First-Time Buyer Guide UK: Step-by-Step Advice for New Homeowners

Buying your first home is an exciting milestone — but it can also feel overwhelming. With so many steps, terms, and financial decisions to navigate, it's easy to feel unsure where to begin. That’s where we come in.

At Friends Capital Ltd, we support first-time buyers across the UK every step of the way, helping them understand the mortgage process and find the right financial product for their needs. This guide breaks down the process of buying your first home, explains your options, and answers the most commonly searched questions in the UK.

1. Work Out Your Budget

Before you start viewing properties, it’s important to know how much you can afford to borrow and what size deposit you’ll need. Most UK lenders require a minimum 5% deposit, but the larger your deposit, the better the mortgage deals available to you.

Typical costs to budget for include:

  • Mortgage deposit
  • Legal fees (solicitor or conveyancer)
  • Survey costs
  • Stamp Duty Land Tax (first-time buyers get relief up to £425,000 in England)
  • Moving costs and potential renovations

You can use online affordability calculators for an estimate, or speak to a mortgage adviser to get a clearer picture based on your income, credit history, and outgoings.

2. Get a Mortgage Agreement in Principle (AIP)

A Mortgage Agreement in Principle, also known as a Decision in Principle, shows how much a lender is willing to lend you based on a preliminary check. It’s not a formal mortgage offer, but it signals to estate agents that you’re a serious buyer.

An AIP is usually valid for 30 to 90 days and can be arranged in as little as 24 hours. At Friends Capital, we can help you secure one quickly with minimal impact on your credit score.

3. Start House Hunting

Once you have an AIP and know your budget, you can begin looking for properties within your price range. Make a list of must-haves and nice-to-haves, and consider location factors like transport links, schools, and amenities.

Top tip: Register with local estate agents and property websites like Rightmove and Zoopla to receive alerts when new properties become available.

4. Make an Offer

When you’ve found a property you love, it’s time to make an offer through the estate agent. You may be able to negotiate, especially if the property has been on the market for a while or there is no competition.

Once your offer is accepted, the property is "sold subject to contract", and you’ll need to begin the mortgage application process.

5. Apply for a Mortgage

With your offer accepted, it's time to apply for a mortgage. You’ll need to provide:

  • Proof of income (payslips or accounts if self-employed)
  • Bank statements
  • Identification and proof of address
  • Details of the property you're buying

Our advisers will guide you through your options and help you submit your application to the lender best suited to your circumstances.

6. Appoint a Solicitor or Conveyancer

A solicitor or licensed conveyancer handles the legal side of your purchase, including:

  • Conducting searches
  • Checking contracts
  • Handling exchange and completion

We can recommend experienced professionals if needed.

7. Get a Survey

A survey checks the condition of the property and identifies any structural issues. Types of surveys include:

  • Mortgage valuation (required by your lender)
  • Homebuyer Report
  • Full Building Survey (for older or unusual properties)

You can upgrade your survey depending on the age and condition of the home.

8. Exchange Contracts and Complete

Once all checks are completed and your mortgage is approved, your solicitor will exchange contracts with the seller’s solicitor. At this point, you’re legally committed to the purchase.

A few days later (or on the same day), you’ll complete — the property becomes legally yours, and you can collect the keys.

Most Common First-Time Buyer Questions in the UK

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

You’ll usually need at least 5% of the property price, but putting down 10% or more will give you access to better mortgage rates.

Are there any government schemes for first-time buyers in the UK?

Yes, such as the First Homes Scheme, Lifetime ISA, and Shared Ownership. Our mortgage advisers can explain which schemes you're eligible for.

Do first-time buyers pay Stamp Duty in the UK?

First-time buyers in England and Northern Ireland don’t pay Stamp Duty on homes worth up to £425,000, and a reduced rate up to £625,000.

Can I get a mortgage with a small deposit?

Yes. Several lenders offer 95% loan-to-value (LTV) mortgages. You may also consider a guarantor mortgage or family-assisted mortgage.

Speak to a First-Time Buyer Mortgage Expert Today

Buying your first home is a major step — but you don’t have to do it alone. At Friends Capital Ltd, our friendly, professional mortgage advisers are here to make the process easier, clearer, and less stressful.

We’ll help you:

  • Understand your borrowing power
  • Compare mortgage products across the market
  • Access first-time buyer schemes
  • Secure your Agreement in Principle
  • Support you through to completion

Get in touch with our expert team today and take your first confident step onto the property ladder.