Pillar guide · 15 min read
The first-time buyer guide
Everything a UK first-time buyer needs to know in 2026, in the order you'll need it. We link out to calculators, scheme detail pages, and regional guides where they help. The prose below stands on its own.
What counts as a first-time buyer
In UK terms, a first-time buyer is someone who has never owned or part-owned residential property — anywhere in the world, at any point, including by inheritance. The rules are stricter than most people think.
If you're buying jointly, every buyer on the deed must qualify. A partner who has ever owned before means the purchase is treated as a standard purchase for SDLT (no first-time buyer relief) and disqualifies you from First Homes and (mostly) from Shared Ownership's new-applicant criteria. The Lifetime ISA has a narrow exception allowing one buyer who isn't a first-time buyer, but both must meet the other LISA criteria.
If this is a tight call — say, you owned a flat briefly a decade ago — talk to a conveyancer before relying on first-time buyer benefits. Getting it wrong at completion is expensive.
The deposit question
Almost every decision about what and where you can buy funnels through deposit size. In 2026 the effective rungs look like:
- 5% deposit. Smallest mainstream option. Available via high-LTV products and through the permanent Mortgage Guarantee successor, Freedom to Buy. Rates are the highest of any mainstream band (95% LTV 5-year fixes around 5.65% in April 2026).
- 10% deposit. Opens up more lenders and noticeably better rates (90% LTV 5-year fix around 5.20%). The practical floor that most brokers will push you toward if possible.
- 15-25% deposit. Rate differences start to flatten. Worth saving to if you can afford the time, but diminishing returns above 25%.
- Sub-5%. Very limited. Gift/guarantor routes (Barclays Family Springboard, some JBSP products), or specific no-deposit products like Skipton Track Record (for long-term renters) — not universal, always conditional.
Deposits can come from savings, gifts (from family, declared to the lender), Lifetime ISA proceeds, or a combination. Concentrate on the total, not a specific source.
Schemes worth knowing
Several schemes help first-time buyers in England. They work in different ways; some stack (you can use a LISA alongside Shared Ownership, for instance).
- Lifetime ISA — up to £1,000/year free government top-up on savings. Near-universal if you're under 40 and a first-time buyer.
- First Homes — 30-50% off specific new builds, with the discount locked to the home forever.
- Shared Ownership — buy a 10-75% share, rent the rest. Useful when outright ownership is out of reach.
- Freedom to Buy — the permanent 95% LTV guarantee scheme (successor to the Mortgage Guarantee Scheme).
- Deposit Unlock — 5% deposit on qualifying new builds, industry-backed.
- Discount Market Sale — council-level, 20-50% off, local eligibility only.
Affordability and borrowing
UK lenders typically cap borrowing at 4-4.5× income. Some stretch to 5× or 5.5× for specific products or professions (Nationwide's Helping Hand, various professional schemes). Joint mortgages combine the two incomes and apply the multiple to the total.
But the multiple is the ceiling. The floor is affordability: lenders check you can meet the payment at a stressed rate (typically 2-3 percentage points above your actual rate), after accounting for committed expenditure, dependents, student loans and other debt. Most people who get turned down fail here, not on the multiple.
Rule of thumb: keep your mortgage payment below 30-35% of net take-home pay to pass most lenders' affordability tests. Load the borrowing calculator to model your own numbers.
The buying process, step by step
- 01
Check your credit file
Get free reports from Experian, Equifax and TransUnion. Fix anything wrong — misaddressed accounts, closed accounts still showing as open, missed payments that shouldn't be yours. This alone can move you up a product tier.
- 02
Set a savings target
Budget: deposit (10% is a good planning figure) + stamp duty if applicable + legal (£1,500-£2,500 typical) + survey (£400-£900) + mortgage arrangement fee (0-£1,999) + removals (£500-£2,500) + float for emergencies. Use the affordability calculator to size the total.
- 03
Open a Lifetime ISA if eligible
If you're 18-39 and saving for your first home, a LISA gives a 25% government top-up (up to £1,000/year) on contributions. Hold it for 12+ months before drawing down, buy a home ≤ £450k. Cash LISAs are more predictable for 1-5 year timelines.
