from home. You’ll benefit from improved video calls with colleagues on online meetings and faster download and upload times for files and software, making your work more efficient.
The whole family will enjoy smoother streaming without buffers and interruptions, lower latency, and higher frame rates when gaming with friends. Check the broadband options available in areas you’re considering before committing to a home to save you the inconvenience of slow connectivity.
The Final Steps: Survey, Offer, and Exchange
Once you’ve settled on your preferred home, you’ll need a full survey to determine whether the property is in good condition. Surveys are conducted by surveyors accredited by Rics, the Royal Institution of Chartered Surveyors, Sava or the Residential Property Surveyors Association (RPSA).
Once the survey is complete, you can negotiate the price. Pull out of the sale if there are major issues that will require costly repairs. You can negotiate a reduced price if the survey identifies minor issues before eventually exchanging contracts.
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