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First-Time Buyer Complete Guide: Buying Your First Home in the UK (2026)

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Buying your first home is the largest financial decision most people ever make. In 2026, with mortgage rates having softened slightly from 2023 peaks, it's more achievable — but still complex. This guide walks through every step from saving your deposit to getting the keys.

Step 1: How Much Deposit Do You Need?

The minimum deposit for most lenders is 5% of the property purchase price. So for a £250,000 home, you need at least £12,500. However, a 10% deposit (£25,000) unlocks significantly better mortgage rates, and a 15–20% deposit gives access to the best deals. In 2026, the typical first-time buyer deposit is around 15–20% in London and 10–15% outside.
  • •5% deposit: minimum, but highest mortgage rates
  • •10% deposit: significantly better rates available
  • •15–20% deposit: access to the best deals
  • •Gifted deposits from family are permitted by most lenders

Help to Buy and Government Schemes in 2026

Help to Buy Equity Loan ended in 2023, but other schemes remain. The Mortgage Guarantee Scheme supports 95% LTV mortgages. The First Homes scheme offers discounts of 30–50% on new builds for qualifying buyers in England. The Lifetime ISA remains the best saving vehicle for first-time buyers — a 25% government bonus on up to £4,000/year.
  • •Lifetime ISA: 25% bonus, up to £1,000 free/year
  • •First Homes scheme: 30–50% discount on new builds
  • •Shared Ownership: buy a share (10–75%) and pay rent on the rest
  • •Right to Buy: for eligible council/housing association tenants

Getting a Mortgage in Principle

Before you start viewing properties seriously, get a Mortgage in Principle (MIP) from a lender. This confirms roughly how much they'd lend you and shows estate agents you're serious. A MIP involves a soft credit check and takes 15–30 minutes. It's not a guarantee, but it sets your budget and strengthens your position when making offers.

The Buying Process: Step by Step

Once you have a MIP, the process follows these stages: 1. Search for properties within budget 2. Make an offer through the estate agent 3. Offer accepted — instruct a solicitor (conveyancer) 4. Full mortgage application submitted 5. Survey arranged and completed 6. Exchange of contracts (legally binding) 7. Completion — keys in hand

Hidden Costs to Budget For

Beyond the deposit, budget for these additional costs which often surprise first-time buyers:
  • •Stamp Duty: 0% for first-time buyers on properties up to £425,000 (2025/26 threshold)
  • •Solicitor/conveyancing fees: £1,500–£3,000
  • •Survey costs: £400–£1,500 depending on type
  • •Mortgage arrangement/product fee: £0–£2,000
  • •Moving costs: £500–£2,000
  • •Buildings insurance: required from exchange date
How long does buying a house take in the UK?+

From offer accepted to completion, expect 3–6 months on average. Chains (where multiple buyers/sellers are linked) take longer than chain-free purchases.

Should I use a mortgage broker or go direct to a lender?+

A whole-of-market mortgage broker has access to more deals than you'd find yourself and can advise on the best fit for your situation. Many charge no upfront fee (paid by lender commission). For first-time buyers especially, a broker is usually worth it.

#first time buyer#mortgage#house buying#UK#deposit#2026

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