A practical checklist to help first-time buyers prepare for deposit saving, government support, Agreement in Principle, credit checks and the steps that follow.
First-time buyer checklist
Buying your first home is a major milestone. The process can feel more complex than it used to be, particularly around deposits, affordability checks and the paperwork that sits behind mortgage decisions.
This checklist is designed to help you prepare in the right order, so you can move forward with clarity and confidence.
For more help getting started:
Renting vs buying: the decision isn’t always permanent
Buying your first home is exciting, but it’s also a major financial commitment. It’s not just about whether you can afford the mortgage payments today; it’s about whether you can comfortably manage the costs of buying, and still stay in control if your circumstances change.
Many people assume buying is the next step, but there are valid reasons to keep renting for a while longer. Buying is harder to reverse if you change your mind, and it usually involves longer-term costs you can’t simply “switch off”.
If you’re not sure whether now is the right time, it can help to compare:
- Flexibility: renting can be easier to adjust if your job, family plans, or location needs change
- Total cost: buying has upfront costs and ongoing responsibilities (such as insurance and maintenance)
- Long-term commitment: a mortgage term is typically measured in years, not months
If you decide to buy, the key is being prepared for both the immediate costs and the longer-term financial reality.
1) Get clear on your deposit target
A deposit is the portion of the property price you pay yourself, with the mortgage covering the remainder.
Most mortgage lenders expect a deposit as part of the purchase. While the exact minimum varies by lender, a deposit of around 5–10% is a common starting point. For example, a £200,000 home would typically require a £10,000 deposit at 5%.
Note: deposit requirements can vary depending on the mortgage product and your circumstances.
However, the deposit you can manage affects more than just how much you borrow. A larger deposit can:
- improve the range of mortgage options available
- reduce the amount you borrow
- potentially reduce monthly repayments
Where can your deposit come from?
Deposits can come from a mix of sources, such as:
- your own savings
- a gift or loan from family
- a government-backed savings scheme (see below)
- a combination of these
Why lenders care about your deposit
Lenders usually want to see that the deposit is genuine, available when needed, and can be evidenced clearly. If you’re planning to use a gift or a loan from family, it’s worth considering early how that money will be documented.
What to do now:
- Work out what deposit you can realistically save (and how quickly).
- Consider whether you’ll need to keep some cash back for costs that don’t come from the deposit.
- If you’re using savings vehicles (such as a Lifetime ISA), check the rules around timing and withdrawals.
Loan-to-value calculator
Change any value and the other figures will update automatically.
Try an example: £250,000 home with a £25,000 deposit → 90% LTV
2) Factor in the full cost of buying
A deposit is only one part of the picture. First-time buyers often underestimate the “extras” that come before you get the keys.
Common costs to budget for:
- Solicitor/conveyancing fees
- Mortgage valuation and lender-related fees
- Survey costs (where applicable)
- Moving costs
- Ongoing setup costs for the new home
Even if you’ve saved your deposit, you’re only at the starting line. Buying a property usually involves a sequence of costs, some paid upfront, some due at completion, and some spread across the process.
Below are the main items first-time buyers should budget for.
Mortgage arrangement fees
Some mortgage products include an arrangement fee. A fee can be paid upfront, or in some cases added to the mortgage.
If a fee is added to the loan, you may end up paying interest on it over the mortgage term. That doesn’t automatically make it “wrong”, it’s simply a factor to compare when choosing a mortgage product.
Lender’s valuation
Before the lender agrees the mortgage, they typically carry out a valuation to confirm the property is suitable security.
- it is usually paid upfront
- it can be a fixed cost or vary by lender
Even where a basic valuation is offered, there may still be additional costs depending on the property and the lender’s process.
Independent survey
A lender’s valuation is not the same as an independent survey. If you want a clearer view of the property’s condition, an independent survey can help identify potential issues.
Survey costs vary depending on the type of survey and the property, but it’s common for first-time buyers to budget around £1,000 or more.
Solicitor and conveyancing fees (plus disbursements)
Buying a home involves legal work, including handling contracts and carrying out required searches.
Costs typically include:
- solicitor/conveyancing fees
- disbursements (such as searches and other required payments)
A realistic budget range for many purchases is £500 to £1,000, though it can be higher depending on complexity.
Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax (SDLT) is payable when you complete the purchase, and the amount depends on the property price and the applicable rules. In England and Northern Ireland, the standard residential threshold is £125,000, but eligible first-time buyers purchasing for £500,000 or less pay no SDLT on the first £300,000 and 5% on the portion above £300,000. Different property taxes apply in Scotland and Wales.
Because SDLT is banded and rules can change, it’s worth checking the current calculation for your specific purchase price.
Moving costs
Moving costs can add up quickly, especially if you need a removal company, storage, or packing help.
Many first-time buyers budget roughly £500 to £1,000, depending on distance and the amount of stuff being moved.
Home insurance
Most lenders require buildings insurance. Many buyers also choose contents insurance, either separately or as a combined policy.
Insurance costs vary by property and coverage level, but it’s sensible to factor this into your monthly outgoings from day one.
Reservation fees for new-builds
If you’re buying a new-build property, developers may ask for a reservation fee to secure the property off the market.
This is often non-refundable if the purchase doesn’t proceed, and it’s usually separate from your mortgage deposit.
