First-Time Buyer Guide UK 2026

Your deposit is the foundation of your home purchase. In 2026, the minimum deposit accepted by most UK lenders is 5% of the property price, though putting down 10% or more gives you access to significantly better interest rates and a wider choice of mortgage products. For a property at the UK average of approximately £295,000, a 5% deposit is £14,750, while 10% is £29,500.

Start by setting a clear savings target based on your desired property price range. Open a dedicated savings account — a Lifetime ISA (LISA) is particularly valuable for first-time buyers, as the government adds a 25% bonus on contributions up to £4,000 per year, giving you up to £1,000 per year in free money. The maximum property price to use a LISA is £450,000. Regular savings accounts and fixed-rate bonds offer competitive interest rates for building your deposit pot. If parents or family members are contributing to your deposit, be aware that most lenders require a gifted deposit letter confirming the money is a gift, not a loan, and does not need to be repaid.

Before approaching lenders, take time to make your financial profile as strong as possible. Check your credit report with all three UK credit reference agencies — Experian, Equifax, and TransUnion — and dispute any errors. Ensure you are registered on the electoral roll at your current address, as this is a key factor in credit scoring. Pay down any outstanding credit card balances and avoid taking on new credit in the six months before your mortgage application.

Gather the documents lenders will need: three months of bank statements, three months of payslips (or two to three years of accounts if self-employed), proof of identity (passport or driving licence), proof of address (utility bill or council tax statement), and details of any existing debts or financial commitments. Having these ready speeds up the application process significantly. If you have any unusual deposits or large transactions in recent bank statements, be prepared to explain these — lenders scrutinise bank statements for evidence of undisclosed borrowing or gambling.

A mortgage in principle (MIP), also known as a Decision in Principle (DIP) or Agreement in Principle (AIP), is a conditional confirmation from a lender of how much they would be prepared to lend you. It involves a basic assessment of your income, outgoings, and credit history, and is typically valid for 60 to 90 days. Some lenders perform a soft credit check for a MIP (which does not affect your credit score), while others perform a hard check, so ask before proceeding.

Having a MIP demonstrates to estate agents and sellers that you are a serious buyer with confirmed borrowing capacity. Most estate agents will ask whether you have one before arranging viewings on competitive properties, and sellers are more likely to accept offers from buyers who have already been pre-approved. You can apply for a MIP directly with a lender or through a mortgage broker. A broker can search the whole market, including deals not available directly, and can advise on which lenders' criteria best match your circumstances. Use our affordability calculator to estimate your borrowing power before approaching a broker.

With your budget confirmed, begin searching for properties on portals such as Rightmove, Zoopla, and OnTheMarket. Set up alerts for new listings matching your criteria. Research areas thoroughly — consider commute times, local schools, crime statistics, flood risk, planned developments, and future infrastructure projects that could affect property values. Visit areas at different times of day to get a realistic feel for the neighbourhood.

When viewing properties, look beyond the cosmetics. Check for signs of damp (musty smells, tide marks on walls, condensation on windows), assess the condition of the roof from outside, look at the boiler age and type, and check the window condition. Take photos and notes at each viewing. Do not be afraid to view a property twice or bring someone with building knowledge. When you find the right property, research recent sold prices of comparable properties using the Land Registry or Rightmove sold prices to inform your offer.

When you have found the right property, it is time to make an offer. In England and Wales, offers are not legally binding until contracts are exchanged, so you have flexibility to negotiate. Your offer should be informed by comparable sales data, the property's condition, how long it has been on the market, and the seller's circumstances (motivated sellers moving abroad, for instance, may accept lower offers for speed and certainty).

First-time buyers are attractive to sellers because they have no chain — there is no property to sell before completing the purchase, which reduces the risk of the transaction falling through. Use this as a negotiating advantage. Make your offer through the estate agent, highlighting your chain-free status and mortgage in principle. If your initial offer is rejected, ask the agent what the seller would accept and decide whether a higher offer is warranted based on your research and budget.

Once your offer is accepted, submit your full mortgage application. If you used a broker for your MIP, they will handle this process, completing the application form and submitting your documents to the chosen lender. The lender will order a property valuation to confirm the property is worth the purchase price and is suitable security for the mortgage. Basic valuations are sometimes free but check your lender's policy. The valuation is for the lender's benefit, not yours — it does not assess the property's condition in detail.

Processing times vary by lender but typically take two to four weeks from submission to formal mortgage offer. During this period, avoid any changes to your financial circumstances: do not change jobs, take out new credit, make large purchases, or move significant sums between accounts. Any changes may require the lender to reassess your application, causing delays or even a declined application.

While the mortgage is being processed, instruct a solicitor or conveyancer to handle the legal work (conveyancing). They will conduct property searches with the local authority, checking for planning issues, environmental risks, rights of way, and other factors that could affect the property. They will also review the seller's property information forms and the draft contract prepared by the seller's solicitor. Your solicitor will raise any queries (known as enquiries) with the seller's solicitor and keep you informed of progress.

Separately, commission a property survey for your own protection. A Level 2 homebuyer survey (£400-£700) is suitable for most standard properties built after 1900. For older properties, unusual constructions, or properties where you suspect significant issues, a Level 3 full building survey (£500-£1,500) provides a much more detailed inspection. If the survey reveals significant defects, you can renegotiate the price, request the seller address the issues before completion, or in serious cases, withdraw from the purchase entirely. The survey is your safety net against unexpected and expensive problems.

Once all searches are complete, enquiries are resolved, your mortgage offer is in hand, and both sides are satisfied, you can proceed to exchange of contracts. At this point, you sign the contract and pay a deposit (typically 10% of the purchase price, though sometimes 5% can be negotiated) which is held by the seller's solicitor. Exchange creates a legally binding agreement — if either party pulls out after exchange, they face significant financial penalties. A completion date is set, typically one to four weeks after exchange.

On completion day, your solicitor transfers the remaining purchase funds (including your mortgage loan) to the seller's solicitor. Once the seller's solicitor confirms receipt, the property is officially yours. Your estate agent will release the keys, and you can move in. Your solicitor will handle the registration of the property in your name with the Land Registry and payment of any stamp duty due to HMRC. As a first-time buyer purchasing a property under £425,000 in England, you will pay no stamp duty thanks to first-time buyer relief.