First-Time Buyer Guide: Everything You Need to Know
Buying your first home is an exciting milestone — but it’s also one of the biggest financial and emotional commitments you’ll ever make. The process can feel overwhelming, especially with so many unfamiliar terms and steps involved. That’s where we come in.
As estate agents, it’s our job to guide you through every stage of the journey — from the first viewing to getting the keys in your hand.
Who is considered a First-Time Buyer?
You’re generally classed as a first-time buyer if:
- You’re buying your first home, and
- You’ve never owned a residential property in the UK or any other country.
Even though it’s called a “first-time buyer,” it really means first-time homeowner.
Important note:
If you’ve inherited or been gifted a property in the past — even if you didn’t buy it — you may not qualify as a first-time buyer. This could affect your eligibility for:
- Government schemes (like First Homes or Lifetime ISAs)
- Stamp duty relief
- Special mortgage products designed for first-time buyers
Some lenders may still consider you for their first-time buyer mortgages if it’s been several years since you last owned a home. However, you’re unlikely to qualify for government assistance.
Always double-check with individual lenders and scheme providers to confirm your eligibility.
What is a mortgage?
A mortgage is a type of loan used to buy a home or land. There are two main types of mortgages: repayment and interest-only. Whichever option you choose, you’ll be required to make monthly repayments:
Repayment Mortgage
You make monthly payments that cover both the loan amount (capital) and the interest. By the end of the mortgage term, your loan is fully paid off — and you’ll own your home outright.
Interest-Only Mortgage
Your monthly payments only cover the interest, not the loan itself. The original loan amount must be repaid in full at the end of the term, usually as a lump sum — so you’ll need a separate plan to repay the capital.
Your home is used as security for the mortgage. If you fall behind on payments, the lender has the legal right to repossess the property — although this is typically a last resort after other options have been considered.
How do interest rates work?
The interest rate on your mortgage is what your lender charges you for borrowing money, and it’s added to the amount you owe.
You can usually choose between two main types of interest rate:
Fixed Rate
With a fixed-rate mortgage, your interest rate (and monthly payments) stay the same for a set period, usually 2, 3, or 5 years.
- This gives you peace of mind, knowing exactly what you’ll pay each month.
- However, you won’t benefit from any drop in interest rates during this time.
Variable or Tracker Rate
With a variable or tracker mortgage, your interest rate can change month to month, usually based on the Bank of England base rate.
- Your repayments could go down if interest rates fall.
- But they could also increase if rates rise — making it harder to budget.
Choosing the right mortgage type depends on your personal circumstances, risk tolerance, and future plans. A good mortgage advisor can help you compare options and decide what’s best for you.
What is LTV (Loan to Value)?
Throughout your homeownership journey, you may come across the term “Loan to Value” or LTV.
Put simply, this refers to the amount you borrow compared to the total value of the property. It’s shown as a percentage and helps lenders assess how much risk they’re taking.
For example if you are buying a property worth £250,000 and you have a £50,000 deposit, you’ll need to borrow £200,000.
That means your LTV is 80% (because you’re borrowing 80% of the property’s value).
The lower your LTV, the better your interest rate is likely to be. This is because the lender is taking on less risk with a smaller loan.
- Buyers with larger deposits (and therefore lower LTVs) are rewarded with cheaper mortgage deals.
- The most competitive interest rates are typically available with a 40% deposit, which equals a 60% LTV.
Understanding your LTV can help you plan your deposit more strategically and potentially save thousands over the life of your mortgage.
Use our handy LTV calculator below!
Top Tips
- Don’t just save for a deposit
A common mistake many first-time buyers make is focusing solely on saving for the deposit (typically 5–20% of the property price), while overlooking the additional costs involved in buying a home.
To avoid being caught out, make sure your budget includes:
- Solicitor/conveyancing fees
- Mortgage arrangement fees
- Surveys
- Stamp Duty (if applicable)
- Removal costs
- Furniture and appliances
- Repairs or decorating
Factoring in these expenses early on can help you stay in control of your finances and avoid any surprises during the buying process.
- Get your Mortgage In Principle (MIP / AIP) ready
It’s easy to get carried away with property viewings before putting yourself in a proceedable position — but doing so can lead to disappointment.
Securing a Mortgage in Principle (MIP) early in the process shows estate agents and sellers that you’re a serious, financially viable buyer who is ready to move forward. In competitive markets, this can give you a real advantage when making an offer.
- Don’t Skip A Survey
As part of your mortgage application, your lender will carry out a mortgage valuation. This is purely for the lender’s benefit and is used to confirm that the property is worth the amount you’re borrowing.
It’s important to note that this valuation is not a detailed survey of the property’s condition. In many cases, it may be done remotely and might not involve a physical inspection of the property at all.
If you’re buying an older home, or simply want peace of mind, it’s wise to invest in a more detailed survey such as:
- Level 2 (HomeBuyer Report) – highlights issues like damp, mould, or basic structural problems.
- Level 3 (Building Survey) – a comprehensive inspection, ideal for older or unusual properties, identifying structural defects like subsidence or roof damage.
While these surveys are optional, they can potentially save you thousands of pounds in unexpected repairs later on.
- Choose your solicitor wisely
Your solicitor or conveyancer will handle all the legal aspects of your property purchase, so it’s important to choose someone who is experienced, efficient, and communicative.
Don’t feel pressured to go with the solicitor recommended by your estate agent or mortgage broker, always do your own research to find the right fit for you.
Look for a solicitor who offers:
- Positive reviews or personal recommendations
- Experience working with first-time buyers
- Transparent pricing with no hidden fees
- A clear point of contact who will keep you updated throughout the process
- A local office, if you’d prefer to meet face-to-face
A good solicitor can help you avoid unnecessary delays and make the legal process far less stressful so it is well worth taking the time to choose carefully.
- Be aware that the process takes time
It’s important to manage your expectations when it comes to the timeframes involved in buying a home. While the average transaction takes around 12 weeks, it’s not uncommon for the process to take longer — even when the sale seems straightforward on the surface.
To help things move as smoothly as possible:
- Have all key documents ready from the outset (e.g. ID, proof of address, proof of deposit)
- Stay in regular contact with your solicitor, estate agent, and mortgage advisor
- Don’t be afraid to chase for updates if things go quiet — a quick call or email can often help move things along
Being organised and proactive can make a real difference to your experience — and help avoid unnecessary delays.
- Ask Questions
No question is too silly — especially when you’re a first-time buyer. This is likely the biggest purchase you’ll ever make, so it’s essential to fully understand every part of the process.
Don’t hesitate to ask about things like:
- Leasehold vs freehold and what that means for you
- Service charges or ground rent (particularly with flats)
- Property boundaries, where they start and end
- Which fixtures and fittings are included in the sale
A good estate agent will always take the time to gather the right information and explain everything clearly, so you can make confident, informed decisions
