Why your ‘first home’ isn’t just about the four walls
Buying your first home in the UK is a huge milestone, one you’ll remember for the rest of your life. But let’s be honest, no one tells you about all the little curve-balls ahead and there are usually lots of them! From surprise fees to ‘mortgage in principle’ mumbo jumbo, it can be confusing. The good news is that you’re not alone and plenty of first time buyers are in the same boat – I was! With a bit of preparation, you can steer clear of the worst surprises from the get-go.
Step 1: Check if you really qualify as a first-time buyer
This may sound obvious, but being a ‘first-time buyer’ in official terms means you’ve never owned a residential property in the UK or abroad (even jointly) and you’re buying your main home. This matters as certain schemes and tax-reliefs apply only if you meet that definition. For instance, a reduction in stamp duty fees and if you inherited something or own a share, it may affect eligibility, so it’s best to double-check.
Step 2: Start with your finances (and save a realistic deposit!)
The dream often begins with ‘I’ll buy when I’ve saved £20k’, but reality is more nuanced. Many lenders want at least 5-10% deposit, and the more you can put down, the better your mortgage options (lower rates, fewer fees). But the deposit is just the beginning, you’ll also need to factor in survey fees, solicitor fees, moving costs and possibly stamp duty. Trust me when I say this, whatever your budget is, it will not be the final amount you’ll spend on moving. There are so many hidden losses like when you redirect your mail or the cost of boxes, it all really adds up. I’d strongly suggest setting up a spreadsheet to understand monthly costs too as these can be suprising.
Step 3: Get your mortgage in principle (and pick the right moment)
Before you start viewing every ‘dream flat’, it’s wise to talk to a mortgage adviser and get an Agreement in Principle (AIP). This shows sellers you’re serious and helps you understand your budget. Also ask yourself, is now the right time? House-prices, interest rates, your job security all matter and sometimes waiting a little longer can pay off. We stayed at our flat for 8 years before we decided we could comfortably afford to move.
Step 4: Understand the lifeline of reliefs & schemes
Here’s the good part, being a first-time buyer comes with some perks. For example, in England you may pay zero Stamp Duty on homes up to a certain value, and only a reduced rate for a stretch above that. Also look out for government schemes like the Lifetime ISA bonus (up to 25% added by the government), shared ownership, and high loan-to-value mortgage schemes.
Step 5: The part no one warns you about: the extra costs
Once you’ve offered and accepted, that’s when the hidden stuff kicks in. From conveyancing fees, valuation surveys to moving day costs, these all add up. A guide found that for London flats, costs can easily reach £500-£1,000+ for basic legal or valuation fees, plus add-ons for insurance, post-move utilities and that’s without the deposit. My tip is to budget for at least £2,000–£3,000 extra on top of your deposit unless you’re buying in a low-cost area.
Step 6: Pick the right property (and avoid traps)
You might fall in love with that quirky apartment, but consider, is it leasehold? How many years left on the lease? What are the service charges? Is it in an up-and-coming area or one whose future looks uncertain? I cannot stress the importance of getting this right and understanding what it means. We’ve had serious challenges selling our flat due to the management company and leasehold agreement.
On the flip side, one thing many first-time buyers regret, underestimating renovation costs, overestimating the value-added by DIY. Research the average selling price on the street, check the neighbourhood at different times of day, and ensure your future self will still like the location in 5-10 years. I also ran a crime rate report on our area to check it was all safe.
Step 7: Mortgage Applications, Survey’s and The Legal Bit
If you’ve had an offer accepted, it’s time to celebrate however, please don’t get your hopes up. It can be a tedious time as the seller can pull out at any time, so it’s best to set your expectations from the get-go. We’ve lost 2 houses during the whole move process, and it’s left us quite frankly mentally exhausted.
From this step to the next, then comes the slightly more dull bit. You’ll need to have a survey completed on the property to ensure it’s structurally sound. We used ReallyMoving.com and found it to be helpful in looking for a survey at the right price.
Then comes the mortgage application, which your advisor will submit on your behalf. Just remember to check you can afford the monthly payments and are happy with the term and interest rates.
Lastly, it’s the legal bit which involves reading and signing many documents. Your solicitor will help you with any questions you have. They will also keep you informed throughout the process.
Step 8: Moving in (and beyond…)
Congratulations, you exchanged, you completed, you’ve got the keys. But owning a home isn’t the end of the journey, it’s the beginning. You’ll now deal with maintenance, possibly higher bills (council tax, ground rent, upkeep), and you’ll need a little cash cushion. Homeownership does bring emotional satisfaction, but also ongoing responsibility. If you’re planning on living with a partner, I’d suggest you open a joint account to pay the bills out of. It’s so much easier to manage and was a lifesaver for us!
Take it from someone who has been there…
If I’ve learned one thing in this process, it’s this…while buying your first home is a milestone, it’s not a sprint it’s a journey and you’ll learn so much on the way. Each step matters. Being well-prepared now means you’ll smile more when you open that front door for the first time.
Take your time, budget properly, ask questions – nothing is ever a stupid question when you’re paying £1000’s towards a house!