The Ultimate UK First-Time Buyer Guide (2026)

Everything you need to know about buying your first home in the UK — explained clearly, honestly, and without jargon.

Buying your first home is one of the biggest financial steps you’ll take. It’s exciting, but it can also feel confusing, stressful, and overwhelming — especially if you don’t know where to start. This guide walks you through the entire first-time buyer journey, from checking if you’re ready to buy to getting your keys, with practical tips for 2026.

Who is a First-Time Buyer?

In the UK, you’re classed as a first-time buyer if you have never owned a property anywhere in the world.

Being a first-time buyer matters because you may:

  • Access lower deposit mortgages
  • Qualify for stamp duty relief
  • Be prioritised by some lenders and government schemes


⚠️ Note: If you’ve ever owned property before — even jointly — you won’t qualify as a first-time buyer.

Step 1: Are You Ready to Buy Your First Home?

Before speaking to a lender or making an offer, check whether buying is realistic right now:

  • Do you have a deposit saved (or being gifted)?
  • Is your income stable?
  • Are you comfortable with monthly mortgage payments?
  • Do you have money set aside for legal fees and moving costs?

💡 Tip: A First-Time Buyer Mortgage Adviser can help you answer these questions honestly — without pressure.

Learn more about our First-Time Buyer Mortgages UK service.

Key Takeaways:
✅ Check your finances first
✅ Consider all upfront and ongoing costs
✅ Seek expert advice early

Step 2: How Much Deposit Do First-Time Buyers Need?

Most first-time buyers in the UK need a 5%–10% deposit of the property price.

Example:

  • Property price: £250,000
    • 5% deposit = £12,500
    • 10% deposit = £25,000


Can my deposit be gifted
Yes! Many lenders accept deposits gifted by parents, grandparents, or close family members. The gift usually must be confirmed in writing and cannot be repayable.

💡 Tip: Larger deposits (15–25%+) usually mean better interest rates, more lender choice, and lower monthly repayments.

Key Takeaways:
✅ Save or receive a deposit
✅ Consider family gifts
✅ Bigger deposit = bigger benefits

Step 3: How Much Can a First-Time Buyer Borrow?

Most lenders offer 4–4.5x annual income, depending on affordability.

They assess:

  • Your income (salary + regular bonuses)
  • Your outgoings (loans, credit cards, childcare costs)
  • Your credit history
  • Your deposit size

 

Example:

Joint income: £55,000 → potential borrowing £220,000–£247,500

💡 Tip: Getting advice before house hunting avoids disappointment.

Book a consultation with our First-Time Buyer Mortgages UK service.

Key Takeaways:
✅ Know your borrowing limit
✅ Factor in all outgoings
✅ Seek professional guidance

Step 4: Understanding Credit Scores (and Myths)

You do not need a perfect credit score to get a mortgage. What matters most:

  • No recent missed payments
  • No unpaid defaults
  • Sensible use of credit


💡 Tip: Minor issues, like old late payments, don’t automatically mean rejection. You can check your credit report for free for 7 days using CheckMyFile, which checks both Experian and Equifax, the credit reference agencies most lenders use.

A mortgage broker can match you with lenders who are more flexible. If you are self-employed, see our Self-Employed & Contractor Mortgages UK service.

Key Takeaways:
✅ Check your credit early
✅ Don’t worry about minor past issues
✅ Flexible lenders exist

Step 5: What is an Agreement in Principle (AIP)?

An AIP is a statement from a lender showing how much they may lend you, subject to checks.

Why it matters:

  • Estate agents usually ask for it
  • Shows sellers you’re serious
  • Clarifies what you can afford before making an offer


💡 Tip: AIPs usually last 60–90 days.

Key Takeaways:
✅ Get an AIP before house hunting
✅ Demonstrates seriousness to sellers
✅ Guides your property search

Step 6: Choosing the Right Mortgage Type

There’s no “best” mortgage — only what’s right for you.

