The Ultimate First-Time Buyer Checklist: From Deposit to Keys
1: Save Your Deposit (3-12+ Months Before Buying) Your deposit is the foundation of your home purchase. Most first-time buyers need at least 5-10% of the property’s value, though a larger deposit often unlocks better mortgage rates. Action points: Determine your target amount: If you’re looking at properties around £250,000, a 10% deposit means saving £25,000 Open a Lifetime ISA: First-time buyers can benefit from a 25% government bonus on savings up to £4,000 per year Set up automatic transfers: Make saving non-negotiable by automating monthly deposits into your savings account Track your progress: Review your savings quarterly and adjust your budget if needed Research government schemes: Look into Help to Buy ISAs, shared ownership, or other first-time buyer programs you might qualify for Pro tip: Don’t forget to account for additional costs beyond your deposit. You’ll need funds for surveys, legal fees, stamp duty (if applicable), and moving costs. 2: Check Your Credit Score (2-3 Months Before Applying) Your credit score plays a crucial role in the mortgage process UK lenders use to assess your application. A strong credit profile can mean better rates and more lender options. Action points: Get your free credit report: Use services like Experian, Equifax, or TransUnion Review for errors: Dispute any incorrect information immediately Register to vote: Being on the electoral roll significantly improves your credit score Pay down existing debts: Focus on credit cards and loans with high balances Avoid new credit applications: Multiple applications in a short period can harm your score Close unused accounts: Too many open credit lines can be a red flag to lenders Timeline consideration: Credit score improvements take time. Start this process at least 2-3 months before applying for your mortgage. 3: Get Your Agreement in Principle (AIP) (1-2 Months Before House Hunting) An Agreement in Principle, also called a Decision in Principle or mortgage in principle, is a statement from a lender indicating how much they’d be willing to lend you. It’s an essential early step in your first time buyer checklist. Action points: Gather necessary documents: Recent payslips, bank statements, proof of deposit, ID, and proof of address Research mortgage brokers: Consider using a broker who can access deals across multiple lenders Compare interest rates: Look at fixed-rate vs. variable-rate mortgages Calculate affordability: Most lenders offer 4-4.5 times your annual salary Submit your AIP application: This can often be done online and takes just minutes Receive your certificate: Keep this safe to show estate agents and sellers Why it matters: An AIP shows sellers you’re a serious buyer and helps you understand your budget before falling in love with properties you can’t afford. 4: Find Your Property (2-8 Weeks) Now comes the exciting part of the steps to buy a house UK: actually finding your future home. With your AIP in hand, you’re ready to start viewings. Action points: Create a must-have list: Be clear about non-negotiables (location, bedrooms, parking, etc.) Set up property alerts: Use Rightmove, Zoopla, and OnTheMarket for notifications Research neighborhoods: Visit areas at different times of day and week Book viewings: Aim to see properties quickly in competitive markets Take photos and notes: Properties blur together after viewing several Ask crucial questions: Council tax band, service charges, any known issues, included fixtures View multiple times: Consider a second viewing before making an offer, ideally at a different time of day Red flags to watch for: Damp, structural cracks, poor maintenance, excessive noise, or signs of subsidence. 5: Make an Offer (1-3 Days) When you find the right property, it’s time to put in an offer. In England and Wales, offers aren’t legally binding until contracts are exchanged. Action points: Research comparable sales: Check what similar properties have sold for recently Make your initial offer: This is typically 5-10% below asking price, but market conditions vary Negotiate tactfully: Be prepared for counteroffers Include your position: Mention you’re a first-time buyer with an AIP and no chain Get it in writing: Once accepted, request written confirmation Agree on timeframes: Discuss expected completion dates Market insight: In hot markets, you may need to offer asking price or above. In slower markets, there’s more room for negotiation. 6: Instruct a Solicitor or Conveyancer (Within 1 Week of Offer Acceptance) Conveyancing is the legal process of transferring property ownership. This is a critical step in your first time buyer guide UK journey. Action points: Get quotes from multiple conveyancers: Expect to pay £850-£1,500 plus disbursements Check reviews and credentials: Ensure they’re registered with the Solicitors Regulation Authority Ask about timeframes: Conveyancing typically takes 8-12 weeks Provide required documents: ID, proof of address, proof of funds Establish communication preferences: Find out how they’ll keep you updated Understand the process: Ask them to explain each stage so you know what’s happening What your conveyancer does: They handle local searches, check the property’s legal title, draft contracts, liaise with the seller’s solicitor, and manage the transfer of funds. 7: Submit Your Full Mortgage Application (Within 1 Week of Offer Acceptance) Your AIP was just the beginning. Now you need full mortgage approval, which is a more detailed part of the mortgage process UK buyers must complete. Action points: Contact your mortgage broker or lender: Inform them your offer has been accepted Submit comprehensive documentation: 3 months’ payslips and bank statements, P60, tax returns (if self-employed), proof of deposit source Complete the application form: Be thorough and accurate Declare all financial commitments: Credit cards, loans, maintenance payments, etc. Be available for follow-up questions: Lenders may request additional information Wait for the valuation: The lender will arrange a property valuation (usually 7-14 days) Timeline: Full mortgage approval typically takes 2-4 weeks, though this varies by lender and application complexity. 8: Arrange Your Property Survey (Simultaneous with Mortgage Application) While the lender’s valuation checks the property is worth what you’re paying, it doesn’t assess its condition. That’s where your own survey comes in, and it’s a crucial step in any first time buyer checklist. Action points: Choose your survey type: