Buying your first home is an exciting milestone, but getting on the property ladder can feel daunting when you’re faced with saving a deposit, finding an affordable property and working out which mortgage is right for you.
The good news is that there are still several routes into home ownership for first-time buyers in the UK. From building your deposit with a Lifetime ISA to considering 95% mortgages, Shared Ownership and other first-time buyer schemes, understanding your options can make the process feel much more manageable.
Before you start scrolling through property listings and imagining where you’ll put the sofa, it helps to get your finances in order and understand what you can realistically afford. Here are some of the key steps to consider when preparing to buy your first home.
Start Saving for Your Deposit Early
Unless you’re fortunate enough to receive help towards your deposit or have already built up substantial savings, saving for your first home will probably take time. Starting as early as possible gives you more opportunity to build your deposit while also putting money aside for the other costs involved in buying and moving home.
Some mortgages may be available with a 5% deposit, while putting down a larger deposit can potentially give you access to a wider choice of mortgage deals. Rather than concentrating solely on the deposit, remember to budget for costs such as conveyancing, surveys, mortgage fees, removals and any property tax you may need to pay.
Consider a Lifetime ISA
If you’re aged between 18 and 39, a Lifetime ISA (LISA) could help you save towards your first home. You can currently pay in up to £4,000 each tax year, with the government adding a 25% bonus — potentially adding up to £1,000 a year to your savings.
There are important rules to understand before opening one. To use your LISA towards your first home without paying a withdrawal charge, the property must currently cost £450,000 or less, you must buy with a mortgage and the purchase must take place at least 12 months after you make your first payment into the account.
Help to Buy ISAs are no longer available to new applicants, although people who already have one can continue paying into it until November 2029 and can claim the government bonus until November 2030.
Research Your Mortgage Options Carefully
There are many different mortgage options available to first-time buyers, and the right choice will depend on factors such as your income, deposit, credit history and the value of the property you hope to buy.
You may find mortgages available with a 5% or 10% deposit, while having a larger deposit can potentially give you access to a wider range of deals. It’s worth comparing the overall cost of a mortgage rather than concentrating solely on the headline interest rate, as arrangement fees and other charges can make a difference.
A mortgage broker may also be able to help you understand which products you’re eligible for and explain the differences between options such as fixed and variable-rate mortgages.
Explore First-Time Buyer Schemes
If buying a home on the open market isn’t currently affordable, it’s worth researching the schemes available to first-time buyers. Eligibility and availability vary, and some schemes are specific to England, Scotland, Wales or Northern Ireland.
In England, the First Homes scheme offers eligible first-time buyers certain new-build homes at a discount of at least 30% compared with their market value. There are income limits and other eligibility criteria, so check the current rules before relying on a scheme as part of your buying plans.
Shared Ownership is another possible route into home ownership. Instead of purchasing the entire property initially, you buy a share of the home and pay rent to the landlord on the remaining share. This can reduce the amount you need to borrow and potentially lower the deposit required.
Eligibility and affordability depend on your circumstances and the property you’re hoping to buy. There are household income limits for the Shared Ownership scheme, while individual providers will also assess whether you can afford the share you intend to purchase. Understanding the minimum income requirements for shared ownership and the wider eligibility criteria can help you decide whether this route could work for your financial circumstances.
Remember to consider the full monthly cost rather than looking at the mortgage payment alone. Depending on the property, you may also need to budget for rent on the remaining share, service charges and other housing costs.
Check and Improve Your Credit Record
Before applying for a mortgage, it’s worth checking your credit reports so you can see the information lenders may use when assessing your application. Different lenders have their own affordability and lending criteria, so there isn’t a particular credit score that guarantees you’ll be accepted for a mortgage.
Check your reports carefully for mistakes and make sure your personal details and address history are correct. If you find an error, contact the relevant credit reference agency or organisation that supplied the information and ask for it to be corrected.
There are also some sensible financial habits that can help when you’re preparing for a mortgage application. Make sure you’re registered on the electoral roll at your current address, pay bills and credit commitments on time and try to reduce outstanding debts where possible.
Avoid making lots of applications for new credit shortly before applying for a mortgage, and don’t assume that closing every old credit account will automatically improve your chances. The aim is to demonstrate that you can manage your existing financial commitments responsibly.
