First-Time Buyer: Where Do You Begin?

Published 23 October 2026

The below article has information contained within that was correct at the time of publication but is subject to change. This is for information purposes only and does not constitute advice.

First-Time Buyer: Where Do You Begin?

Written by Doug Miller, Director at Lansdown Financial Services.

Doug Miller is a mortgage broker and co-founder of Lansdown Financial Services, based in Bath, quoted in 30+ news articles including the Guardian, Sky News, This is Money and the Sun.

Buying your first home is exciting. Working out where to begin can feel a little less straightforward.

How much can you borrow? How big a deposit do you need? Should you start viewing properties first or arrange a mortgage? And what exactly is an Agreement in Principle?

These are questions we hear from first-time buyers every day.

The best place to start is by understanding what you can realistically afford before seriously looking at properties.

You don’t need to have found a home or know which mortgage lender to approach before speaking to a mortgage adviser.

Getting your finances organised early can help you establish your budget, understand your mortgage options and put you in a stronger position when the right property comes along.

Key Points: The Short Version

Don’t have time to read the full article? Here are the six key things you need to know.

• Start with your mortgage budget: Understand how much you could potentially borrow based on your income, deposit and financial commitments before seriously viewing properties.
• You may only need a 5% deposit: Some lenders offer mortgages at 95% loan-to-value, although a larger deposit can provide access to different rates and products.
• Don’t forget the additional costs: Solicitor fees, surveys, mortgage fees, insurance and moving expenses all need to be considered alongside your deposit.
• Check your credit history: Make sure the information on your credit reports is accurate before applying for a mortgage.
• Arrange a Mortgage in Principle: Also called an Agreement in Principle (AIP), this gives you an initial indication of what a lender may be prepared to lend.
• Get mortgage advice before finding a property: Understanding your borrowing potential early can help you avoid making offers on homes that aren’t affordable.

The bottom line: You don’t need to understand the entire homebuying process before getting started. Establish your budget, review your deposit, speak to a mortgage adviser and arrange a Mortgage in Principle where appropriate. You can then start searching for your first home with greater confidence.

The Full Guide: Where to Start When Buying Your First Home

Want to understand the detail? Below, we explain the practical steps involved in buying your first home, from working out your budget to making an offer, arranging a mortgage and eventually collecting your keys.

In This Guide

• Work out how much you could borrow
• Understand your deposit requirements
• Budget for the additional costs
• Check your credit history
• Arrange a Mortgage in Principle
• Start viewing properties
• Make an offer and apply for your mortgage
• Understand surveys and conveyancing
• Exchange contracts and complete your purchase
• Frequently asked questions

Step 1: Work Out How Much You Could Borrow

Before spending every evening searching for properties, it’s worth establishing a realistic mortgage budget.

Mortgage lenders assess affordability by considering your income alongside your regular expenditure, existing debts and other financial commitments.

However, different lenders use different affordability calculations.

Two lenders could therefore look at exactly the same first-time buyer and reach different conclusions about how much they’re prepared to lend.

This becomes particularly relevant if you receive bonuses, commission or overtime, are self-employed or have recently changed jobs.

How Do You Calculate Your Property Budget?

Your starting point is understanding how much mortgage borrowing may be available and adding the deposit you’re comfortable using.

For example:

Your finances	Amount
Potential mortgage borrowing	£225,000
Available deposit	£25,000
Indicative property budget	£250,000

Illustrative example only. Actual mortgage borrowing depends on lender criteria and affordability. Purchase costs also need to be budgeted for separately.

Online mortgage calculators can provide a useful starting point, but they won’t necessarily reflect the full range of lenders or how your circumstances would be assessed.

At Lansdown Financial Services, we’ll review your income, deposit and commitments to establish what borrowing may realistically be available.

How Much Can You Borrow vs How Much Should You Borrow?

This is an important distinction.

Just because a lender is prepared to offer you a particular mortgage amount doesn’t automatically mean borrowing the maximum is right for you.

Once you own a home, you’ll have expenses beyond your monthly mortgage payment.

Council Tax, energy bills, buildings insurance, maintenance and unexpected repairs all need to be considered.

