Buying your first home, step by step

This is the whole process in England, from "can I actually afford this?" to keys in hand. It's written for first-time buyers and new investors buying a whole property in their own name, and it assumes you're smart but have never done this before. Scotland works differently. There's a callout below.

Step 1: Work out what you can afford

Before you look at a single listing, do the maths. Lenders typically stress-test your income and outgoings, and most will lend somewhere around 4 to 4.5 times your income, but that varies with your circumstances, so treat any online calculator as a rough guide only.

You'll need a deposit. 5% of the purchase price is usually the minimum a lender will accept; 10% or more gets you better rates and more choice (see the deposit guide). On a £250,000 home, that's £12,500 to £25,000, before any of the other costs below.

Don't pick a mortgage yourself off a comparison site and call it done. Speak to an FCA-authorised broker. They see the whole market and they're regulated to advise you. We're not going to name lenders or products here, ever.

Step 2: Get a decision in principle

A decision in principle (also called an agreement or mortgage in principle) is a lender saying "based on what you've told us, we'd probably lend you £X." It's not a guarantee. It's usually a soft credit check (a few lenders run a hard one, so ask first), and it's typically valid for 30 to 90 days depending on the lender.

Why bother? Because estate agents take you seriously with one. Some won't book viewings or pass on offers without it. Get it before you start viewing, not after you've fallen for a house.

Step 3: View properties properly

View more than once, at different times of day. Check the boring stuff: damp smells, cracks, the boiler's age, water pressure, phone signal, what parking is actually like at 6pm. Ask why the seller is moving and how long it's been listed. Both affect your negotiating position.

If it's a flat, ask about the lease length, ground rent and service charge on day one. Short leases and fat service charges kill deals late and expensively.

Step 4: Make an offer, and understand it means almost nothing yet

Here's the bit that surprises everyone. In England, an accepted offer is not legally binding. Not for you, not for the seller. Everything is "subject to contract" until you exchange contracts, which is typically months away.

That cuts both ways:

• You can walk away at any point before exchange: if the survey's bad, if your circumstances change, whatever.
• The seller can accept a higher offer from someone else at any point before exchange, even after months of you paying for surveys and solicitors. That's gazumping. It's legal, it happens, and there's no compensation. Your best defences: move fast, ask the agent to take the listing off the market as a condition of your offer, and keep your solicitor pushing.

Offer below asking if the evidence supports it (time on market, comparable sales, survey findings). The worst they can say is no.

Step 5: Full mortgage application

Once your offer's accepted, your broker submits the full application. The lender verifies income, runs a hard credit check, and orders a valuation: a check that the property is worth what they're lending against. gov.uk puts the whole mortgage stage, from researching options through to making the application, at roughly 18 to 40 days. A valuation is for the lender's benefit, not yours. It is not a survey.

Step 6: Conveyancing

You appoint a solicitor or licensed conveyancer. They handle the legal transfer: searches (planning, roads, drainage, contamination, a standard pack runs £250 to £450), raising enquiries with the seller's solicitor, checking the title, and reviewing the lease if it's leasehold. Instruct them and order searches immediately. This is the stage where most deals go slow (see the conveyancing guide for the full step-by-step). gov.uk puts the searches-and-survey stage at roughly 28 to 45 days, but chains and leaseholds routinely take longer.

Step 7: Get a survey, an actual one

The lender's valuation tells you nothing useful. Pay for your own RICS Home Survey (see the survey guide):

• Level 2: conventional homes in reasonable nick. The cheaper option: MoneyHelper puts homebuyer surveys at roughly £400 to £1,500 all in, with Level 2 towards the lower end, varying with property value and location.
• Level 3 (full building survey): older, bigger, odd or knackered properties. The top of that range: RICS says fees start at a few hundred pounds, with some bespoke services costing over £1,000.

If the survey finds problems, renegotiate. You're not bound yet. That's the whole point of "subject to contract."

Step 8: Exchange of contracts

Both sides sign identical contracts, solicitors exchange them, and now it's legally binding. You pay a deposit at exchange, conventionally 10% of the purchase price. If you pull out after exchange, you can lose that deposit and be sued for the seller's losses. If you're buying with a 5% mortgage deposit, your solicitor can usually negotiate a 5% exchange deposit, so flag it early.

Buildings insurance needs to start from exchange, not completion. You're on the hook for the property from this moment.

Step 9: Completion

Usually a week or two after exchange, sometimes longer by agreement (same-day is possible but stressful). Your solicitor sends the money, the seller's solicitor confirms receipt, and you collect the keys, often around lunchtime. Your solicitor then pays your stamp duty and registers you at HM Land Registry. Done.

How long does all this take?

Plan for 12 to 20 weeks from accepted offer to completion. gov.uk puts the average whole journey, from search to keys, at around five months. Chains, leaseholds and slow searches push it longer. No chain and a sharp solicitor can beat it.

What it costs: the full list

Worked example: £250,000 first home

• Deposit (10%): £25,000
• SDLT: £0, under the £300,000 first-time buyer threshold
• Solicitor incl. searches: £1,500
• Level 2 survey: £500
• Valuation fee: £300
• Removals: £600
• Total cash needed: £27,900

Same house at £350,000? SDLT becomes (£350,000 − £300,000) × 5% = £2,500, and the 10% deposit jumps to £35,000. Total cash: just over £40,000. The deposit dwarfs everything else, so budget around it.

Buying in Scotland? Different rules

In Scotland you offer through a solicitor, usually against a Home Report the seller provides, and the deal becomes binding much earlier, when solicitors conclude missives (the contract letters). Gazumping is far rarer as a result. The tax is LBTT, not SDLT, with different bands. This guide covers England; don't apply it north of the border.

Mistakes people make

• Viewing before getting a decision in principle. You'll lose the house to a prepared buyer.
• Skipping the survey to save £500. A missed roof problem costs 20 times that.
• Believing an accepted offer is a done deal. Until exchange, you can be gazumped. Keep everyone moving.
• Forgetting the cash costs beyond the deposit. Budget £3,000 to £5,000 on top, minimum.
• Not telling your solicitor about the 5% exchange deposit early. Last-minute deposit gaps delay exchanges.
• Changing jobs or taking on credit mid-application. Lenders re-check. Don't give them a reason to pull the offer.
• Letting the chain drift. Ring your solicitor and the agent weekly. Silence is where sales die.

Sources: gov.uk: SDLT residential property rates · gov.uk: How to buy a home · gov.uk: Buying a home · RICS: house surveys guide · MoneyHelper: buying and moving costs · MoneyHelper: buying property in Scotland

Education, not financial advice. For mortgage advice, speak to an FCA-authorised broker.

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