Buying your first home is an exciting milestone, but it can also feel overwhelming. With the right information, you can navigate the process with ease. With so much to consider, from deposits and mortgages to surveys and legal fees, it’s easy to feel a little daunted. This blog will take you through what you may wish to consider as a first time buyer in the UK, ensuring you’re well-prepared for the journey ahead.

Understanding your budget

Before you start browsing for homes, it’s essential to know how much you can afford.

This means considering:

• Your deposit – typically, you’ll need at least 5-10% of the property’s value, however, the more you can save, the better your mortgage rate will be
• Mortgage options – lenders will assess your income, outgoings, and credit history to determine how much they’ll lend you and your “loan to value” (LTV) ratio, which compares your mortgage amount to the property’s value, will impact interest rates
• Additional costs – don’t forget expenses like solicitor fees, survey costs, moving costs, and stamp duty (though first time buyers may be exempt up to a certain limit). You should also budget for furnishing your new home and unexpected repairs.

Tip: Book a free consultation with Save On Mortgages to explore your best mortgage options and find a deal that suits your budget.

Saving for a deposit

The more you save for a deposit, the better mortgage deal you’ll likely get.

Here’s how you can build your savings:

• Help to Buy and Lifetime ISAs – these government-backed schemes can boost your savings, and a Lifetime ISA allows you to save up to £4,000 a year with a 25% government bonus
• Reduce unnecessary expenses – cutting back on non-essentials can accelerate your savings maybe consider cooking at home, cancelling unused subscriptions, and reviewing utility bills
• Set a savings goal – having a target can keep you motivated and on track. Research average house prices in your desired area to set a realistic savings target.

Tip: Consider setting up an automatic monthly amount of your income to go into a dedicated savings account three days after you're paid to build your deposit steadily.

Understanding mortgages

A mortgage is a loan secured against your property, and choosing the right one is crucial.

There are different types available, briefly:

• Fixed rate mortgages – your interest rate stays the same for a set period, typically 2, 5, or 10 years and this provides stability in monthly payments
• Variable rate mortgages – your interest rate fluctuates with the market so these can be riskier but sometimes offer lower initial rates
• Help to Buy mortgages – designed specifically for first time buyers, these include government-backed schemes that require smaller deposits
• Tracker mortgages – these move in line with the Bank of England’s base rate, meaning your payments could increase or decrease.

It’s a good idea to speak to a mortgage adviser who can help you find the best deal based on your financial situation. Advice from Save On Mortgages is free so please don’t hesitate if you have any questions.

Tip: Always check the total cost of the mortgage over its lifetime, not just the monthly repayment amount.

Finding the right property

Once you have your budget in place, it’s time to start house-hunting. Here are some key considerations:

• Location – think about transport links, schools, amenities, and future development plans as a great location can add long-term value to your property or home
• Property type – do you want a house, flat, new build, or an older property and remember new builds often come with warranties but may have higher purchase prices
• Condition – a fixer-upper may be cheaper but could come with hidden costs so do consider the cost of renovations when comparing properties
• Leasehold versus freehold – flats are often leasehold, meaning you pay ground rent and service charges. Freehold properties mean you own the land outright. Houses are normally freehold.

Tip: Visit properties at different times of the day to get a better feel for the neighbourhood.

Making an offer

When you find a property you love, you’ll need to make an offer. Here’s how:

1. Research similar properties to determine a fair price
2. Decide on your maximum offer
3. Submit your offer through the estate agent
4. Be prepared for negotiations – sellers often expect a little back and forth.

Tip: If the property has been on the market for a while, you may be able to negotiate a lower price.

The legal process

Once your offer is accepted, you’ll need a solicitor or conveyancer to handle the legal aspects of your

purchase, including:

• Searches – checking for planning restrictions, flood risks, and other potential issues
• Contracts – ensuring the legal paperwork is in order
• Exchange of contracts – this is the point where the sale becomes legally binding.

Tip: Choose a solicitor or conveyancer who specialises in property transactions to keep the process smooth.

Getting a mortgage offer

When  your offer is accepted, you’ll need to finalise your mortgage. Your lender will arrange a valuation to ensure the property is worth what you’re borrowing. Once everything is checked, you’ll receive a formal mortgage offer.

Tip: Read your mortgage offer carefully to understand all the terms before signing. After all this is probably going to be the single biggest purchase you're likely to make.

Surveys and inspections

You may wish to have a survey done on your new home to uncover any potential issues.

The main types of surveys include:

• Basic valuation – conducted by your mortgage lender
• Homebuyer’s report – a more detailed check covering structural issues
• Full structural survey – recommended for older properties or those in need of major renovations.

Tip: A detailed survey can save you from unexpected repair costs later.

Exchanging contracts and completion

Once your solicitor is satisfied with all the checks, you’ll exchange contracts with the seller. This legally commits you to the purchase. Shortly after, completion takes place – this is when you receive the keys to your new home.

Tip: Arrange buildings insurance from the date of exchange, as you’re now responsible for the property.

Moving in

The final step is moving in! To make the transition smoother:

• Book a removal company early
• Update your address with banks, utility providers, and subscriptions
• Familiarise yourself with your new home’s features (boiler, fuse box, water stopcock etc.).

Tip: Pack a ‘moving day essentials’ box with things like tea, snacks, phone chargers, and important documents.

Final thoughts

Buying your first home is a significant achievement, and while the process may seem complicated, taking it step by step will make it much more manageable. Seek professional advice where necessary, stay organised, and most importantly, enjoy the journey to homeownership!

If you're looking for free and friendly expert mortgage advice, Save On Mortgages is here to help.

Contact us today to understand a bit more about what you can afford and take the first steps to find the best mortgage deals tailored to your needs.

If you’re a first time buyer, we hope this guide has helped you feel more confident about the process.

Happy house-hunting!