Buying your first home is one of life's biggest milestones—and one of its most daunting. The process involves unfamiliar jargon, complex legal procedures, and financial decisions that will affect you for decades. This guide breaks down everything you need to know, step by step.
Step 1: Work Out What You Can Afford
Before you start browsing Rightmove, you need a realistic budget. This involves several components:
Deposit: Most lenders require at least 5-10% of the property value as a deposit. A larger deposit (15-20%) typically gets you better mortgage rates. For a £300,000 property, that's £15,000-£60,000.
Mortgage: Lenders typically offer 4-4.5x your annual income. If you earn £50,000, you might borrow £200,000-£225,000. Joint buyers can combine incomes.
Additional costs: Budget £5,000-£10,000 for surveys, legal fees, stamp duty (if applicable), moving costs, and initial furnishing. First-time buyers pay no stamp duty on properties up to £425,000 (as of 2025).
Step 2: Get a Mortgage Agreement in Principle
An Agreement in Principle (AIP) is a statement from a lender confirming how much they'd be willing to lend you, subject to full application. It's not a guarantee, but it shows sellers and agents you're serious.
Getting an AIP involves a credit check and basic financial information. The lender will look at your income, outgoings, credit history, and existing debts. The process typically takes a few days.
Having an AIP makes your offers more credible. On HomeBid, buyers with verified AIPs receive a higher Buyer Score, making sellers more likely to accept their offers.
Step 3: Find the Right Property
Now the fun part—house hunting. Consider:
Location: Commute times, local amenities, schools (if relevant), crime rates, flood risk, and future development plans all matter.
Property type: Flats are typically cheaper but involve service charges and leasehold complications. Houses offer more control but more maintenance responsibility.
Condition: A renovation project might be cheaper upfront but require significant investment. A move-in ready property costs more but involves less stress.
Growth potential: Consider whether the area is improving, stable, or declining. Regeneration zones can offer good value but come with uncertainty.
Step 4: Make an Offer
When you find the right property, it's time to make an offer. This should be:
Informed: Research comparable sales in the area. What have similar properties sold for recently? Is the asking price realistic?
Justified: If you're offering below asking price, have reasons. Point to specific issues, market conditions, or comparable sales.
Credible: Include details of your AIP, your chain status (as a first-time buyer, you're chain-free—a major advantage), and your timeline.
On HomeBid, your verified Buyer Score gives sellers confidence in your offer. First-time buyers often win against higher offers from chain-bound competitors.
Step 5: Instruct a Solicitor
Once your offer is accepted, you need a conveyancing solicitor to handle the legal work. They will:
Review the title documents to ensure the seller actually owns what they're selling. Conduct searches for planning issues, environmental risks, and local authority matters. Raise enquiries about boundaries, fixtures, and any issues discovered. Prepare and review contracts. Handle the exchange and completion process. Register your ownership with the Land Registry.
Expect to pay £1,000-£2,000 for conveyancing, plus £250-£400 for searches. HomeBid users benefit from integrated conveyancing with real-time progress visibility.
Step 6: Get a Survey
Don't skip the survey. Your mortgage lender will do a basic valuation, but this only confirms the property is worth what you're paying—it doesn't check for problems.
Options include a HomeBuyer Report (£400-600) that covers major issues, or a full Building Survey (£600-1,500) that provides comprehensive analysis. For older or unusual properties, the full survey is worth it.
If the survey reveals issues, you can renegotiate the price, ask the seller to fix problems, or walk away. Better to discover problems now than after you've moved in.
Step 7: Finalise Your Mortgage
With an accepted offer and survey complete, submit your full mortgage application. The lender will:
Verify all the information from your AIP. Conduct a detailed credit check. Request payslips, bank statements, and ID. Commission their own property valuation. Issue a formal mortgage offer (typically valid for 6 months).
This process takes 2-4 weeks. Having documents ready speeds things up significantly.
Step 8: Exchange Contracts
Exchange is the point of no return. Before exchange:
Your solicitor confirms all legal work is complete. You transfer your deposit (usually 10% of the purchase price). Buildings insurance must be in place. You agree on a completion date.
At exchange, contracts become legally binding. Pulling out after exchange means losing your deposit and potentially being sued for damages.
Step 9: Complete and Move In
Completion day is when money changes hands and you get the keys. Your solicitor will:
Transfer the purchase funds to the seller's solicitor. Receive confirmation that funds have arrived. Authorise release of the keys. Pay Stamp Duty (if applicable) and register your ownership.
Then it's time to collect your keys, pop the champagne, and enjoy your first night in your new home.
First-Time Buyer Tips
Start saving early. Even small regular savings add up. Many first-time buyers take 5-7 years to save a deposit.
Check your credit score. Errors can be fixed, but it takes time. Check at least 6 months before applying for a mortgage.
Use government schemes. Lifetime ISAs, Help to Buy, and shared ownership can all help first-time buyers.
Be patient but decisive. Don't rush into the wrong property, but when you find the right one, move quickly.
Ask questions. There are no stupid questions when you're spending hundreds of thousands of pounds. If you don't understand something, ask.
"As a first-time buyer, you have a superpower: no chain. Use it. Sellers love buyers who can move quickly without depending on others."
Ready to start your journey? Create your HomeBid account and get verified as a buyer today.