Complete Guide for First-Time Buyers in 2026: From Saving to Keys

Buying your first home is the biggest financial decision most people ever make. This guide breaks the journey into manageable steps.

Step 1: Work Out What You Can Afford

Lenders typically allow 4–4.5x your annual income. On a £40,000 salary, you could borrow £160,000–£180,000. With a 10% deposit, that means buying up to ~£200,000. But keep total housing costs below 35% of your take-home pay.

Step 2: Build Your Deposit

Minimum 5% deposit for most mortgages. A 10% deposit unlocks better rates. 15–25% gives the best deals.

Lifetime ISA (LISA)

Under 40? Save up to £4,000/year and get a 25% government bonus — up to £1,000 free per year. Must be used for a first home under £450,000 or retirement.

Step 3: Get a Mortgage in Principle

Get an MIP before making offers. It shows estate agents you're serious and gives you a clear budget.

Step 4: Know the Additional Costs

• Stamp Duty: First-time buyers pay no SDLT on properties up to £425,000 (until threshold reverts)
• Solicitor fees: £1,000–£2,500
• Survey: £400–£1,500
• Mortgage arrangement fee: £999–£1,999
• Moving costs: £300–£2,000+