Buying your first home: the practical order

1. Work out the cash you can use

Set a deposit budget after allowing for legal fees, property tax, a survey and moving costs. Keep an emergency reserve. If family is helping, clarify whether the money is a gift or a loan and keep the source-of-funds evidence.

2. Set a monthly budget

List income after deductions and all commitments, then include council tax, utilities, insurance, maintenance and service charges. A lender’s maximum borrowing figure is not the same as your comfortable payment. Test a higher rate as well as your starting illustration.

3. Discuss an agreement in principle

An agreement in principle indicates what a lender might consider using initial information. It can involve a credit search. It is not a binding offer and does not confirm that the property is acceptable.

4. Make the offer and appoint professionals

Once a price is agreed, appoint a solicitor and discuss the appropriate survey. The lender’s valuation protects its lending decision and is not a substitute for your own assessment of condition.

5. Apply, review and complete

Provide the requested evidence accurately and respond to queries. Read the mortgage offer, fees, early repayment charges and insurance needs. Your solicitor manages the legal commitment and completion. The process differs in Scotland, so take jurisdiction-specific advice.

A worked deposit example

On a £300,000 home, a £30,000 deposit leaves a £270,000 mortgage: 90% loan-to-value. That is arithmetic, not an indication that a lender will offer the loan. Legal costs, purchase tax, surveys, moving and a reserve need separate cash. If the lender’s valuation is lower than the agreed price, revisit the funding before committing.

First-time buyer status and purchase tax

For a qualifying first home in England or Northern Ireland costing no more than £500,000, SDLT relief currently gives a nil rate on the first £300,000 and 5% on the balance up to £500,000. Above £500,000 that relief is unavailable. All purchasers must qualify; previous ownership abroad can matter. Ask the conveyancer to confirm your position, including any non-resident surcharge. Scotland uses LBTT and Wales uses LTT, with different rules.

View the costs of the home as well as the price

For a flat, ask about lease length, ground rent, service charges, reserve funds and planned major works. For any property, think about condition, insurance, running costs and work needed before moving in. Keep a shortlist with the questions still unanswered for each home; the cheapest asking price may not give the lowest ongoing cost.

Before you exchange

Ask your solicitor to explain the title, searches and enquiries, and confirm the completion money and any insurance required from exchange. Read the mortgage offer and resolve conditions or expiry concerns. Keep your adviser informed about income, debts or deposit changes; an offer does not remove the need to report material changes.

Questions before you start