FINDING YOUR
WAY HOME?
Learn more about purchasing your first home. Get advice, tools, and resources tailored to first-time buyers.
Discover options for remortgaging, including saving money or releasing equity from your property.
Take your first steps into property investment with our comprehensive buy-to-let guidance.
Understand how Skilled Work Visa holders can purchase council properties under special schemes.
Learn how to release equity from your property to fund your retirement or other financial needs.
Discover the benefits and challenges of buying a second property for personal use or investment.
Explore the process of getting a mortgage for newly constructed properties.
Find out how expatriates can secure mortgages for properties in their home countries.
A first-time buyer mortgage is a loan designed for people purchasing their first home. Many lenders offer special terms, such as lower deposit requirements or incentives, to help first-time buyers get on the property ladder.
You’re generally considered a first-time buyer if you’ve never owned a property or had a mortgage before. Some lenders might also classify you as a first-time buyer if you haven’t owned property for several years.
The minimum deposit typically required is between 5% and 20% of the property’s value. For example, if you're buying a home worth £200,000, you’ll need at least £10,000 for a 5% deposit.
A mortgage interest rate is the percentage charged on your loan amount by the lender. Rates can be fixed (same rate for the duration of the mortgage term) or variable (subject to changes based on market conditions).
- Fixed-Rate Mortgage: Your interest rate stays the same for a set period (e.g., 2, 5, or 10 years).
- Variable-Rate Mortgage: Your rate can change based on the lender’s standard variable rate or
market rates.
- Tracker Mortgage: Tracks the Bank of England's base rate or a similar index.
- Interest-Only Mortgage: You only pay the interest on your loan monthly, with the full amount paid at
the end of the term (rare for first-time buyers).
Lenders assess your financial situation to determine how much you can borrow. This depends on factors
like:
- Your income and outgoings (debt, expenses).
- Your credit score.
- The size of your deposit.
Most lenders use an income multiplier (e.g., 4x your annual salary) to determine affordability.
This is a financial assessment conducted by the lender to ensure you can afford the mortgage repayments. They’ll look at your income, outgoings, credit history, and future spending to make sure the mortgage is sustainable.
Your credit score plays a crucial role in your mortgage approval. A higher score means you're more likely to get better interest rates and terms. If your credit score is low, you may need to pay a higher rate or be required to have a larger deposit.
Various schemes can help first-time buyers, such as:
- Help to Buy: Allows you to purchase a new-build home with just a 5% deposit, with a government
loan of up to 20% of the property value (in some regions).
- Shared Ownership: You purchase a percentage of the property (25%–75%) and pay rent on the rest,
with the option to buy a larger share later.
- First Homes Scheme: Offers homes at a discount to first-time buyers, usually targeting key
workers or residents in that council area.
1. Save for a deposit.
2. Check your credit scor and improve it if necessary.
3. Get a mortgage in principle (MIP): A preliminary agreement from a lender stating how much you
can
borrow (subject to final checks).
4. Find a propert within your budget.
5. Apply for a mortgag once you’ve had an offer accepted on a home.
6. Get a valuation and surve to check the property’s condition.
7. Receive your mortgage offe from the lender after approval.
8. Complete the legal process (conveyancing) with the help of a solicitor.
9. Exchange contract and pay your deposit.
10. Completion: The property is now legally yours, and you move in!
Stamp Duty is a tax you pay when buying property over a certain value. Scotland, England Wales and Northern Ireland offer exemptions or discounts for first-time buyers on properties under a certain threshold. Check your local Conveyancer for latest regulations, as this varies by region.
Legal/Conveyancing Fees: For the solicitor or conveyancer managing the legal aspects of your purchase.
- Survey/Valuation Fees: To assess the condition of the property.
- Stamp Duty (if applicable): A property tax based on the value of the home.
- Home Insurance: Required by most lenders to cover building and contents.
- Moving Costs: Hiring a removal company, packing materials, etc.
- Maintenance/Repairs: Especially important if the property needs work after purchase.
If your mortgage application is denied, don't panic. You can:
- Review and improve your credit score.
- Save for a larger deposit.
- Look for more affordable properties.
- Speak to a mortgage broker who may help you find lenders suited to your financial situation.
Yes, many lenders allow you to overpay on your mortgage either monthly or as a lump sum. However, check with your lender to see if there are any limits on how much you can overpay without incurring a penalty.
If you're on a fixed-rate mortgage, your payments won’t change until your term ends. If you’re on avariable rate, your payments could increase. To protect yourself, consider switching to a fixed-rate mortgage or speak with your lender to explore refinancing options.
Conveyancing is the legal process of transferring ownership of property from one person to another. It involves ensuring that all legal and administrative tasks related to the property purchase or sale are completed, such as checks on the property’s title, drafting contracts, and handling the transfer of funds.
