# First-Time Buyer Guide: What You Need to Know to Buy Your First Home in the UK

> Buying your first home is the largest financial commitment most people make. Here is what you need to know about the process, the costs and the financial help available.

*Section: Personal Finance — By Rachel Stone (Personal Finance Editor) — Published November 29, 2025 — 1 min read*

Canonical URL: https://dailyjunction.org/business-finance/first-time-buyer-guide-uk
Tags: first time buyer, mortgage, house buying, stamp duty, uk property

## Key takeaways

- A mortgage in principle (agreement in principle) before house hunting shows sellers you are serious and able to proceed
- You typically need at least a 5-10% deposit; a larger deposit secures better mortgage rates
- Stamp Duty Land Tax thresholds and first-time buyer relief change frequently — check current HMRC rates
- The legal process (conveyancing) typically takes 8-12 weeks from offer acceptance to exchange

## Before you start house hunting

Get a mortgage in principle (AIP): a conditional commitment from a lender showing how much they would lend you. This clarifies your budget and demonstrates to sellers that you are a credible buyer. To get an AIP, lenders will run a soft or hard credit check and ask about your income and outgoings.

## The costs beyond the purchase price

Many first-time buyers underestimate the costs beyond the deposit. Stamp Duty Land Tax (SDLT) applies above certain thresholds — there are first-time buyer reliefs, but these change frequently; check the current HMRC SDLT calculator. Solicitor/conveyancer fees typically run £1,000-£2,500. Survey costs depend on survey type: a basic mortgage valuation is not a structural survey; a HomeBuyer Report (£400-£1,000) or full building survey (£600-£1,500+) provides much more information. Mortgage arrangement fees can be several hundred to over a thousand pounds.

## The process step by step

(1) Get a mortgage in principle. (2) House hunt within your confirmed budget. (3) Make an offer. (4) Instruct a solicitor and book a survey. (5) Receive a formal mortgage offer from your lender. (6) Exchange of contracts (legally binding, deposit paid). (7) Complete (final money transferred, keys received). Between offer and exchange typically takes 8-12 weeks; delays are common, particularly in chains.

## Help to Buy and shared ownership

The government's Help to Buy equity loan scheme for new-builds ended in England in March 2023. First Homes (discounted new-build homes for local people and key workers) and Shared Ownership (buying a share of a property and paying rent on the remainder) remain available. The Lifetime ISA allows first-time buyers to save up to £4,000 per year with a 25% government bonus toward a first home purchase.

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## Sources

- [MoneyHelper](https://www.moneyhelper.org.uk)
- [Which?](https://www.which.co.uk)

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