This guide explains the main stages of buying your first home, from budgeting and mortgages to the legal process and completion, and sets out the costs and Stamp Duty Land Tax rules that apply to first-time buyers.
Step 1: Understanding Your Budget & Mortgage Options
Before starting your property search, assess how much you can afford. This includes:
- Deposit: Typically 5-10% of the property's value.
- Mortgage: Most first-time buyers need a mortgage to fund their purchase.
- Additional Costs: Legal fees, Stamp Duty (if applicable), and surveys.
Use our conveyancing fees calculator to see your legal fees and Stamp Duty in one quote.
Step 2: Schemes for first-time buyers
- Shared Ownership: you buy a share of the property and pay rent on the remainder.
- Lifetime ISA: a savings account that attracts a 25% government bonus when used towards a first home costing up to £450,000.
The rules for each scheme change from time to time. Check the current conditions on GOV.UK and with your mortgage adviser before you make an offer.
Step 3: Making an Offer & Legal Process
Once you find the right property, you'll need to:
- Make an offer via the estate agent.
- Instruct a conveyancing solicitor to handle the legal work.
- Arrange a property survey to check for structural issues.
Your solicitor will ensure the legal paperwork is in order before exchanging contracts.
Step 4: Stamp Duty Land Tax and legal fees
First-time buyers may qualify for relief from Stamp Duty Land Tax:
- No tax on the first £300,000 of the price.
- 5% on the portion between £300,001 and £500,000.
- No relief if the price is over £500,000; the standard rates then apply to the whole purchase.
Other costs include:
- Our legal fee: from £900 + VAT for a freehold purchase, plus £250 + VAT for a leasehold or new build property
- Search fees: £182.86 on a typical purchase
- Land Registry fee: set by HM Land Registry on a scale based on the price
Use our Conveyancing Fees Calculator for a quote.
Step 5: Exchange and completion
Once contracts are exchanged, the purchase becomes legally binding. On completion day:
- The purchase money, including your mortgage funds, is sent to the seller's solicitor.
- The keys are released to you.
- We submit the Stamp Duty Land Tax return and register you as owner at HM Land Registry.
Common First-Time Buyer Mistakes & How to Avoid Them
Many first-time buyers face challenges. Avoid these common mistakes:
- Not budgeting for extra costs: Surveys, legal fees, and moving expenses add up.
- Ignoring mortgage affordability: Lenders assess your income and outgoings before approval.
- Skipping property surveys: Hidden issues can lead to costly repairs.
Consulting with a mortgage broker and solicitor early can help prevent these issues.
Buying your first home
We act for many first-time buyers and explain each stage in plain terms. For a quote or to discuss your purchase, please call our Hull office on 01482 228808 or contact our Bridlington or Hornsea office.