Yes, you’ll need a qualified solicitor or licensed conveyancer to handle the legal aspects of buying or selling a property. They will ensure that the transaction is legally sound and handle all necessary paperwork.
- Solicitor: A solicitor is a fully qualified lawyer who can handle all legal matters, including
conveyancing. They may charge more due to their broader legal expertise.
- Licensed Conveyancer: A conveyancer specializes only in property transactions, so they may offer a
more cost-effective option for straightforward property sales or purchases.
The conveyancing process typically takes 8 to 12 week , but this can vary depending on factors such as the complexity of the transaction, whether there’s a property chain, and how quickly all parties respond to queries and paperwork.
1. Instruct a solicitor or conveyancer.
2. Draft contract (for sellers) or review contract (for buyers).
3. Searche are conducted by the buyer’s solicitor (e.g., local authority searches, drainage, and
environmental checks).
4. Exchange contracts: This is the point at which both parties are legally committed to the
transaction.
5. Completion: The buyer transfers the funds, and the property legally changes hands.
6. Registration: The buyer’s solicitor registers the property with the Land Registry.
Conveyancing searches are checking your solicitor, or conveyancer will carry out to find out more about the
property and surrounding area. Common searches include:
- Local authority search: Checks for any planning issues or restrictions.
- Environmental search: Ensures the property is not built on contaminated land or flood-prone areas.
- Water and drainage search: Confirms whether the property is connected to public water and sewage systems.
- Title search: Confirms the legal ownership of the property and any legal restrictions or covenants.
Conveyancing costs vary depending on the property’s value and location, but typically range between £800 and £1,50 . This includes both solicitor fee and disbursement (expenses such as searches, Stamp Duty, and Land Registry fees).
Disbursements are additional costs that your solicitor or conveyancer will pay on your behalf during the conveyancing process. Common disbursements include:
- Search fee (e.g., local authority, environmental).
- Land Registry fee (for registering the property in the buyer’s name).
- Stamp Duty Land Tax (SDLT): A tax on properties over a certain threshold.
- Bank transfer fee for handling the transfer of funds.
Stamp Duty Land Tax (SDLT) is a tax on property purchases over a certain value in England and Northern Ireland. First-time buyers and homes under certain value may qualify for exemptions or lower rates. Rates vary based on the property’s price and buyer status (first-time buyer, second home, etc.).
The exchange of contracts is the point at which the buyer and seller sign and legally commit to the transaction. The buyer typically pays a deposit (usually 10% of the property’s value) at this stage. Once the contracts are exchanged, neither party can back out without significant financial penalties.
Completion is the final stage of the conveyancing process, where ownership of the property is officially
transferred to the buyer. On completion day:
- The buyer’s solicitor transfers the purchase funds to the seller’s solicitor.
- The keys are handed over to the buyer.
- The property is now legally the buyers.
In the UK, there is no cooling-off perio once contracts have been exchanged. Both parties are legally committed to the sale, and pulling out at this stage would result in penalties, including the forfeiture of the buyer’s deposit.
A property chain refers to a series of linked property transactions, where the sale of one property depends on the purchase of another. Property chains can slow down the conveyancing process, as delays with one transaction can affect the entire chain.
- Complex property chains.
- Incomplete paperwor or slow responses from either party.
- Issues with searches, such as planning permission or boundary disputes.
- Problems with mortgage approval.
- Discrepancies in the property’s titl or legal documentation.
While not mandatory, it is highly recommended to have a property surve carried out. A survey assesses
the condition of the property and highlights any structural issues. Common types include:
- Homebuyer’s Report: A mid-level survey suited to most properties.
- Full Structural Survey: Ideal for older or more complex properties.
Once contracts are exchanged, both parties are legally bound to complete the transaction. If you pull out after this point, you could face significant financial penalties, including losing your deposit (if you are the buyer) or compensating the buyer (if you are the seller).
Yes, most mortgage lenders will require you to have buildings insuranc in place from the point of exchange of contracts. This ensures that the property is covered in case of damage before thetransaction is finalized.
The Land Registr is a government body responsible for maintaining records of property ownership in England and Wales. Once the sale is complete, your solicitor will register the new ownership with the Land Registry. This ensures your legal ownership is recorded.
If issues arise after completion (such as boundary disputes or defects that weren’t disclosed), it may be possible to take legal action against the seller. Some issues might also be covered by warranties or indemnity insurance, which can protect you against legal costs.
Indemnity insurance is a type of insurance that protects the buyer and lender against specific legal risks related to the property. It’s often used if there are issues with the property’s title, planning permission, or if documents are missing, and can help ensure the sale proceeds smoothly.