Everything you need to know about buying your first home uk in the UK.
Before you start searching for a property, you need a clear picture of what you can afford. Lenders typically offer mortgages of four to four-and-a-half times your annual income, though some will stretch to five or even six times in certain circumstances. You will also need a deposit—the minimum is usually 5% of the property price, but a larger deposit (10%, 15% or 20%) will unlock better mortgage rates and reduce your monthly payments.
Check your credit report with all three UK credit reference agencies (Experian, Equifax and TransUnion) and resolve any errors or outstanding issues. Register on the electoral roll if you are not already, as this is one of the simplest ways to improve your credit score. Start reducing unnecessary spending and saving consistently to build your deposit and demonstrate financial discipline to lenders.
A mortgage agreement in principle (AIP)—also known as a decision in principle—is a conditional offer from a lender confirming how much they are willing to lend you, subject to a full application and property valuation. Getting an AIP before you start house-hunting gives you a realistic budget and shows estate agents and sellers that you are a serious buyer.
An AIP is usually valid for 60 to 90 days and involves a soft or hard credit check, depending on the lender. A mortgage broker can help you find the best deal across the whole market and manage the AIP process on your behalf.
💡 Speaking to a mortgage broker early in the process is one of the most valuable steps you can take. Brokers have access to thousands of mortgage products—including deals not available directly from lenders—and can advise on how much you can realistically borrow, which deposit level optimises your rate, and which lenders are most likely to approve your application.
Search for properties using online portals such as Rightmove and Zoopla, and register with local estate agents. Visit a range of properties to develop a sense of what you can get for your budget. When you find the right property, make an offer through the estate agent. In England and Wales, offers are not legally binding until contracts are exchanged.
Your offer may be below the asking price, at the asking price, or above it in a competitive market. The estate agent is legally required to pass all offers to the seller. If your offer is accepted, the property is taken off the market (in theory) and you move to the formal mortgage application stage.
Once your offer is accepted, you submit a full mortgage application to your chosen lender. You will need to provide proof of income (payslips, P60, tax returns if self-employed), bank statements, proof of identity and address, and details of the property. The lender will carry out a credit check and commission a property valuation to ensure the property is worth the purchase price.
The standard lender valuation is a basic check and does not constitute a survey. You should commission your own homebuyer survey or building survey to identify any structural issues, defects or maintenance concerns. Discovering problems before exchange gives you the opportunity to renegotiate the price or withdraw.
Conveyancing is the legal process of transferring property ownership. You will need to instruct a solicitor or licensed conveyancer as soon as your offer is accepted. They will conduct searches (local authority, environmental, water and drainage), review the title documents, raise enquiries with the seller’s solicitor and prepare the contract.
Conveyancing typically takes 8 to 12 weeks, but it can take longer if there are complications such as a property chain, leasehold issues or problems revealed by the searches. Choose a conveyancer with experience in residential purchases and check their reviews and accreditation.
Exchange of contracts is the point at which the transaction becomes legally binding. Both buyer and seller sign identical contracts, and you pay your deposit (usually 10% of the purchase price, though this can sometimes be negotiated down to 5%). Once contracts are exchanged, neither party can withdraw without significant financial penalties.
A completion date is set at exchange—typically one to four weeks later, though it can be on the same day in some cases. From the moment of exchange, you are responsible for insuring the building, so make sure your buildings insurance is in place before exchange.
⚠️ Until contracts are exchanged, either party can withdraw from the transaction without legal penalty. In England and Wales, there is no legal protection against “gazumping” (the seller accepting a higher offer from another buyer) or “gazundering” (the buyer reducing their offer at the last minute). This is why speed through the conveyancing process matters.
On the completion date, your mortgage lender releases the loan funds to your solicitor, who transfers the money to the seller’s solicitor. Once the funds are received, the keys are released and the property is yours. Your solicitor will register the change of ownership with the Land Registry and pay any Stamp Duty Land Tax on your behalf (from the funds you have provided).
Before completion, ensure all utilities are set up, redirect your post via Royal Mail, and arrange building and contents insurance. On the day itself, do a final inspection of the property to check that everything agreed in the sale is in order before collecting the keys.
Buying your first home is a complex process with many moving parts. A mortgage broker can guide you through every step, from getting your finances in order to choosing the right mortgage product and navigating the application process. Find a mortgage broker through Nesto to make your first home purchase as smooth as possible.
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