Mortgage lenders will also look at affordability, including your income, regular expenditure and existing financial commitments, when deciding how much they’re prepared to lend. Getting your finances organised before you start applying can therefore put you in a much better position when you’re ready to buy.
Be Realistic About What You Can Afford
It’s easy to become emotionally invested when you’re searching for your first home, particularly once you start viewing properties and imagining yourself living there. However, stretching your budget too far could leave you with very little room for unexpected costs or changes to your circumstances.
Before you begin viewing homes, work out what you can comfortably afford each month rather than focusing only on the maximum amount a mortgage lender may be prepared to offer you. Remember to factor in household bills, council tax, insurance, maintenance and repairs alongside your mortgage payments.
It can also help to separate your property wish list into ‘must-haves’ and ‘nice-to-haves’. You may need to compromise on things such as the size of the garden, an additional bedroom or your ideal location to find a home that works within your budget.
Most importantly, remember that your first property doesn’t have to be your forever home. It can be your first step onto the property ladder, giving you somewhere to make your own while you build equity and work towards your longer-term goals.
Get a Mortgage Agreement in Principle
Before you start seriously viewing properties, consider getting a mortgage Agreement in Principle (AIP), sometimes called a Decision in Principle. This gives you an indication of how much a lender may be prepared to lend based on some basic information about your income, spending and financial circumstances.
Having an Agreement in Principle can give you a clearer idea of your property budget and may also show estate agents and sellers that you’ve already started preparing your finances.
An Agreement in Principle isn’t a mortgage offer or a guarantee that your mortgage application will be accepted. You’ll still need to complete a full application once you’ve found a property, and the lender will carry out further affordability and eligibility checks.
It’s also worth checking whether the lender will carry out a soft or hard credit search when providing an Agreement in Principle, particularly if you’re comparing several lenders.
Don’t Forget the Other Costs of Buying a Home
Your deposit is likely to be the biggest upfront expense when buying your first home, but it won’t necessarily be the only one. Building some extra money into your savings target can help prevent the additional costs of buying and moving from taking you by surprise.
Depending on your purchase, you may need to budget for conveyancing and legal fees, property searches, a survey, mortgage arrangement or valuation fees, removals and buildings insurance. It’s also sensible to keep some savings available for decorating, furniture and unexpected repairs once you move in.
Check Whether You’ll Pay Stamp Duty
If you’re buying a property in England or Northern Ireland, you may qualify for first-time buyer Stamp Duty Land Tax (SDLT) relief.
Currently, eligible first-time buyers purchasing a property for £500,000 or less pay no SDLT on the first £300,000 and 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, first-time buyer relief isn’t available and the standard residential SDLT rates apply.
Property taxes and first-time buyer rules are different in Scotland and Wales, so check the rules that apply where you’re buying. Tax thresholds can also change, making it sensible to check the latest government guidance when you’re ready to purchase.
First-Time Buyer Checklist
Buying your first home can feel overwhelming, but breaking the process down into smaller steps makes it much easier to manage. Before you begin seriously searching for a property:
- Start building your deposit and a separate fund for buying costs.
- Check whether a Lifetime ISA could help you reach your savings goal.
- Review your credit reports and correct any errors.
- Work out a monthly housing budget you can comfortably afford.
- Research mortgages and first-time buyer schemes available to you.
- Consider whether Shared Ownership could be an appropriate alternative.
- Get a Mortgage Agreement in Principle when you’re ready to start viewing.
- Budget for legal fees, surveys, moving costs and any Stamp Duty or other property taxes that may apply.
- Check the latest government rules before making financial decisions, as schemes and thresholds can change.
Taking Your First Step Onto the Property Ladder
Getting on the property ladder as a first-time buyer may take time, particularly if you’re starting from scratch with your deposit. However, understanding your finances, researching the support available and preparing before you begin house hunting can make the process feel far less daunting.
Try not to rush simply because you’ve found a property you love. Your first home is a major financial commitment, so give yourself time to compare your options, ask questions and seek professional advice where you need it.
The goal isn’t necessarily to find your perfect forever home at the first attempt. It’s to find a home that suits your needs, works within your budget and gives you a comfortable first step into home ownership.
Please note: This article is for general information only and does not constitute financial or mortgage advice. Mortgage products, government schemes, eligibility criteria and tax rules can change. Always check current information and consider seeking advice from a suitably qualified professional before making financial decisions.
Updated: September 2026