We’d want your mortgage to work comfortably alongside your everyday life, rather than simply passing a lender’s affordability calculation.

Step 2: Understand How Much Deposit You Need

Your deposit is the money you contribute towards purchasing the property.

The remainder is normally funded by your mortgage.

First-time buyer mortgages can be available with deposits as small as 5%, subject to the lender’s requirements.

For example, if you’re purchasing a home costing £250,000:

Deposit	Amount needed	Mortgage required
5%	£12,500	£237,500
10%	£25,000	£225,000
15%	£37,500	£212,500
20%	£50,000	£200,000

The percentage of the property’s value you’re borrowing is called the loan-to-value ratio, usually shortened to LTV.

A larger deposit reduces your LTV and can potentially give you access to a wider range of mortgage products or more competitive interest rates.

However, don’t assume you need to save 10%, 15% or 20% before it’s worth speaking to a mortgage adviser.

If you’ve already saved a 5% deposit, it’s worth understanding the options available.

Can Your Parents Help with Your Deposit?

Yes, potentially.

Gifted deposits from parents and other family members are common among first-time buyers.

Mortgage lenders usually require confirmation of where the money has come from and whether it is a genuine gift rather than a loan that needs repaying.

Your solicitor will also need to complete appropriate source-of-funds checks.

If someone is helping with your deposit, tell your mortgage adviser early so the lender’s gifted-deposit requirements can be considered.

Step 3: Budget for the Other Costs of Buying a Home

One mistake first-time buyers can make is putting every penny they’ve saved into their deposit.

Although a larger deposit can be useful, buying a property involves other expenses.

You’ll also want some money available after completion for furniture, decorating, repairs and unexpected costs.

First-Time Buyer Costs Checklist

Expense	What to budget for
Deposit	Usually at least 5% of the purchase price for eligible low-deposit mortgages.
Solicitor or conveyancer	Legal work, searches and associated charges.
Property survey	An independent assessment of the property’s condition, where appropriate.
Mortgage fees	Product and valuation fees where applicable.
Stamp Duty	Depends on the property price, location and your eligibility for relief.
Buildings insurance	Usually required by the mortgage lender from the appropriate point in the purchase.
Removals and moving costs	Transport, storage and other practical moving expenses.
Emergency savings	Money for maintenance, repairs and unexpected household costs.

If increasing your deposit could secure a better mortgage, we’ll compare the potential benefit against the amount of savings you would have left.

It’s important to make that decision based on the overall financial picture.

Do First-Time Buyers Pay Stamp Duty?

In England and Northern Ireland, qualifying first-time buyers currently pay no Stamp Duty Land Tax on the first £300,000 of a property costing £500,000 or less.

They then pay 5% on the portion between £300,001 and £500,000.

If the property costs more than £500,000, first-time buyer relief doesn’t apply.

Different property taxes and rules apply in Scotland and Wales.

Your solicitor can confirm the amount payable for your particular purchase.

Step 4: Check Your Credit History

Before applying for a mortgage, it’s sensible to check your credit reports.

Mortgage lenders consider your credit history alongside your income, expenditure and wider circumstances.

Checking your reports gives you an opportunity to identify any inaccurate information before making an application.

However, you don’t necessarily need a perfect credit score to obtain a mortgage.

An old missed payment or previous credit issue doesn’t automatically prevent you from buying your first home.

The type of issue, amount involved and how recently it occurred can all influence how lenders assess it.

Different lenders also have different credit criteria.

Our advice: If there’s something on your credit report you’re concerned about, discuss it with your mortgage adviser before submitting applications.

That allows us to consider which lenders may be appropriate rather than making speculative applications.

Step 5: Speak to a Mortgage Adviser and Get an Agreement in Principle

One of the most useful things you can do before seriously viewing properties is speak to a mortgage adviser.

You don’t need to have found a property.

We’ll assess your likely borrowing, discuss your deposit, explain potential monthly repayments and identify lenders whose criteria may suit your circumstances.

Where appropriate, we can also arrange an Agreement in Principle.

What Is an Agreement in Principle?

