For a first-time buyer, purchasing their first home is one of the most exciting, yet potentially daunting, experiences. It's a significant financial and emotional journey. This guide will walk you through every step, from getting your finances in order to finally collecting your keys.

Phase 1: Getting ready to buy – The foundation

Before you, as a first-time buyer, even start looking at properties, laying a strong financial groundwork will put you in the best position you can possibly be in.

1. Build your deposit & understand all costs

Your deposit is the upfront payment you make towards your home's purchase price. Generally, the larger your deposit, the better mortgage deals you can access.

• How much to save: Lenders typically require a minimum deposit of 5% of the property's value, but 10% or even 15-20% can unlock lower interest rates.
  • Saving Strategies:
    • Lifetime ISA (LISA): If you're aged 18-39, you can save up to £4,000 per year, and the government adds a 25% bonus (up to £1,000 per year). Funds can be used for your first home (up to £450,000) or retirement.
    • Budgeting & Cutting Costs: Track your spending, set realistic savings goals, and look for areas to reduce non-essential outgoings.

Beyond the Deposit: Other Crucial Costs

Many first-time buyers underestimate the additional expenses involved. Budget for:

• Stamp Duty Land Tax (SDLT): A government tax on property purchases in England and Northern Ireland. For first-time buyers, as of April 1, 2025:
  • 0% on properties up to £300,000.
  • 5% on the portion between £300,001 and £500,000.
  • If the property's purchase price is more than £500,000, first-time buyer relief does not apply, and standard residential SDLT rates are charged on the total price.
  • Note: SDLT rates and thresholds can change, always check the latest government guidance.
• Mortgage Fees:
  • Arrangement/Product Fee: Charged by the lender for setting up your mortgage (can be £0 - £2,000+). Often added to the loan.
  • Valuation Fee: The lender's survey to confirm the property's value (can be £0 - £1,500+ depending on property value and lender policy).
  • Mortgage Broker Fee: Many brokers, including IMC Mortgage Brokers, often support the first-time buyer specifically, and charge a fee for their service. The fee covers expert advice, research, and application management. This fee structure ensures transparent pricing for the dedicated support you receive. We will always clearly outline any fees upfront so you know exactly what to expect.
• Legal Fees (Conveyancing): The cost for a solicitor or conveyancer to handle the legal transfer of property (typically £1,000 - £2,000+, plus disbursements).
• Survey Fees: To assess the property's condition (can be £300 - £1,500+ depending on the type of survey).
• Removal Costs: For moving your belongings.
• Initial Home Set-up: First month's council tax, utility bills, redecorating, essential repairs.

2. Explore government schemes & support

The UK government offers various schemes to help first-time buyers onto the property ladder:

• Shared Ownership: Buy a share (e.g., 25% to 75%) of a property from a housing association and pay rent on the rest. You can increase your share over time ('staircasing').
• First Homes Scheme: New-build homes offered at a discount of at least 30% (and sometimes up to 50%) to eligible first-time buyers with a local connection or key worker status.
• Right to Buy: If you live in a council home, you, as a first-time buyer, might be able to buy it at a discount.

Always research eligibility criteria and speak to a mortgage advisor about which schemes might suit your circumstances.

Phase 2: Securing your mortgage – The application process

Once your finances are in order, as a first-time buyer, your next steps focus on finding and securing the right mortgage.

Step 1: Calculate your borrowing power

This is your first, crucial financial checkpoint. Understanding what you could borrow will set your realistic property budget.

• Action: Use our mortgage affordability calculator. Input your income, outgoings, and any debts to get an estimated maximum loan amount.
• Why it matters: It provides a rough budget for your house hunt and helps you avoid falling in love with properties you can't afford.

Step 2: Check your credit score

Your credit score is a vital indicator of your financial responsibility and directly influences lenders' decisions and the interest rates you're offered.

• Action: Access your credit reports from all three major UK credit reference agencies: Experian, Equifax, and TransUnion. Many offer free services to check your score.
• Why it matters: Lenders use these reports to assess your risk. Reviewing them helps you identify and correct any errors, and gives you a chance to improve your score (e.g., by ensuring you're on the electoral roll, paying bills on time, and reducing outstanding debt) before applying.

Step 3: Partner with a mortgage broker

A good mortgage broker is invaluable for first-time buyers. We simplify the complex mortgage market and act as your advocate.

• Action: Schedule a free initial consultation with an independent mortgage broker like us. Be prepared to discuss your full financial situation, including income, expenses, and any existing debts.
• Why it matters: We have access to a vast array of mortgage products from various lenders, including deals not available directly to the public.Our expert advisors will assess your first-time buyer circumstances, advise on the best products for you, and create a tailored plan. Crucially, we can save you time, stress, and potentially money by finding competitive rates and navigating the application process on your behalf.

Step 4: Get an Agreement in Principle (AIP)

An AIP (also known as a Decision in Principle or Mortgage in Principle) is a conditional offer from a lender.

• Action: Your mortgage broker will help you apply for an AIP with a chosen lender. This typically involves a 'soft' credit check, which won't impact your credit score.
• Why it matters: An AIP provides a strong indication of how much a lender might lend you. It’s highly valued by estate agents and sellers as it demonstrates you are a serious and credible first-time buyer, putting you in a stronger position when making an offer on a property.

