How to buy your first home

Typically you need at least 5-10% of the property value for a deposit. The other 90-95% is “borrowed” from a mortgage lender.

Remember the bigger your deposit, the smaller your mortgage and the less interest you'll pay in the long term (or the lower your monthly payments). A larger deposit could also help you get a better mortgage deal.

As well as your monthly mortgage payments, there are other costs you'll need to cover when buying your first home, such as Stamp Duty and insurance. 

Our ‘home buying costs’ checklist is a starting point to see what else you might need to pay for, and you can use our budget calculator to see how this could impact your day to day finances.

Building a mortgage deposit might feel daunting. So, here are some useful saving tips for first time home buyers.

• Set a savings goal – work out how much deposit you'll need, and how long you may have to save for. Learn more with our guide on how to start saving for a house.
• Get help from elsewhere – could you borrow some money from your parents? Or move back home to save on rent? If that's not ideal you could consider buying a property with a friend or family member. 
• Cut back where you can – are there any little luxuries you could cut back on to reach your goal quicker? Remember to cancel unused gym memberships and consider cutting out the mid-week takeaway.
• Crunch some numbers – saving £50 per week adds up to over £5,000 in two years’ time, which could be the difference between being able to afford a £450,000 home and a £500,000 home.
• Create a budget and stick to it – take a closer look at your spending with our budget calculator.

Credit scores are another key thing to include on your buying a first home checklist. Here are a few tips to bear in mind.

• Find out your credit score – a credit score gives you an indication of your credit health. Most lenders use this score as one of the factors to decide whether to offer you products such as credit cards, loans and mortgages. You can easily check your credit score for free in our mobile app (app criteria apply). It will be updated every 30 days. Your credit score in our app is provided by TransUnion, one of the UK's leading credit reference agencies.
• Get on the electoral roll – if your name isn't on there, you’ll find it harder to get credit. Go to The Electoral Commission to find out how to register.
• Review your credit file – this is all the data that underpins your credit score. If you think information on your file is wrong, ask your bank to correct it or challenge it with the credit reference agency. Errors on your credit file can lead to your application being rejected. You can find out more about improving your credit file on the MoneyHelper website.
• Get your documents ready ahead of time – when you apply for a mortgage, lenders will look at your income and outgoings. To prove your income you’ll usually need to show pay slips and bank statements from the last 3 months. If you’re self-employed, you'll need copies of your tax returns and business accounts, all prepared by an accountant. Having these ready ahead of time could save you a lot of time and stress down the line.
• Make regular card payments – make sure you avoid missing card payments or paying late by setting up Direct Debits. Too much credit could have a negative effect so make sure you cancel any unused cards.

Are you a first time buyer struggling to get on the property ladder? Speak to a mortgage adviser to understand what you are eligible for and what best suits your needs.

Explore home ownership schemes

When buying your first home, there are two main ways to see how much we could lend you. The simple indication is our mortgage calculator. It can give you an idea of how much you could borrow and how much it may cost per month. It takes less than 5 minutes.

As to a more personalised indication, as long as you have a specific property or purchase price in mind, we can give you an Agreement in Principle to indicate how much we could lend you. It's more accurate and takes less than 10 minutes.

We use a soft credit check to calculate an Agreement in Principle, meaning it will not have any impact on your credit score.

Is off-street parking more important than a large garden? Is proximity to a city centre key? Make a list of the top features your dream home should have.

• When you know what you want, register with estate agents and start looking on websites like Zoopla.
• Sign up for email alerts so you’ll know as soon as a property that meets your criteria is listed online.
• Contact your estate agent to schedule a viewing when you find something you like.

• When you’ve found the right place, make an offer through an estate agent. Remember the sale price is what the seller hopes to get, but you may be able to agree a lower price.
• So that you’re confident in your discussions, you can use our Agreement in Principle tool to find out how much we could lend you without affecting your credit score or credit file.

• First time buyer mortgages – it can be daunting when you are looking to buy your first home but we are here to help. Could you save with a Green Mortgage? How can you manage your mortgage online? 
• Joint mortgages – you may be thinking about buying a home with a partner, friend or family member. Find out what you need to know about buying together.

See how much we could lend you with an Agreement in Principle. It won't affect your credit score as we use a soft credit check. It can take less than 5 minutes and there is no commitment. 

• Once you have your Agreement in Principle in place, you can speak to one of our qualified mortgage advisers via phone or video with screen sharing capability.
• Alternatively, if you get an Agreement in Principle, you can select the mortgage you wish to apply for and continue your application online.

• Now's the time to apply for your mortgage. Speak to your lender to see what documents and information they need from you, or go online if you're looking to apply without advice. They'll arrange a valuation to see what the property is worth. You can also get a more detailed survey. Read about different types of surveys in our guide.
• You'll also need to find a solicitor or conveyancer to take care of the legal transfer of the property.

• In England and Wales, when you exchange contracts, you'll sign a contract that legally commits you to buying the property. You'll need to pay your deposit, the signed contract will be exchanged with the seller's solicitor or conveyancer, and the two sides will agree a date to complete the sale.
• In Scotland you will be legally committed to buying the property when missives have been concluded. 

You'll need to have buildings insurance in place too, in case something happens to the property before you move in. If you're buying a leasehold flat, this might be covered by the landlord who owns the freehold. In Scotland, you'll need to have insurance in place from the date of entry. 

Read more about home insurance.

It’s time to pick up the keys to your new home – this is when the property legally becomes yours. All the forms have been signed, Stamp Duty has been paid and the money has been transferred to the seller’s solicitor.

• Tell your old utility suppliers you’re moving and take any final meter readings.
• Let the council know you’re moving so you can stop paying council tax at your old address.
• Tell your new utility suppliers when you move in and give them meter readings.
• Get in touch with Royal Mail to redirect your post from your old address.
• Find good tradespeople – from plumbers to plasterers, carpenters to electricians.

• Protect your home – alarm systems, locks, windows – there is a lot you can do to ensure your home is always safe.
• Insure what is inside your home too – protecting your possessions at home with insurance is vital.
• Explore our range of useful advice for homeowners.

You can find out more about your home insurance options

Life insurance is not a requirement of our mortgage. However, having it in place could offer you the confidence that whatever happens, you or your loved ones could be protected.

Find out more about your life insurance options.

Life insurance is provided by AIG Life Ltd.