Free guide
The First-Time Buyer Guide
Everything you need to go from saving a deposit to collecting your keys, in seven clear steps, with a checklist for each one. Read it here or download the PDF to keep.
Step by step
Buying your first home
Every purchase is different, but most follow these stages. We can guide you through each one.
Work out your budget
Start with what you can comfortably afford each month, not just the largest loan a lender might offer. Remember the costs of buying as well as the deposit.
- Use our borrowing calculator for a first estimate
- Add up your regular monthly spending and commitments
- Budget for stamp duty (first-time buyers pay none up to £300,000 in England and Northern Ireland)
- Allow for legal fees, a survey, moving costs and furnishing
Save your deposit
Most lenders need a deposit of at least 5% of the price. A larger deposit can mean more lenders and lower rates.
- Decide on a target deposit and a date to reach it
- Keep savings in an account you can show statements for
- If family are helping, a gifted deposit letter will be needed
- Ask us about schemes and lenders for low-deposit buyers
Get your paperwork ready
Having documents ready keeps your application moving once you find a home.
- Photo ID and proof of address
- Your last three months' payslips, or two to three years' accounts or SA302s if self-employed
- Your last three months' bank statements
- Proof of where your deposit has come from
Check your credit file
Lenders look at your credit history, so check it early and fix anything that is wrong before you apply.
- Check your report with the main credit reference agencies
- Register on the electoral roll at your current address
- Avoid new credit applications in the months before you apply
- Keep up all existing payments on time
Get an agreement in principle
An agreement in principle shows estate agents and sellers that a lender is likely to lend you a certain amount.
- Speak to a mortgage broker before you start viewing
- Get an agreement in principle from a suitable lender
- Keep it to hand when you make an offer
Find a home and make an offer
Once your offer is accepted, your broker submits the full mortgage application.
- Instruct a conveyancing solicitor
- Choose a survey suited to the property
- Send your documents to your broker promptly
- Think about life insurance and other protection for your new home
Mortgage offer to completion
After the lender's valuation and checks, you receive a mortgage offer. Your solicitor then handles exchange and completion.
- Read your mortgage offer carefully and ask about anything unclear
- Arrange buildings insurance from exchange of contracts
- Transfer your deposit and costs to your solicitor before completion
- Collect your keys on completion day
Your home may be repossessed if you do not keep up repayments on your mortgage.