Buying your first home is one of the biggest financial decisions you’ll ever make. For most first-time buyers in the UK, the journey involves years of saving, understanding a mortgage market with hundreds of options, navigating government schemes, and managing a buying process that can take several months from offer to completion.
The good news is that first-time buyers have access to significant advantages — stamp duty relief, the Lifetime ISA bonus, shared ownership schemes, and specialist mortgage products designed specifically for people buying their first property. The challenge is understanding which options apply to your situation, how much you can realistically afford, and what the true costs of homeownership look like beyond the purchase price.
The UK property market in 2026 presents both challenges and opportunities for first-time buyers. House prices remain high relative to average earnings, but mortgage rates have stabilised, government schemes continue to evolve, and some areas of the country offer far better affordability than others.
This guide brings together every first-time buyer article on PocketWise — from saving your deposit and choosing the right mortgage to government schemes, the buying process, and the costs you need to budget for.
Saving for Your Deposit
The deposit is usually the biggest barrier for first-time buyers. These guides help you build your deposit faster and make the most of government incentives.
- Saving for a House Deposit — Strategies for building your deposit faster, including budgeting techniques, bonus-paying savings accounts, and how long it typically takes at different salary levels.
- How Much Deposit Do I Need for a House? — A detailed look at minimum deposit requirements, how deposit size affects your mortgage rate, and when it’s worth waiting to save more.
Government Schemes for First-Time Buyers
Several government initiatives can help you buy your first home, from deposit bonuses to discounted properties.
- First-Time Buyer Guide — A comprehensive overview of the first-time buyer journey in the UK, including all current schemes, mortgage options, and step-by-step guidance.
- First Homes Scheme UK — How the First Homes discount scheme works, eligibility criteria (local connection, income caps), and how to apply.
- Help to Buy Alternatives — With the Help to Buy equity loan scheme now closed, these are the current alternatives available to first-time buyers.
- Help to Build Scheme UK — The government scheme supporting self-build and custom-build projects for first-time buyers and existing homeowners.
- Shared Ownership vs Help to Buy — Comparing the two main government affordable homeownership schemes and which suits different circumstances.
- First-Time Buyer Mortgage — 5% Deposit — Mortgage options available with a 5% deposit, including the mortgage guarantee scheme and specialist lenders.
How Much Can You Afford?
Understanding your borrowing power and the true costs of buying a house is essential before starting your search.
- How Much House Can I Afford UK? — A guide to calculating your maximum affordable purchase price based on income, deposit, debts, and living costs.
- How to Apply for a Mortgage as a First-Time Buyer — A step-by-step guide to the mortgage application process, from agreement in principle to full approval.
- Cost of Buying a House UK — A complete breakdown of every cost involved in buying a property, from deposit to moving day.
- Home Buying Costs Calculator — A tool to estimate the total cost of your purchase including deposit, stamp duty, fees, and moving costs.
- Mortgage Affordability Calculator — Work out how much lenders are likely to offer you based on your income and outgoings.
The Buying Process
Once you’ve found a property, understanding the legal and practical steps of the buying process helps you avoid delays and costly mistakes.
- Helping Your Child Buy a House — Options for parents wanting to help, including gifted deposits, guarantor mortgages, and joint ownership structures.
Government Schemes for First-Time Buyers
Several government-backed schemes exist specifically for first-time buyers. Eligibility and availability change periodically, so always verify current status at gov.uk:
| Scheme | Who it’s for | How it works | Current status |
|---|---|---|---|
| Mortgage Guarantee Scheme | All buyers on 5% deposit homes | Government guarantees part of mortgage to lender | Check GOV.UK for current version |
| Lifetime ISA (LISA) | Under 40s buying first home up to £450,000 | 25% government bonus on savings up to £4,000/year | Available |
| Shared Ownership | Buying a share of a property (25–75%) | Pay mortgage on share + rent on remainder | Available through housing associations |
| First Homes | Key workers and local buyers | Discount of 30–50% on new-build purchase price | Available |
| Help to Build | Self-builders | Equity loan for self-build projects | Check GOV.UK |
The Lifetime ISA: The Best Deal for Most First-Time Buyers
The LISA is often the most underused first-time buyer benefit. You can save up to £4,000 per year into a LISA and receive a 25% government bonus (£1,000/year maximum). Key rules:
- Must be opened before age 40
- Can only be used for a first home (price up to £450,000) or retirement after 60
- Penalty of 25% applies if you withdraw for any other reason (this effectively takes back the bonus plus some of your own money)
- Both partners in a couple can open a LISA — combined bonus potential £2,000/year
Over 5 years, a couple maxing their LISAs would save £40,000 and receive £10,000 in government bonuses.
The True Costs of Buying: What First-Time Buyers Forget
Beyond the deposit, buying a home involves significant additional costs that can catch first-time buyers off guard:
| Cost | Typical amount | Notes |
|---|---|---|
| Stamp Duty Land Tax | £0 (most FTBs on homes under £425,000) | First-time buyer relief applies to £625,000 max |
| Solicitor/conveyancing | £1,500–£3,000 | Fixed fee or % of price |
| Mortgage valuation fee | £150–£1,500 | Some lenders offer free valuations |
| Survey (homebuyer report) | £400–£1,000 | Strongly recommended |
| Building survey (older homes) | £600–£1,500 | For pre-1980 or unusual properties |
| Mortgage broker fee | £0–£500 | Whole-of-market brokers may charge a fee |
| Removal costs | £300–£2,000 | Depends on property size and distance |
| Initial furnishing | £2,000–£10,000 | Highly variable |
| Buildings + contents insurance | £200–£500/year | Required before exchange |
Total additional costs beyond deposit: typically £5,000–£10,000 for a standard purchase. Budget at least £5,000 on top of your deposit.
Mortgage in Principle: Why You Need One Before Viewing
A Mortgage in Principle (MIP) — also called an Agreement in Principle (AIP) or Decision in Principle (DIP) — is a lender’s conditional offer stating how much they’d lend you. You should get one before seriously viewing properties because:
- Estate agents ask for it as proof you’re a credible buyer
- It shows sellers you’re ready to proceed quickly
- It helps you search in a realistic price range
- Going through a mortgage broker for your MIP is usually the fastest route
MIPs typically last 60–90 days. They involve a credit check (usually a soft search, but confirm with the lender), and do not commit you to anything.
What Gazumping and Gazundering Mean
The period between offer accepted and exchange of contracts is vulnerable to two costly events:
- Gazumping: A seller accepts a higher offer from a different buyer after accepting yours. Legal in England and Wales (not Scotland under offer-over system). Protecting yourself: move quickly, build rapport with the seller/agent, and exchange contracts as fast as possible.
- Gazundering: You (the buyer) reduce your offer immediately before exchange, threatening to pull out otherwise. Gives you leverage but damages relationships and is considered poor practice.
In both cases, the party that loses gains nothing but has already spent money on surveys and legal fees. Getting to exchange quickly (aim for 8–12 weeks) reduces this risk.