Buying your first home is one of the biggest financial decisions you’ll ever make. It can feel overwhelming — but with the right preparation, the right knowledge, and the right team around you, it’s absolutely achievable. This guide walks you through every step from saving your deposit to getting the keys.
How Much Deposit Do You Need?
Most lenders require a minimum deposit of 5–10% of the property’s purchase price. A larger deposit (15–25%) gives you access to better mortgage rates and lower monthly repayments. For a £200,000 home, that means saving between £10,000 and £50,000.
| Property Price | 5% Deposit | 10% Deposit | 20% Deposit |
|---|---|---|---|
| £150,000 | £7,500 | £15,000 | £30,000 |
| £200,000 | £10,000 | £20,000 | £40,000 |
| £300,000 | £15,000 | £30,000 | £60,000 |
First-Time Buyer Schemes in 2026
Lifetime ISA (LISA)
Open a Lifetime ISA before age 40 and the government adds a 25% bonus on contributions up to £4,000 per year — that’s up to £1,000 free money annually. You can use the funds to buy your first home (up to £450,000) or keep it for retirement.
Shared Ownership
Buy a share of a property (25–75%) and pay rent on the remainder. You can increase your share over time through “staircasing.” Great for people who can’t yet afford to buy outright.
First Homes Scheme
Eligible first-time buyers and key workers can buy certain new-build homes at a 30–50% discount from the market price. The discount stays with the property when you sell.
How Much Can You Borrow?
Most lenders will offer between 4 and 4.5 times your annual income as a mortgage. On a £35,000 salary, that’s roughly £140,000–£157,500. If you’re buying with a partner and your combined income is £65,000, you could borrow up to £292,500.
The Step-by-Step Buying Process
- Step 1: Save your deposit — use a LISA for the 25% government bonus
- Step 2: Check your credit score — fix any errors before applying for a mortgage
- Step 3: Get a mortgage in principle — shows sellers you’re serious
- Step 4: Find a property — use Rightmove, Zoopla, or a local estate agent
- Step 5: Make an offer — research local sold prices first
- Step 6: Instruct a solicitor (conveyancer) — they handle all the legal paperwork
- Step 7: Full mortgage application — the lender will survey the property
- Step 8: Exchange contracts — you’re now legally committed
- Step 9: Completion — get the keys!
Hidden Costs of Buying a Home
- Stamp Duty — first-time buyers pay 0% on the first £425,000
- Solicitor / conveyancing fees — £1,000–£2,500
- Survey costs — £400–£1,500 depending on type
- Mortgage arrangement fee — £0–£2,000
- Moving costs — £300–£1,500
- Buildings and contents insurance — £200–£400/year
Frequently Asked Questions
Can I buy a house with a 5% deposit?
Yes. The Mortgage Guarantee Scheme supports lenders offering 95% mortgages, meaning you only need a 5% deposit. However, rates are higher than with a larger deposit, so you’ll pay more interest overall.
How long does it take to buy a house?
From having an offer accepted to completion typically takes 8–12 weeks. The full process from starting to save for a deposit can take 1–5 years depending on your income and the local property market.
Is it better to buy or rent in 2026?
It depends on your circumstances, location, and how long you plan to stay. Buying builds equity over time but ties up capital and comes with maintenance costs. Renting offers flexibility. In most UK cities, buying becomes financially advantageous within 3–5 years of ownership.
Disclaimer: This article is for informational purposes only and does not constitute financial or mortgage advice. Please consult a qualified mortgage adviser before applying for a mortgage.