Step 5: Make your full mortgage application

This is the formal step where you apply for the actual mortgage loan.

• Action: With your broker's guidance, submit a comprehensive application to the chosen lender. This involves a 'hard' credit search (visible on your credit file) and providing extensive documentation (payslips, bank statements, ID, proof of address, etc.).
• Why it matters: This is the commitment stage. The lender will thoroughly underwrite your application. Your broker will manage communication with the lender, ensuring all necessary information is provided promptly, reducing delays and increasing the likelihood of approval. A declined application at this stage can impact your credit score, so ensure you're fully prepared and advised by your broker.

Phase 3: Finding your home & the legal journey

With your finances and mortgage pre-approval in hand, as a first-time buyer, you're ready for the exciting search and the essential legal steps.

6. The property search

This is where your dreams start to take shape.

• Define your needs: Create a list of 'must-haves' vs. 'nice-to-haves' (location, number of bedrooms, garden, transport links, schools, etc.).
• Online portals: Use Rightmove, Zoopla, OnTheMarket, etc., to search for properties.
• Estate agents: Register with local estate agents and let them know your criteria. They often get early access to properties.
• Viewings: View multiple properties, ask questions (e.g., age of boiler, last serviced, neighbour disputes, reasons for selling), and consider taking a friend or family member who has experience for a second opinion if you can.

7. Making an offer & getting it accepted

When you find 'the one,' it's time to act.

• Make your offer: Decide on a realistic offer based on your budget, comparable local sales, and any defects noted during viewing. Make your offer through the estate agent.
• Negotiation: Be prepared to negotiate. Your AIP strengthens your position.
• Offer accepted: Once your offer is accepted, the property is 'Sold Subject to Contract' (SSTC). This isn't legally binding yet, but it starts the conveyancing process.

8. Appoint a conveyancing solicitor

You need a solicitor or licensed conveyancer to handle all the legal aspects of transferring property ownership.

• Action: Choose a solicitor as soon as your offer is accepted. Your mortgage broker or estate agent might recommend one, but you are free to shop around.
• Their Role: They will manage the legal due diligence, including:
  • Searches: Conducting local authority, environmental, water, and drainage searches to uncover any potential issues with the property or surrounding area.
  • Enquiries: Raising questions with the seller's solicitor about the property.
  • Drafting contracts: Preparing and reviewing the legal contracts.
  • Mortgage liaison: Working with your mortgage lender to ensure all legal conditions for your loan are met.
  • Transfer of funds: Managing the secure transfer of funds for the purchase.

9. Property survey & valuation

While your lender arranges a basic valuation, it's highly recommended for every first-time buyer to get an independent survey.

• Lender's Valuation: The bank/lender will arrange a valuation to ensure the property is worth the loan amount. This is for their benefit, not yours.
  • Your survey:
    • Condition Report: Basic overview, suitable for new-builds.
    • Homebuyer Report: More detailed, suitable for standard properties built in the last 100 years, highlighting significant defects.
    • Building Survey: Most comprehensive, recommended for older, larger, or non-standard properties, detailing all defects and potential repair costs.
• Why it matters: A survey can uncover hidden issues (e.g., damp, structural problems, roof issues) that could be expensive to fix, allowing you to renegotiate the price or even pull out of the sale if necessary.

10. Exchange of contracts

This is the point of no return – the sale becomes legally binding.

• Action: Once all searches are back, enquiries are answered, your mortgage offer is firm, and your solicitor is satisfied, you and the seller will sign the contracts. Your solicitor will exchange them with the seller's solicitor, and you'll typically pay your deposit (usually 10% of the purchase price).
• Why it matters: After exchange, neither party can pull out without significant financial penalties. A completion date (the moving date) will be agreed upon.

Phase 4: Final steps & moving in

The finish line is in sight!

11. Buildings insurance

You must have buildings insurance in place from the moment of exchanging contracts.

• Action: Your mortgage lender will make buildings insurance a condition of your loan. Arrange this to start on your exchange date, even if completion is weeks away.
• Why it matters: It protects the physical structure of your home against damage (e.g., fire, flood, storms) and is essential as you are legally responsible for the property from exchange.

12. Completion day

The day you become a homeowner!

• Action: Your solicitor transfers the remaining balance of the purchase price to the seller's solicitor. Once the funds clear, the property officially becomes yours.
• What happens: The estate agent will call you to confirm you can collect the keys! You'll often collect them from the estate agent's office.

13. Post-completion & moving in

• Registering ownership: Your solicitor will register your ownership with the Land Registry and pay any Stamp Duty Land Tax on your behalf.
• Utilities & council tax: Notify the utility companies and local council that you've moved in to set up your accounts for gas, electricity, water, broadband, and council tax.
• Contents insurance: While buildings insurance is often mandatory, contents insurance (covering your belongings) is highly recommended. Consider taking it out to cover your items during the move itself.
• Redirect your post: Set up a postal redirection service to ensure you receive all your mail.
• Settle in: Start making your new house a home!