Buying your first home is one of the biggest financial decisions you will ever make, and it can feel daunting when you are doing it for the first time. The good news is that the process follows a fairly predictable path, and once you understand the stages it becomes far less intimidating. This guide walks you through everything from getting mortgage-ready to picking up the keys, so you know what to expect at each step.
At Wisely, we advise first-time buyers across Southampton, Hampshire and the wider UK every week. We are an independent, whole-of-market adviser, which means we look across 120+ lenders to find the right fit for your circumstances rather than steering you toward a single provider. Here is how buying your first home typically works.
Step 1: Get mortgage-ready
Before you start viewing properties, it pays to get your finances in order. Lenders assess two main things: whether you can afford the monthly repayments, and how reliably you manage credit.
To get mortgage-ready:
- Check your credit report with all three UK agencies (Experian, Equifax and TransUnion). Correct any errors, register on the electoral roll, and avoid missing payments in the months before you apply.
- Reduce unnecessary debt where you can. Lenders look at your existing commitments when working out how much you can borrow.
- Keep your bank statements tidy. Lenders often review three to six months of statements, so large gambling transactions or undisclosed loans can raise questions.
- Gather your paperwork early: payslips, tax calculations if you are self-employed, proof of deposit and photo ID.
Getting your file in good shape can widen the range of lenders willing to lend to you, and may improve the rates you can access. For more detail, see our guide on what credit score you need for a mortgage.
Step 2: Work out your deposit
Your deposit is the cash you put in yourself, expressed as a percentage of the property price. Most first-time buyers need a minimum of 5% to 10%, though a larger deposit generally unlocks lower interest rates because the lender is taking on less risk.
For example, on a £250,000 home:
- A 5% deposit is £12,500
- A 10% deposit is £25,000
The size of your deposit affects your loan-to-value (LTV) ratio, which is one of the biggest factors in the rate you are offered. Deposits can also be boosted by gifts from family, and there are dedicated savings routes such as the Lifetime ISA. We cover all of this in our guide to how much deposit you need for a mortgage.
Step 3: Get an agreement in principle
An agreement in principle (AIP), sometimes called a mortgage in principle or decision in principle, is a statement from a lender indicating how much they may be willing to lend you, based on a soft check of your finances.
It is not a formal mortgage offer, but it is genuinely useful:
- It gives you a realistic budget before you start viewing.
- Estate agents often ask to see one before they take your offer seriously.
- It signals to sellers that you are a credible buyer.
An AIP usually takes minutes to obtain and typically lasts between 30 and 90 days. Learn more in our guide to the mortgage in principle.
Step 4: Understand the true cost of buying
Your deposit is not the only cash you need. First-time buyers are sometimes caught out by the additional costs of moving, so budget for these early:
- Stamp duty (though first-time buyers often qualify for relief — more below)
- Conveyancing and legal fees
- Survey and valuation costs
- Mortgage or broker fees
- Removals and insurance
We break these down with an illustrative example in our guide to the cost of buying a home. On stamp duty specifically, many first-time buyers pay less than they expect — see do first-time buyers pay stamp duty.
Step 5: Find the right home
With your budget and AIP in place, you can start viewing with confidence. Beyond the obvious questions of location, size and condition, consider:
- How long the property has been on the market
- The reason the seller is moving, and their timescale
- Whether the property is freehold or leasehold (and if leasehold, how many years remain and what the service charges are)
- The local area at different times of day
Take your time. It is easy to fall for a property emotionally, but this is a financial commitment that will shape your budget for years, so keep a level head.
Alternative routes onto the ladder
If a full purchase feels out of reach, part-ownership schemes may help. Shared ownership lets you buy a share of a home and pay rent on the rest, while other government-backed schemes come and go over time. We compare the main options in shared ownership vs Help to Buy.
Step 6: Make an offer
When you find the right place, you make an offer through the estate agent. Offers are not legally binding in England and Wales until contracts are exchanged, so there is room for negotiation.
A few tips:
- Base your offer on comparable local sales, not just the asking price.
- Highlight your strengths as a buyer: your AIP, your chain-free status, and your flexibility on timing.
- Be prepared for some back-and-forth. Staying calm and reasonable often works in your favour.
Once your offer is accepted, the property is usually marked as sold subject to contract, and the legal process begins.
Step 7: Apply for your mortgage
Now you convert your agreement in principle into a full mortgage application. The lender carries out a detailed assessment of your income, outgoings and credit history, and instructs a valuation of the property to confirm it is worth what you are paying.
This is where working with an adviser really helps. At Wisely, your named adviser handles the application, liaises with the lender, and chases progress on your behalf, so you are not left wondering what is happening. For your mortgage, we are not a fee-free broker — you pay a clear, capped fee for genuine, whole-of-market advice, agreed upfront — and our protection advice is free. That is a deliberate choice, because getting this decision right matters.
Step 8: Conveyancing and searches
Conveyancing is the legal work involved in transferring ownership. Your solicitor or licensed conveyancer will:
- Carry out local authority, environmental and water searches
- Review the contract and title
- Raise enquiries with the seller's solicitor
- Handle the transfer of funds
This stage often takes several weeks and can be the slowest part of the process, particularly if there is a chain. Responding quickly to your solicitor's requests helps keep things moving.
Step 9: Survey and valuation
The lender's valuation confirms the property is worth the loan amount, but it is not a survey of the property's condition. It is usually wise to arrange your own survey:
- A HomeBuyer Report suits most conventional homes in reasonable condition.
- A full building survey is better for older, larger or unusual properties.
If a survey uncovers problems, you may be able to renegotiate the price or ask the seller to carry out repairs before you proceed.
Step 10: Exchange and completion
Exchange of contracts is the point at which the sale becomes legally binding. You pay your deposit to the solicitor, and a completion date is agreed. From this point, neither party can pull out without significant penalties.
Completion is the day the money changes hands and the property becomes yours. Your solicitor confirms the funds have transferred, and the estate agent releases the keys. Congratulations — you are a homeowner.
Before completion, make sure your buildings insurance is in place from the day of exchange, and consider protecting your mortgage with life insurance and income protection so your home is secure if the unexpected happens.
How Wisely helps first-time buyers
Buying your first home is a big decision, and you do not have to make it alone. As an independent, FCA-regulated adviser with access to 120+ lenders and insurers, Wisely gives you a personal, named adviser from your first call through to completion. We have arranged over £430m of lending and advised 2,800+ clients, with a 5/5 rating on Google.
Big decisions, made wisely. To talk through your plans with no obligation, book a free call on 023 8268 1111.
This guide is general information, not personal financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
Frequently asked questions
How long does it take to buy your first home?
From offer accepted to completion typically takes eight to twelve weeks, though it can be quicker or slower depending on the chain and how fast searches come back. Getting mortgage-ready and having an agreement in principle before you start viewing can save valuable time.
How much can a first-time buyer borrow?
Most lenders offer around four to four-and-a-half times your annual income, though some may lend more depending on your circumstances. An adviser can help you understand what you could realistically borrow across the whole market.
Do I need a mortgage adviser to buy my first home?
You are not required to use one, but a whole-of-market adviser can compare lenders you may not have access to directly and handle the application on your behalf. For a first-time buyer navigating the process, that support can be reassuring and can help avoid costly mistakes.
What is the minimum deposit for a first-time buyer?
Most lenders require at least 5% of the property price, so £10,000 on a £200,000 home. A larger deposit typically gives you access to lower interest rates because it reduces the lender's risk.