An Agreement in Principle, also known as a Mortgage in Principle (MIP) or Decision in Principle (DIP), is an initial indication of how much a lender may be prepared to lend.

It’s based on preliminary information and checks.

Having one can help you understand your property budget and demonstrate to estate agents that you’ve started arranging your mortgage finances.

However, it isn’t a formal mortgage offer and doesn’t guarantee that your eventual application will be approved.

The lender will still need to assess your full application and the property you’re purchasing.

For more information, read our separate guide: How to Get a Mortgage in Principle.

Step 6: Start Searching for Your First Home

Once you understand your budget and mortgage options, you can begin seriously viewing properties.

You may already have a particular location or property type in mind.

However, it’s worth thinking carefully about what matters most.

Consider the property’s condition, location, commuting requirements, running costs and whether it suits your future plans.

Freehold vs Leasehold: What’s the Difference?

You’ll encounter these terms when looking at properties.

Freehold generally means you own the property and the land it stands on.

Leasehold means you own an interest in the property for the period specified in the lease, while someone else owns the freehold.

Flats are commonly leasehold.

If you’re considering a leasehold property, the length of the lease, service charges, restrictions and other obligations can be important.

Your solicitor will investigate the legal position, while your mortgage adviser can consider whether the property meets the lender’s requirements.

Do You Need a Mortgage Before Viewing Houses?

You don’t need a formal mortgage offer before viewing properties.

In fact, the full mortgage application will normally take place once you’ve found a property and had an offer accepted.

However, understanding your borrowing position beforehand can help you avoid wasting time viewing homes outside your realistic budget.

Step 7: Make an Offer on a Property

Once you’ve found a property you’d like to buy, you’ll normally make an offer through the estate agent.

Being a first-time buyer can sometimes be attractive to a seller because you don’t have an existing property to sell.

This means you’re generally not part of a chain on the sale of your own home.

Having an Agreement in Principle can also demonstrate that you’ve already taken steps to organise your finances.

However, it doesn’t guarantee that your offer will be accepted.

If your offer is accepted, you’ll move onto the mortgage application and conveyancing stages.

Step 8: Apply for Your Mortgage

Once you’ve had an offer accepted, we’ll review the mortgage options available based on the actual property price, deposit and amount you need to borrow.

Mortgage rates and products can change, so we won’t automatically assume the lender used for your Agreement in Principle is still the most suitable option.

We’ll compare suitable mortgages, considering interest rates, product fees, early repayment charges, overpayment rules and overall borrowing costs.

Once you’ve agreed to proceed, the full mortgage application can be submitted.

What Documents Will You Need?

The lender may ask for documents including payslips, bank statements, proof of identification and evidence of your deposit.

If you’re self-employed or receive income from several different sources, additional evidence may be required.

The lender will then assess the application through its underwriting process.

What Is a Mortgage Valuation?

The lender will also need to establish that the property provides acceptable security for the mortgage.

This usually involves a mortgage valuation, which may be completed automatically, remotely or through a physical inspection.

One important distinction is that the lender’s valuation isn’t necessarily a detailed survey of the property’s condition.

Depending on the age and condition of the property, you may also want to arrange an independent property survey.

Step 9: Instruct a Solicitor or Conveyancer

While your mortgage adviser deals with the mortgage application, your solicitor or licensed conveyancer handles the legal process of buying the property.

Their responsibilities generally include carrying out searches, reviewing the legal title, investigating relevant property documents and communicating with the seller’s solicitor.

They’ll also deal with contracts and the financial arrangements needed to complete the purchase.

If you’re buying a leasehold property, they’ll investigate the lease and relevant obligations.

You can start researching solicitors before finding a property, so you’re ready to instruct one when your offer is accepted.

Step 10: Receive Your Mortgage Offer

Once the lender is satisfied with your affordability, supporting documentation and the property itself, it can issue a formal mortgage offer.

This is an important milestone because it confirms the mortgage the lender is prepared to provide, subject to the conditions of the offer.

However, it doesn’t mean the purchase has completed.

Your solicitor still needs to finish the legal work before contracts can be exchanged.

