Buying your first home is the largest purchase most people ever make — and the process involves dozens of financial decisions, most of which aren’t well explained. This checklist covers everything from the moment you start saving to after completion day.
Stage 1: Before You Start Looking
1. Know What You Can Actually Afford
This is different from the maximum a lender will offer you.
Rough affordability calculation:
- Most lenders offer ~4–4.5× your annual income (or combined income)
- You need a minimum 5% deposit (10%+ unlocks better rates; 15%+ significantly better)
- Monthly mortgage payments typically shouldn’t exceed 35–40% of take-home pay for comfortable budgeting
Example:
- Combined income: £65,000
- Maximum mortgage: ~£260,000–£292,500
- Plus 10% deposit: £290,000–£325,000 purchase price
- Monthly repayment at 4.5% on £265,000 over 25 years: ~£1,460/month
Use our mortgage calculators to run your own numbers.
2. Check Your Credit Score
Do this 6–12 months before you want to buy to allow time to fix issues:
- Check on Experian, Equifax, and TransUnion (all free)
- Ensure you’re on the electoral roll
- Fix any errors or negative marks
- Reduce credit card utilisation to below 30%
- Don’t make any new credit applications in the 3 months before applying
3. Open or Maximise a Lifetime ISA
If you haven’t already — open a LISA now:
- Must be opened before age 40
- Contributes up to £4,000/year; government adds 25% (up to £1,000/year free)
- Must be held for 12 months before use
- Property must cost £450,000 or less
The earlier you open one, the sooner the 12-month clock starts. You don’t need to contribute fully straight away.
4. Understand the Full Cost of Buying
| Cost | Typical range | Notes |
|---|---|---|
| Deposit | 5–20% of purchase price | Larger deposit = better rates |
| Stamp Duty (SDLT) | £0 on first £300k (FTB) | Check current thresholds |
| Solicitor/conveyancer | £1,000–£2,500 | Shop around for quotes |
| Survey — Homebuyers Report | £400–£800 | Recommended minimum |
| Survey — Building (Full Structural) | £600–£1,500 | Older homes / conversion |
| Mortgage arrangement fee | £0–£2,000 | Can often be added to mortgage |
| Mortgage broker fee | £0–£500 | Many fee-free brokers available |
| Removal costs | £300–£2,000 | Varies by distance/volume |
| Buildings insurance (from exchange) | £150–£350/year | Required for completion |
| Initial furnishing/repairs | £1,000–£10,000+ | Variable |
Rule of thumb: Budget £5,000–£10,000 in buying costs beyond the deposit.
Stage 2: Getting Mortgage-Ready
5. Get a Mortgage Agreement in Principle
Before serious house viewing, get an AIP from your chosen lender or a mortgage broker. It:
- Shows estate agents you’re a serious buyer
- Gives you a realistic budget
- Doesn’t affect your credit score significantly (soft search on most AIP applications)
An AIP lasts 60–90 days typically. It’s not a binding offer.
6. Use a Mortgage Broker (Seriously)
A whole-of-market mortgage broker can:
- Access lenders not available directly to consumers
- Know which lenders will accept your profile (credit history, income type, deposit size)
- Handle paperwork and chase the lender
- May be fee-free (paid by lender commission) — ask upfront
You are not obligated to use your bank’s products. A broker often finds better rates.
7. First-Time Buyer Schemes (2026)
| Scheme | What it offers | Who qualifies |
|---|---|---|
| Lifetime ISA (LISA) | 25% bonus on savings | First-time buyers, under 40, home ≤ £450k |
| Shared Ownership | Buy 10–75% share, pay rent on rest | Income limits apply, varies by area |
| First Homes | 30–50% discount on new builds | FTBs, key workers — local authority criteria |
| 95% Mortgage Guarantee Scheme | Gov guarantee enables 5% deposit mortgages | Most mainstream lenders — check current availability |
Stage 3: Making an Offer → Exchange
8. Instruct a Solicitor or Licensed Conveyancer
Do this as soon as an offer is accepted — not before, but immediately after. Delays in instructing cost time and deals.
They will:
- Conduct searches (local authority, drainage, environmental)
- Review the seller’s paperwork
- Handle the transfer of funds
- Register your ownership at Land Registry
Fees: £1,000–£2,500 including disbursements (searches, registration fees, etc.)
9. Commission a Survey
| Survey type | Cost | What it tells you |
|---|---|---|
| Condition Report (Level 1) | £250–£400 | Basic condition — limited detail |
| Homebuyers Report (Level 2) | £400–£800 | Condition, visible defects, advice |
| Building Survey (Level 3) | £600–£1,500 | Full structural + detailed report |
For properties over 80 years old, conversions, or with obvious issues, get at minimum a Level 2 Homebuyers Report. For anything with roof access concerns, subsidence history, or structural age, get a Level 3 Building Survey.
The survey can provide grounds to renegotiate your offer if problems are found.
10. Formal Mortgage Offer
After your AIP and once you have a specific property, submit your full mortgage application. The lender will:
- Conduct affordability checks
- Request documents (payslips, bank statements, ID)
- Commission their own valuation (this is for the lender, not a survey for you)
Stage 4: Exchange → Completion
11. Exchange of Contracts
At exchange:
- You pay the exchange deposit (typically 10% of purchase price — distinct from your mortgage deposit)
- The completion date is legally agreed
- You are legally committed; walking away loses your deposit
Take out buildings insurance from exchange date — you are insuring it.
12. Completion Day
On completion:
- Your solicitor transfers funds (your deposit + mortgage funds) to the seller’s solicitor
- Keys are released (typically early afternoon)
- Property is yours
Bring: Evidence of buildings insurance, identification, any keys arranged by the estate agent.
After Completion
13. Land Registry Registration
Your solicitor registers the property in your name with HM Land Registry. This typically takes 2–8 weeks (or longer — HMLR has significant backlogs). Until registered, you still own the property.
14. File Stamp Duty Return
Your solicitor files this on your behalf within 14 days of completion. Any SDLT due is paid at this stage.
15. Change Your Address — Everywhere
| Organisation | Action needed |
|---|---|
| Driving licence | Update at DVLA (free online) |
| HMRC / Tax records | Update Personal Tax Account |
| Electoral Roll | Register at new address |
| Bank accounts | Update all banks and building societies |
| Pension providers | Update all policies |
| GP / NHS | Register with new local practice |
| Utilities | Set up accounts (energy, water, broadband) |
| Council Tax | Register with local authority |
| Insurance policies | Update home, car, contents |
First Home Financial Checklist
| Task | Stage | Done? |
|---|---|---|
| Know your realistic budget (not just max mortgage) | Pre-search | ☐ |
| Check credit score and fix issues | 6–12 months before | ☐ |
| Open/maximise Lifetime ISA | As early as possible | ☐ |
| Build deposit + buying costs fund | Pre-search | ☐ |
| Get mortgage AIP | Before active searching | ☐ |
| Use a whole-of-market mortgage broker | Before offer | ☐ |
| Research first-time buyer schemes | Pre-offer | ☐ |
| Instruct solicitor/conveyancer | On offer accepted | ☐ |
| Commission survey | Early in conveyancing | ☐ |
| Submit formal mortgage application | After offer accepted | ☐ |
| Arrange buildings insurance from exchange | At exchange | ☐ |
| Complete address change with all organisations | After completion | ☐ |
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