A simple way to reduce stress is to list these items early and assign rough figures, even if they’re estimates.
3) Check whether government support could apply
There are schemes intended to help first-time buyers with the upfront cost of purchasing. Availability and rules can vary by property and location.
Examples to consider:
- Shared Ownership: buy a share of a property and pay rent on the remainder.
- First Homes: purchase a home at a discount compared to market value, subject to eligibility.
- Local authority incentives: some regions may offer additional support.
What to do now:
- Identify which schemes are relevant to your target area.
- Confirm how the scheme interacts with mortgage borrowing and the type of property you’re considering.
For official guidance on government schemes, see: https://www.gov.uk/ (search for “first homes” and “shared ownership”).
Some first-time buyers use government-backed savings initiatives to grow their deposit. Two commonly discussed options are the Help to Buy ISA and the Lifetime ISA.
Help to Buy ISA (deposit saving)
The Help to Buy ISA was designed to boost savings for people buying their first home. It offered a government bonus on top of what you saved.
Important note: you can no longer open a Help to Buy ISA. Existing account holders can continue saving into it until November 2029 and claim the bonus until November 2030. If you’re considering using an existing account, check the latest eligibility and availability before planning around it.
Lifetime ISA (deposit saving and retirement)
A Lifetime ISA can be used towards your first home (subject to conditions) or kept for retirement.
Key features include:
- you can open it if you’re 18 or over and under 40 when you take it out
- you can pay up to £4,000 per year
- the government adds a 25% bonus, up to £1,000 per year
- you can use the money to buy your first home if you meet the rules
There are also important restrictions to understand, such as property value limits and timing rules (for example, the first home must cost £450,000 or less and the account needs to have received its first payment at least 12 months before the purchase). If you withdraw for reasons outside the permitted uses, a 25% withdrawal charge can apply, so it’s important to understand the conditions before committing.
4) Prepare your finances for affordability checks
Mortgage decisions are typically based on affordability, how your income and outgoings fit together, and whether the lender is comfortable with the overall risk.
What to do now:
- Review your monthly outgoings (including subscriptions, childcare, existing credit commitments and any regular spending).
- Make sure your income details are accurate and up to date.
- If you have irregular income, keep records that show how it’s earned.
The more organised your financial picture is, the smoother the process tends to be.
5) Consider getting an Agreement in Principle (AIP)
An Agreement in Principle (AIP) (sometimes called a “decision in principle”) is an early indication of how much a lender may be willing to offer, based on the information you provide.
Why it matters:
- Helps you set a realistic budget for viewings.
- Can strengthen your position when making an offer.
What to do now:
- Gather the documents and details you’ll likely need before you apply.
- Ensure the information you provide is consistent and accurate.
Lowest Rate First-Time Buyer Mortgages
6) Review your credit file before you apply
Credit checks are a normal part of the mortgage process. Lenders look at how you manage credit and whether there are any issues that could affect your application.
What to do now:
- Check your credit report for errors or outdated information.
- If you find inaccuracies, address them before you submit mortgage applications.
- Avoid making major financial changes right before applying (for example, taking on new credit or making large purchases on credit).
7) Choose the right property strategy
First-time buyers often focus on the “headline” price, but the mortgage process is influenced by property type, condition and how it fits lending criteria.
What to consider:
- Whether the property is suitable for the mortgage you’re aiming for.
- Any planned works or known issues that could affect valuation.
- Leasehold considerations (if applicable), including service charges and ground rent.
8) Understand the steps after you make an offer
Once you’ve found a property and your offer is accepted, the process moves into the stages that confirm the mortgage and complete the purchase.
Typical next steps include:
- Final mortgage application (moving from early checks to a full assessment)
- Property valuation (as required by the lender)
- Legal work to handle searches, contracts and completion
Keeping track of timelines and documents can help prevent delays.
9) Build a “buffer” for the unexpected
Even with careful planning, the buying process can throw up surprises, timing changes, extra paperwork, or costs that need clarifying.
What to do now:
- Keep a small cash buffer where possible.
- Be ready for questions from your solicitor and lender.
A simple readiness check
Before you commit, it helps to confirm you can cover the full buying picture, not just the deposit.
Consider whether you can:
- fund the deposit comfortably (including any scheme-related requirements)
- cover upfront costs such as valuation, survey, and legal fees
- pay completion costs such as SDLT
- manage moving and immediate setup costs
- keep a buffer for unexpected expenses
Buying is a process, and readiness is about having a plan for each stage.
Being ready to buy isn’t only about affordability, it’s about preparation. When you understand the deposit and the full list of costs, you’re more likely to feel confident through the process and better placed to manage the long-term commitment of homeownership.
10) Use professional support to reduce friction
A mortgage broker can help you navigate the options available to first-time buyers, especially where deposit size, credit history or scheme rules may affect lender choices.
What good support typically includes:
- Helping you understand which lenders may be a better fit for your circumstances.
- Clarifying what information lenders will need and how to present it clearly.
Key compliance note
Your property may be repossessed if you do not keep up repayments on your mortgage.
Business lending and most commercial mortgages are not regulated by the FCA.
This content is for general information purposes only and does not constitute personal advice. Mortgage terms, eligibility and scheme availability can vary.
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New Lane, Bradford, BD4 8BX
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