Buying your first home

Buying your first home is exciting, and it comes with a lot of new words and steps all at once. Here’s what to expect, from working out your budget to getting the keys.

Work out what you can afford

Start with two numbers: the deposit you have, and how much a lender will let you borrow.

Most lenders want a deposit of at least 5% of the price, and the more you put down, the better the mortgage rates tend to be. Many first-time buyers aim for 10% or more if they can.

Before you start viewing, get a mortgage in principle. It’s a statement from a lender saying roughly how much they’d be willing to lend you, based on your income and outgoings. It takes minutes, usually doesn’t affect your credit score, and it shows sellers you’re serious. Our mortgage adviser Lucy can talk you through it.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Plan for the costs on top

The deposit isn’t the only money you’ll need. Budget for:

• Solicitor’s fees and searches, usually somewhere between £1,000 and £2,000 for a straightforward purchase.
• A survey. The lender’s valuation is for the lender, not you, so it’s worth paying for your own. A Level 2 survey suits most homes; an older or altered property may need a Level 3.
• Mortgage fees. Some deals have an arrangement fee, which can sometimes be added to the loan.
• Stamp Duty. In England, first-time buyers pay none on homes up to £300,000, and 5% on the part of the price between £300,001 and £500,000. If the home costs more than £500,000, the first-time buyer relief doesn’t apply.
• Moving costs, buildings insurance from exchange, and the bits you’ll need on day one.

Schemes that can help

• Lifetime ISA. If you’re 18 to 39, you can save up to £4,000 a year and the government adds a 25% bonus, up to £1,000 a year. It can be used towards a first home costing up to £450,000, as long as the account has been open for at least a year.
• New build incentives. Developers sometimes help with deposits, legal fees or extras, so it’s worth asking what’s on offer when you look round a new home.

Schemes and rules change, so check the latest details or ask Lucy before you rely on one.

Find the right home

Register for property alerts and we’ll email you the moment a home that fits your search comes on.

When you view, take your time:

• Look past the furniture at the rooms themselves, and the light.
• Check the boiler’s age, the windows, and any damp or cracks.
• Ask why the sellers are moving and how long they’ve been there.
• Go back at a different time of day, and walk the area.

Making an offer

When you find the one, tell us your offer and we’ll pass it to the seller. We’ll ask a few questions that sellers want answered:

• Your mortgage in principle, or proof of your deposit.
• Your solicitor’s details, if you have one yet.
• Your position. As a first-time buyer with no home to sell, you’re chain free, and sellers like that.

After your offer is accepted

1. Instruct your solicitor, who will check the contract and run the searches.
2. Apply for your full mortgage. The lender will value the home.
3. Book your survey and read it properly. If it turns anything up, talk to us before you go further.
4. Your solicitor raises any questions with the seller’s solicitor and reports back to you.
5. You sign the contract, pay your deposit, and the solicitors exchange. From here the purchase is legally binding.
6. On completion day the money is sent, and we hand you the keys.