The Ultimate Step-by-Step Guide for First-Time Buyers

Brooke Williams -

Buying your first home is one of life’s biggest milestones. It’s thrilling, nerve-wracking and sometimes a little confusing. From saving for a deposit to securing a mortgage and collecting the keys, there’s a lot to take in.

At Planna, we work with property lenders, insurers, and valuers across the UK - helping make smarter, faster property decisions. In this guide, we’ll walk you through everything you need to know about buying your first home in the UK, including insider tips, useful links, and how technology like Planna’s is transforming the process for everyone involved.

Step 1: Set Your Budget and Understand What You Can Afford

Before you start scrolling through listings, take a step back.
What’s driving your decision to buy? Maybe you’re tired of renting, want to build equity, or are ready to settle down. Whatever your reason, understanding your motivation will help shape your financial plan.

How much can you afford?

Use MoneyHelper’s mortgage calculator to estimate how much you could borrow and what your monthly repayments might be. Don’t forget the extras, like solicitor fees, surveys, insurance, stamp duty and moving costs can add up fast.

A good rule of thumb is to keep your housing costs (including your mortgage) below about 30–35% of your take-home income. This ensures you have breathing space for the unexpected a vital mindset for any first-time buyer.

Step 2: Start Saving for Your Deposit and Build a Strong Credit Score

Most first-time buyers in the UK will need a deposit of at least 5–10% of the property’s price. The bigger your deposit, the better the mortgage deals you’ll qualify for.

For example, if you’re eyeing a £250,000 home, a 10% deposit means saving £25,000. It’s no small feat, but saving smartly through automatic transfers or a dedicated home savings account helps make it achievable.

If you’re between 18 and 39, the Lifetime ISA (LISA) is a game-changer. You can save up to £4,000 each year, and the government will add a 25% bonus.

Lenders will closely review your credit report to decide how much to lend you (and at what rate).
Simple steps like paying bills on time, keeping your credit utilisation low, and avoiding new debts can potentially boost your rating quickly.

Step 3: Explore UK First-Time Buyer Schemes

If you’re struggling to save or want to stretch your budget, the UK government offers several first-time buyer schemes to help.

  • First Homes Scheme – offers new-build properties at 30–50% below market value for eligible first-time buyers.
  • Shared Ownership – lets you buy a share of a home (usually 25–75%) and pay rent on the rest.
  • Regional options, such as Help to Buy Wales or LIFT in Scotland, cater to local buyers.
  • Lifetime ISA – as above, great for deposit savings.

Each scheme has its own criteria, so double-check eligibility on MoneyHelper’s guide.

Step 4: Get a Mortgage in Principle

Before house-hunting, get a Mortgage in Principle (MIP) sometimes called an Agreement in Principle. It’s a statement from a lender confirming how much they’re willing to lend in theory.

Having this document ready makes you a more attractive buyer to estate agents and sellers see you as serious and prepared. You can get one online or through a mortgage broker, who can also compare deals and explain your options.

For a breakdown of mortgage types (fixed, tracker, variable) see Which?’s mortgage guide.

Step 5: Start House-Hunting (and Stay Objective)

Here’s where the excitement kicks in. Browse property portals like Rightmove, Zoopla, and OnTheMarket, but don’t get swept away by photos alone.

Research neighbourhoods carefully:

  • Are there good transport links?
  • What are local schools and amenities like?
  • Is the area growing or declining in demand?

When you view properties, visit at different times of day and always check the Energy Performance Certificate (EPC) rating. For flats, read the lease details - short leases can cause major resale and mortgage issues. MoneyHelper’s first-time buyer guide explains what to look out for.

Step 6: Make an Offer and Negotiate Confidently

Once you’ve found the one, it’s time to make your move. Check local sold prices using HM Land Registry to make a realistic offer.

Don’t be afraid to start slightly below asking price if the property has been on the market for a while. Be clear, polite, and confident and always ask the estate agent to remove the listing from the market once your offer is accepted to avoid being gazumped.

⚖Step 7: Hire a Conveyancer or Solicitor

After your offer is accepted, you’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase.

They’ll check ownership, perform searches for planning issues or disputes, and guide you through the contracts. The process can take several weeks, so stay in close contact and respond quickly to any paperwork requests.

For an easy overview of the process, Citizens Advice offers an excellent guide.

Step 8: Get a Property Survey and Valuation

Even if your lender conducts a valuation, you should always arrange your own property survey to uncover any hidden issues.

  • Condition Report – ideal for new builds or modern homes.
  • Homebuyer Report – the most common option for typical properties.
  • Full Structural Survey – for older or unusual properties.

If the survey reveals major problems (like damp, structural movement, or roof issues), you can renegotiate or request repairs before completion.

Step 9: Receive Your Formal Mortgage Offer

Once your survey is complete and legal checks are underway, you’ll receive a formal mortgage offer.

Check every detail such as rate type, early repayment charges, and term length before signing. You’ll also need to arrange buildings insurance, which your lender usually requires before releasing funds.

At this point, your solicitor will exchange contracts with the seller, setting a completion date - the day the property officially becomes yours.

Step 10: Completion Day

Completion day is where it all comes together. Your solicitor transfers the funds, the property is legally yours, and you get the keys.

It’s a moment worth celebrating - the end of one journey and the start of another. Don’t forget to take meter readings, set up your utilities, and register your new address for council tax, GP and insurance.

Step 11: Key Takeaways for First-Time Buyers

Buying your first home can feel overwhelming, but it doesn’t have to be. Stay informed, patient, and proactive.

  • Budget wisely - don’t stretch too far.
  • Use tools like LISAs and government schemes.
  • Get professional advice from brokers and solicitors.
  • Always read contracts and mortgage terms carefully.
  • Keep an emergency fund for repairs or rate rises.

Above all, remember: every homeowner starts somewhere. The key is to take that first step with confidence and knowledge on your side.