It’s also important to avoid making significant financial changes without speaking to your mortgage adviser.

For example, taking out substantial new credit during the purchase could affect your affordability or mortgage application.

Step 11: Exchange Contracts and Complete Your Purchase

Once the mortgage offer has been issued and the legal work is ready, the transaction moves towards exchange and completion.

These are two important stages of buying a property.

What Is Exchange of Contracts?

In England and Wales, exchange of contracts is normally the point at which the purchase becomes legally binding.

Your solicitor will explain the requirements and arrange the exchange once everything is ready.

The process differs in Scotland, where the legally binding stage involves concluding missives.

What Is Completion?

Completion is the day the property purchase is finalised.

Your solicitor or conveyancer arranges the transfer of the money required to purchase the property.

Once the transaction is completed, you’ll normally be able to collect the keys and move into your new home.

After weeks or months of mortgage applications, property searches and legal paperwork, this is the moment you’ve been working towards.

You’ve bought your first home.

First-Time Buyer Process: At a Glance

Here’s a summary of the main stages involved.

Stage	What you should do
1. Understand your budget	Establish your likely borrowing potential and comfortable monthly repayments.
2. Review your deposit	Understand how much you’ve saved and what mortgage options it could provide.
3. Budget for costs	Allow for legal fees, surveys, insurance and moving expenses.
4. Check your credit history	Review your credit reports before applying.
5. Get an Agreement in Principle	Obtain an initial borrowing indication from a suitable lender.
6. Find a property	Search, view and make an offer within your budget.
7. Arrange your mortgage	Submit the full application after your offer is accepted.
8. Complete the legal process	Your solicitor handles conveyancing, exchange and completion.

The exact timing and order of some stages can vary depending on the property, lender and part of the UK where you’re buying.

Frequently Asked Questions About Buying Your First Home

What Should You Do First When Buying Your First Home?

Start by understanding your finances.

Establish how much deposit you have, how much mortgage borrowing may be available and what monthly repayment would be comfortable.

Speaking to a mortgage adviser early can help you understand the options before seriously viewing properties.

How Much Deposit Do You Need to Buy Your First Home?

Some mortgages are available with a 5% deposit, although lender criteria and affordability requirements apply.

A larger deposit may provide access to a wider range of products or more competitive rates.

Can You View Houses Without an Agreement in Principle?

Yes.

An Agreement in Principle isn’t generally a legal requirement for viewing properties.

However, having one before seriously searching can help establish your budget and demonstrate to estate agents that you’ve considered your mortgage arrangements.

How Long Does Buying Your First Home Take?

There’s no fixed timescale.

A straightforward purchase with no property chain may progress more quickly than a transaction involving several buyers and sellers.

Mortgage underwriting, surveys, searches and legal enquiries can all affect how long the process takes.

Getting your finances organised early can help avoid unnecessary delays.

How Lansdown Financial Services Can Help

Buying your first home involves plenty of decisions, but you don’t need to work everything out before speaking to a mortgage adviser.

At Lansdown Financial Services, we can help before you’ve even started viewing properties.

We’ll assess your income, deposit and existing financial commitments to establish how much you may be able to borrow and what that could mean for your property budget.

We can explain potential monthly repayments, discuss different mortgage options and arrange an Agreement in Principle where appropriate.

Then, once you’ve found your first home, we’ll compare suitable mortgage products and guide you through the application process, from submission to the formal mortgage offer and completion.

As a free, whole-of-market mortgage adviser with access to more than 70 lenders, we provide straightforward, personalised advice without the jargon.

You don’t need to know which mortgage lender to approach or which product to choose before contacting us.

That’s what we’re here to help with.

Thinking about buying your first home but not sure where to begin?

Contact Lansdown Financial Services or call 01225 459515 to speak to one of our award-winning mortgage advisers for free, expert first-time buyer mortgage advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.

About the Author

Written by Doug Miller, Director at Lansdown Financial Services.

Doug Miller is a mortgage broker and co-founder of Lansdown Financial Services, based in Bath, quoted in 30+ news articles including the Guardian, Sky News, This is Money and the Sun.