Common options:

  • Fixed-rate mortgages – payments stay the same for a set period (2 or 5 years typical)
  • Variable-rate mortgages – payments can go up or down


Your mortgage adviser will explain:

  • Monthly payments
  • Fees
  • What happens when the fixed rate ends

💡 Tip: Explore our First-Time Buyer Mortgages UK service to see the best options for you.

Key Takeaways:
✅ Fixed vs variable – know the difference
✅ Understand fees and terms
✅ Seek expert advice

Step 7: Making an Offer on a Property

Once you’ve found a home:

  1. Make an offer via the estate agent
  2. Provide your AIP
  3. Agree a price (subject to survey and mortgage)


Nothing is legally binding at this stage.

💡 Tip: Don’t rush — always confirm affordability before committing.

Key Takeaways:
✅ Use your AIP
✅ Confirm your budget
✅ Proceed carefully

Step 8: Applying for Your Mortgage

Your adviser will:

  • Submit your application
  • Handle lender queries
  • Liaise with solicitors and estate agents
  • Keep the process moving


💡 Tip: A mortgage offer typically takes 2–6 weeks, depending on lender checks.

Key Takeaways:
✅ Let your broker handle paperwork
✅ Track your application closely
✅ Understand timelines

Step 9: Surveys, Solicitors & Legal Work

You will need:

  • A solicitor or conveyancer
  • A property survey (recommended, even for new builds)

Your solicitor handles:

  • Searches
  • Contracts
  • Exchange of contracts
  • Completion

💡 Tip: Always schedule surveys early to avoid delays.

Key Takeaways:
✅ Choose a trusted solicitor
✅ Conduct surveys
✅ Stay proactive

Step 10: Exchange & Completion

Exchange of contracts:

  • Pay your deposit
  • Sale becomes legally binding

Completion:

  • Mortgage funds released
  • Receive the keys
  • You officially own your first home 🎉

💡 Tip: Celebrate — you’ve completed your first purchase!

Key Takeaways:
✅ Deposit paid = legally secure
✅ Completion = keys in hand
✅ Plan for moving day

Costs First-Time Buyers Should Budget For

Aside from your deposit:

  • Solicitor/conveyancing fees
  • Survey fees
  • Mortgage broker fee (£399 payable on offer)
  • Moving costs
  • Furniture/appliances


💡 Tip: First-time buyers in England often benefit from stamp duty relief.

Key Takeaways:
✅ Factor in all costs
✅ Budget for extras
✅ Don’t underestimate moving expenses

Common First-Time Buyer Mistakes

❌ Applying to the wrong lender
❌ House hunting before knowing affordability
❌ Assuming rejection is permanent
❌ Not budgeting for extra costs

💡 Tip: A good mortgage adviser helps you avoid all of these.

Book a consultation today.

Should You Use a Mortgage Broker?

Yes!

  • Accesses more lenders
  • Reduces rejection risk
  • Explains everything clearly
  • Manages the process


Especially valuable if you’re unsure, nervous, or time-poor.

First-Time Buyer FAQs (2026)

Q: Can I get a mortgage if my credit isn’t perfect?
A: Yes — minor issues don’t automatically mean rejection. Check your credit report first: CheckMyFile. Specialist lenders can help.

Q: How long does a mortgage offer take?
A: Typically 2–6 weeks, depending on lender checks and documents.

Q: Do I need insurance for my mortgage?
A: Not legally, but protection like Income Protection Insurance UK or Critical Illness Cover UK helps secure your family and mortgage.

Q: Can I use a gifted deposit?
A: Yes, from family members, as long as it’s confirmed in writing.

Q: What is an Agreement in Principle?
A: A lender’s statement of how much they may lend you, usually valid for 60–90 days.
See our First-Time Buyer Mortgages UK service for guidance.

Speak to a First-Time Buyer Mortgage Adviser

Buying your first home doesn’t have to be stressful. At Middleton Finance, we specialise in helping first-time buyers secure the right mortgage with calm, clear advice and full support from start to finish.

👉 Book your first-time buyer consultation
📞 Or speak directly with a mortgage adviser today on 07775 874126