First-Time Buyer Guide

Before you start looking at properties, you need to know what you can realistically afford. This means understanding how much you can borrow and what your monthly payments might look like.

How much can you borrow?

Most lenders will offer between 4 and 4.5 times your annual salary. If you're buying with someone else, they'll look at your combined income.

For example, if you earn £35,000 a year, you might be able to borrow around £140,000–£157,500. Add your deposit to this to get your maximum property budget.

Don't forget other costs

Your monthly budget needs to cover more than just the mortgage:

• Council tax
• Utility bills (gas, electricity, water)
• Home insurance (buildings and contents)
• Service charges or ground rent (if applicable)
• Maintenance and repairs

You'll typically need at least 5–10% of the property value as a deposit. The more you can put down, the better mortgage rates you'll be offered and the less you'll pay in interest over the life of the loan.

Why a bigger deposit helps

• Lower interest rates – Lenders see you as less risky, so they offer better deals.
• Lower monthly payments – You're borrowing less overall.
• More equity from day one – Better protection if property prices fall.
• More lender options – Some of the best deals require at least 10% or 15% deposit.

Schemes to boost your savings

An Agreement in Principle (AIP), also called a Decision in Principle or Mortgage in Principle, is a statement from a lender saying how much they'd be willing to lend you based on a quick check of your circumstances.

Why you need one

• Shows estate agents and sellers you're a serious buyer
• Confirms your budget before you start viewing
• Speeds up the process once your offer is accepted
• Usually valid for 60–90 days

What you'll need to provide

• Proof of income (payslips, tax returns if self-employed)
• Bank statements
• ID and proof of address
• Details of your deposit
• Information about your monthly outgoings

Now the fun part – house hunting. With your budget confirmed, you can start viewing properties with confidence.

Things to consider

• Location – Commute time, local amenities, safety, and neighbourhood feel
• Property type – House, flat, new build, period property
• Size and layout – Does it work for your life now and in the near future?
• Condition – Move-in ready or needs work? Factor this into your budget
• Outside space – Garden, balcony, parking
• Leasehold vs freehold – Leaseholds come with service charges and ground rent

Red flags to watch for

• Signs of damp or structural problems
• Very short lease remaining (under 80 years can be problematic)
• High service charges or ground rent
• Nearby developments that could affect the property
• Non-standard construction that might limit mortgage options

Found the one? Time to make an offer. You'll do this through the estate agent, who will pass it on to the seller.

Tips for making an offer

• Research comparable sales – What have similar properties sold for recently?
• Consider the market – Is it a buyer's or seller's market?
• Factor in any work needed – If the property needs updates, you might offer less
• Be ready to negotiate – First offers are often countered
• Put your best position forward – Being a first-time buyer with no chain is attractive to sellers

Once your offer is accepted, you'll need to submit a full mortgage application. This is more detailed than your Agreement in Principle.

What happens during the application

• Full credit check – The lender reviews your credit history in detail
• Income verification – They'll want proof of your earnings
• Property valuation – The lender sends a valuer to check the property is worth what you're paying
• Underwriting – The lender reviews everything and decides whether to offer you the mortgage

Choosing the right mortgage

There are many different types of mortgage – fixed rate, tracker, variable, and more. Each has pros and cons depending on your situation. See our mortgage types guide for a full breakdown.

The final stretch. Your solicitor handles the legal work, and once everything is in place, you'll exchange contracts and then complete.

The legal process

• Conveyancing – Your solicitor checks the legal title, runs searches, and prepares contracts
• Survey – You should get a survey done to check for problems with the property
• Exchange of contracts – Both sides are now legally committed. You pay your deposit
• Completion – The remaining money is transferred and you get the keys

Timelines

The whole process from offer accepted to completion typically takes 8–12 weeks, but it can be longer if there are complications. New builds and chain-free sales can sometimes be faster.