- 04
Get an Agreement in Principle
Before house-hunting seriously, get an AIP from a lender (directly or via a broker). Takes 15-30 minutes, soft credit check, gives you an indicative borrowing limit to anchor your property search.
- 05
Find and offer on a property
Expect 5-20 viewings before finding one that works. Offer via the estate agent — make it written and confirm any fixtures or conditions. Be prepared to move quickly if the market is active; in slower markets, you can negotiate more firmly on price and timeline.
- 06
Apply for the mortgage and instruct a solicitor
Mortgage application goes to underwriters; solicitor starts conveyancing (searches, title check, SDLT form). You pay for survey at this point — spend on a proper Level 2 (Homebuyer Report) at minimum, Level 3 (Building Survey) for older or unusual properties.
- 07
Exchange contracts
You pay a deposit (typically 5-10%) to your solicitor; you're legally committed. Buildings insurance starts from exchange — sort it before, not after.
- 08
Complete
Mortgage funds transfer; keys released. You pay the balance of deposit, SDLT, legal fees on completion. Most of the cash moves today.
The true total cost
The deposit is maybe 60-80% of the cash you need on day one. The rest is fees most guides underplay. For a typical first-time buyer at £275,000 in England:
- Deposit (10%) — £27,500
- Stamp duty — £0 (first-time buyer relief applies up to £300k)
- Conveyancing (incl. searches, Land Registry) — ~£1,400
- Homebuyer Report (RICS Level 2) — ~£500
- Mortgage arrangement fee — £0-£999 depending on product
- Removals — £500-£1,500
- ID/AML checks — ~£20
Total additional to deposit: £2,400-£4,400. Use the affordability calculator to get your exact number.
Common mistakes
- Optimising the deposit and ignoring the fees. You hit £30k and think you're ready — then discover you need another £4k before completion.
- Assuming your rate is the "best-buy" rate on MoneySavingExpert. Best-buys are headline; you may qualify for worse based on credit, LTV band, property type.
- Skipping the survey. A £500 Homebuyer Report can save you from a £5,000 roof, a £15,000 damp problem, or a lost sale. Never skip this on a home over ~15 years old.
- Not understanding the difference between AIP and mortgage offer. An AIP is indicative. Only a mortgage offer is binding, and it can be withdrawn up to completion if your circumstances change materially.
- Buying furniture before completion. Taking on new credit (IKEA store card, BNPL sofa, car finance) between AIP and offer can retrigger affordability checks and kill your application.
Frequently asked questions
Who counts as a first-time buyer?
Someone who has never owned or part-owned residential property anywhere in the world — including by inheritance. If you are buying jointly, every buyer on the deed must qualify. A partner who has owned before disqualifies both of you for first-time buyer SDLT relief and for some schemes (the Lifetime ISA allows one joint buyer who isn't a first-time buyer; First Homes and Shared Ownership are stricter — check the specific scheme).
How much deposit do I really need?
The effective floor in 2026 is 5% via high-LTV products (including the permanent Mortgage Guarantee successor, Freedom to Buy). 10% opens more lender choice and better rates. 15-25% is where rates start to flatten out. Below 5% is very limited — gift or guarantor routes only.
Should I use a mortgage broker?
Usually yes. A good broker has visibility of the whole market, knows lender quirks (which lender will accept a contract worker, which one handles recent CCJs, which one will go 5× income for teachers), and typically costs nothing — the lender pays them. Paid brokers exist where the case is complex; expect £200-£1,000 in that situation.
What's an 'agreement in principle'?
A short credit check with a lender that returns an indicative borrowing limit. It's not a formal mortgage offer, but estate agents will often ask for one before letting you view. It's free and takes 15-30 minutes online. Getting several AIPs in quick succession is fine — they're soft checks; your credit score isn't harmed.
How long does the process take?
From accepted offer to keys, typical is 10-14 weeks in 2026. The chain is usually the bottleneck, not your mortgage. Your own side (mortgage application, solicitor) takes 4-6 weeks; the rest is waiting on seller, their buyer, their solicitor, and so on.