First-time buyer guide.
The biggest purchase you'll make, wrapped in jargon and hidden costs. What deposit you really need, the free LISA bonus, and the extras that ambush every first-time buyer.
Buying a first home is the biggest purchase most people ever make, and it's surrounded by jargon, schemes and hidden costs designed — it can feel — to keep you confused. Here's the plain version: what you actually need, the free money you might be missing, and the costs that catch every first-time buyer out.
The deposit — how much you really need
Most lenders want at least 5% of the property's value as a deposit, but the more you can put down, the better the mortgage rate you'll get and the smaller your monthly payments. The jump in deal quality between a 5% and a 10% deposit is usually significant, so if you're close, it can be worth waiting a few months to cross a threshold.
A Lifetime ISA pays a 25% government bonus on up to £4,000 a year — that's up to £1,000 free, every year — towards a first home worth up to £450,000. Save the full £4,000 annually and that's £1,000 of free money towards your deposit each year. You must open it before turning 40, and there's a penalty for using it for anything other than a first home or retirement, so read the rules first. For most first-time buyers, it's close to a no-brainer.
The schemes worth knowing
Government help changes over time, so check what's current when you buy, but the categories to look into include shared-ownership schemes (buy a share, rent the rest), and any first-homes or regional schemes running at the time. Some come and go; a good mortgage broker will know exactly what's live and whether you qualify.
Get a mortgage in principle early
Before you fall for a place, get a mortgage in principle — a lender's indication of what they'd lend you. It tells you your realistic budget, and estate agents take you far more seriously as a buyer with one. It's usually free and doesn't commit you to anything.
The costs nobody warns you about
The deposit is the headline; these are the ambush:
- Stamp duty — first-time buyers pay nothing up to £300,000 (on homes up to £500,000), then it steps up. Check the actual bill before you commit.
- Solicitor / conveyancing — usually £1,000–£2,000 with searches.
- Survey — £400–£1,500. Skipping it to save a few hundred is how people inherit a five-figure problem.
- Mortgage fees, valuation, removals — and then the furniture, white goods and first repairs nobody budgets for.
Our true cost of buying a home guide breaks these down in full — read it before you set your deposit target, because the extras can easily add several thousand pounds.
Use a broker
For your first mortgage especially, a broker is usually worth it — they see deals across the market you can't access directly, know which lenders suit your situation, handle the paperwork, and often cost you nothing because the lender pays them. Going straight to your own bank gets you one option instead of the whole market.
Buying your first home is daunting, but it's a well-trodden path. Get the deposit growing (ideally in a LISA for the bonus), get a mortgage in principle, budget honestly for the extras, and lean on a broker. Do that and the confusing bits become a checklist instead of a fog.
Related reads
The true cost of buying a home
Stamp duty, surveys, solicitors and the first year nobody budgets for.
ISAs explained, in plain English
What an ISA actually is, the types, the allowance, and how to think about it.
Build a savings habit from scratch
Pay yourself first, name your pots, automate the move.
The big money decisions
Homes, pensions, protection and the choices that shape the next twenty years.