First-Time Buyer Guide: Everything You Need to Know

Buying your first home is one of the most significant financial decisions you’ll make, and the process has more moving parts than most people expect. From saving a deposit and getting a mortgage in principle, to instructing a solicitor and exchanging contracts, there’s a lot to navigate before you get the keys. This guide covers the whole journey in the order it actually happens, so you know what to expect at each stage and what to do to keep things moving.

Work Out What You Can Actually Afford

Before you look at a single property, get a clear picture of your finances. That means knowing your deposit, your borrowing capacity, and the full costs of buying.

Deposit. Most lenders require a minimum of 5% of the purchase price, though 10% or more will give you access to better mortgage rates and a wider range of products. The bigger the deposit, the lower the loan-to-value ratio, and lenders price their rates accordingly.

Mortgage borrowing. Most lenders will offer between four and four-and-a-half times your annual household income, though this varies by lender and your individual circumstances. Use a mortgage calculator as a starting point, but speak to a broker early — they’ll tell you exactly where you stand before you start viewing.

The costs beyond the deposit. A lot of first-time buyers focus on the deposit and underestimate everything else. Budget for:

• Stamp Duty Land Tax (see below)
• Solicitor/conveyancing fees: typically £1,500–£3,000
• Mortgage arrangement fee: often £999–£2,000, sometimes added to the loan
• Survey costs: £400–£1,500 depending on the type
• Removal costs
• Buildings insurance from exchange of contracts

Stamp Duty: What First-Time Buyers Pay in 2026

Stamp Duty Land Tax changed in April 2025. The temporary relief that had been in place since September 2022 ended, and the thresholds reverted. For first-time buyers in England, Stamp Duty Land Tax relief still applies, but on revised terms:

• No SDLT on the first £300,000 of the purchase price (down from £425,000)
• 5% on the portion between £300,001 and £500,000
• Above £500,000, the standard SDLT rates apply and first-time buyer relief does not apply at all

In South London, where asking prices regularly exceed £500,000, this is worth calculating carefully before you make an offer. A property at £550,000 will attract full standard SDLT rates, not first-time buyer relief, so factor that into your budget from the start.

Government Schemes Available to First-Time Buyers

Lifetime ISA

If you’re between 18 and 39, the Lifetime ISA (LISA) is worth using. You can save up to £4,000 per year and the government adds a 25% bonus on top, up to £1,000 per year. The funds can be used towards a first home worth up to £450,000. The key catch: if you withdraw the money for any other purpose before age 60, you’ll pay a 25% penalty that effectively takes back the bonus and a portion of your own savings (gov.uk, 2026).

First Homes Scheme

The First Homes Scheme offers new-build properties to first-time buyers at a minimum 30% discount from full market value. The discount is locked into the title of the property, so when you come to sell, the next buyer also gets the discounted price. Eligibility criteria apply, including local connection requirements in some areas (gov.uk, 2026).

Your First Home (Announced September 2026)

In September 2026, the government announced a new equity loan scheme called “Your First Home,” intended to support purchases with deposits as low as 2.5%, backed by a 20% government equity loan on new-build properties. The scheme was subject to confirmation at the October 2026 Budget, so check gov.uk for the latest position before relying on it in your planning.

Getting a Mortgage

Mortgage in Principle

Get a mortgage in principle (MIP) before you start viewing seriously. It’s not a formal offer, but it tells you what a lender is likely to lend you based on a soft credit check, and it shows sellers and agents you’re a credible buyer. Most estate agents will ask whether you have one.

Choosing Between a Broker and Going Direct

A mortgage broker searches across multiple lenders and can access deals not available directly to the public. For first-time buyers, a broker is usually worth the fee, particularly if your situation is in any way non-standard: variable income, a recent change of employment, or a smaller deposit.

Fixed vs Tracker

Most first-time buyers opt for a fixed-rate mortgage for the certainty it provides. Two- and five-year fixes are the most common. A tracker mortgage follows the Bank of England base rate, which can work in your favour if rates fall but adds uncertainty to your monthly outgoings. MoneyHelper has a clear, impartial explanation of the different mortgage types if you want to compare them in more detail.

Finding a Property and Making an Offer

Once you have a mortgage in principle, you’re ready to view and offer. A few practical points:

• View properties more than once where possible, and at different times of day
• Ask how long the property has been on the market and whether there have been any previous offers
• Check the lease length if buying a flat (anything under 80 years needs attention)
• Your offer doesn’t need to be at the asking price — it should reflect what the property is worth to you and what the market will support

In South London, well-priced properties in sought-after pockets still attract multiple viewings quickly, particularly at the lower end of the market where first-time buyer demand is concentrated. Moving fast matters, but so does moving with clear numbers.

Instructing a Solicitor

Once your offer is accepted, you’ll need a solicitor or licensed conveyancer to handle the legal side of the purchase. Instruct one as soon as your offer is accepted — don’t wait for the mortgage offer to arrive.

Your solicitor will:

1. Carry out searches (local authority, water, environmental, drainage)
2. Raise enquiries with the seller’s solicitor
3. Review the title and any lease documents
4. Report to you on the mortgage offer conditions
5. Prepare for exchange and completion

The conveyancing process typically takes between 12 and 16 weeks, though leasehold purchases, chains, and complex title issues can add time. Keep in regular contact with your solicitor and respond to requests for information quickly — delays on the buyer’s side are one of the most common reasons completions slip.

Survey: Don’t Skip It

Your mortgage lender will carry out a valuation, but that’s for their benefit, not yours. It confirms the property is worth what you’re paying; it doesn’t tell you what condition it’s in.

A separate survey is worth commissioning. The main options are:

• RICS Home Survey Level 2 (HomeBuyer Report): suitable for conventional properties in reasonable condition
• RICS Home Survey Level 3 (Building Survey): more detailed, recommended for older properties, those with visible defects, or anything non-standard in construction

A survey that flags a significant issue gives you the option to renegotiate, ask the seller to remedy the problem before completion, or withdraw before you’re legally committed. RICS sets the standards for property surveys in the UK and its website explains what each level covers.

Exchange and Completion

Exchange of contracts is the point at which the sale becomes legally binding. Before exchange, either party can walk away without penalty. After exchange, you cannot.

At exchange you’ll pay your deposit (typically 10%, though this can be negotiated) and agree a completion date. Buildings insurance must be in place from exchange.

Completion is the day the remaining funds transfer and you get the keys. Your solicitor will handle the transfer of funds and register the property in your name at HM Land Registry.

A Note on Leasehold

A significant proportion of flats in South London are sold leasehold. Before buying a leasehold property, make sure you understand:

• The length of the lease remaining (below 80 years can affect mortgage eligibility and future saleability)
• The annual service charge and ground rent
• Whether there are any major works planned or a sinking fund in place
• The terms of the lease, particularly any restrictions on subletting or alterations

Leasehold reform has been an active area of legislation. The Leasehold and Freehold Reform Act 2024 made changes to lease extension rights and ground rent rules, and further reforms are in progress (gov.uk, 2024). Your solicitor should flag anything material, but it’s worth being aware of the basics before you make an offer on a leasehold property.

If you’re at the start of your search in South London, the Goldwyn Knight team can help you understand what’s available at your budget and what to expect from the process. Contact us to register as a buyer and we’ll make sure you hear about suitable properties as they come to market.

Frequently Asked Questions