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First-time buyer guide

Buying your first home is a big step wrapped in unfamiliar words. Here’s the whole journey in plain English — from budget to keys, and what it all costs.

Buying your first home is one of the biggest financial steps you’ll take, and it comes wrapped in unfamiliar jargon. This guide walks the whole journey in plain English — from working out your budget to picking up the keys — so you know what’s coming and roughly what it costs.

1. Work out what you can really afford

Lenders typically offer around four to four-and-a-half times your annual income, but the amount a bank will lend and the amount you can comfortably live with are two different numbers. Build your own budget first: the monthly mortgage payment, plus council tax, energy, water, insurance, broadband, travel, and a buffer for the boiler that breaks in year one.

Tip If the monthly cost of owning would leave you unable to save anything at all, the property is probably at the top of your range, not the middle of it.

2. Save your deposit

Most first-time buyers aim for at least 5–10% of the price. The bigger your deposit, the lower the loan-to-value, and the better the mortgage rates you’ll be offered — the jump in available deals between a 5% and a 10% deposit is usually significant.

3. Get a mortgage agreement in principle

An agreement in principle (AIP) is a lender’s indication of what they’d lend you, based on a soft check. It tells you your realistic budget and shows estate agents and sellers you’re a serious buyer. A good mortgage broker can compare deals across lenders, handle the paperwork, and flag anything in your finances that might trip up the full application.

4. Find the right home — and check it properly

This is where first-time buyers most often get caught out. A home can show beautifully and still sit on a rat-run, back onto a planned development, sit in a flood-risk pocket, or simply be priced above what the street actually achieves. The glossy photos and a 20-minute viewing can’t tell you any of that.

Before you fall for somewhere, check the address: what the road is like, how it scores for safety and schools, whether there’s environmental risk, and what similar homes nearby have actually sold for. It’s far cheaper to find out before you offer than after.

5. Make your offer

6. Survey, searches and the legal stage

Once your offer is accepted, two things run in parallel. Your conveyancer handles the legal side — checking the title, running searches, and preparing contracts. A surveyor checks the building’s physical condition; for most homes a Level 2 (HomeBuyer) survey is the sensible middle option, with a full Level 3 building survey for older or unusual properties.

Tip A survey that flags £8,000 of roof work is not bad news — it’s a negotiating tool. Buyers routinely renegotiate the price or ask the seller to fix issues a survey uncovers.

Costs to budget for beyond the deposit

Build these into your plan from the start so the keys don’t come with a nasty surprise on top of the deposit you’ve worked so hard to save.

Before you offer, check the property

MoveWizard assesses any UK address — road, amenities, schools, safety, environment and a fair offer range — so you buy with your eyes open.

Check a property — free

Frequently asked questions

How much deposit do I need as a first-time buyer?

Most first-time buyers aim for at least 5–10% of the property price. A larger deposit lowers your loan-to-value and unlocks better mortgage rates, so saving even a little more can noticeably reduce your monthly payments.

Do first-time buyers pay stamp duty?

First-time buyers often pay a reduced rate or nothing up to a threshold, but the figures change, so check the current Stamp Duty Land Tax rules before you budget.

What is an agreement in principle?

It is a lender’s indication of what they would lend you based on a soft credit check. It tells you your realistic budget and shows sellers you are serious, but it is not the same as a full mortgage offer.