Step 1: Save a deposit
The deposit is the part of the price you pay yourself. With 5%, you’ll need a 95% mortgage; these are widely available on homes up to £600,000, helped by the government’s permanent Mortgage Guarantee Scheme. Rates fall as your deposit grows, with big steps at 10%, 15%, 25% and 40%.
A Lifetime ISA is the best way to save for it if you’re eligible:
- Open one aged 18 to 39, and pay in up to £4,000 a year.
- The government adds a 25% bonus: up to £1,000 a year.
- Use it for a first home costing up to £450,000, bought with a mortgage, at least 12 months after your first payment in.
- Taking money out for anything else (except at 60 or if you’re terminally ill) costs a 25% charge, which takes back more than the bonus.
| Part | Amount |
|---|---|
| What you pay in | £16,000 |
| The government bonus (25%) | £4,000 |
| Towards your deposit | £20,000 |
Used for a first home costing £450,000 or less, it's all yours. Taken out for anything else before 60, the 25% charge would leave £15,000: less than you paid in.
Our Lifetime ISA calculator shows what your savings and bonus add up to by the time you buy.
Budget 2026 confirmed a First Time Buyer ISA to replace the Lifetime ISA for new savers from April 2029: a 25% government bonus on the final balance, up to a maximum of £20,000, paid when you buy a first home worth up to £450,000. Until then you can still open a Lifetime ISA, and existing accounts keep the current rules. From 29 October 2026, taking Lifetime ISA money out to buy a home over £450,000 costs 20% instead of 25%.
Step 2: Work out how much you can borrow
Most lenders lend up to about 4.5 times your income (your combined income if you buy together), and some lend more to higher earners. They also check your spending, debts and credit history, so you may be offered less.
Example: a £250,000 home with a 10% deposit (£25,000) needs a £225,000 mortgage. At 4.5 times income, that’s a household income of about £50,000.
How much can I borrow? works it out with your income and savings, and shows the monthly repayment.
Step 3: Get ready to apply
- Check your credit file with all three agencies and fix any mistakes. See credit scores explained.
- Register to vote at your address.
- Get an agreement in principle (AIP) from a lender or broker. It shows sellers you can borrow, and usually uses a soft credit search.
- Keep your bank statements tidy for a few months: lenders look at your spending.
Step 4: Budget for the costs
| Cost | What to expect |
|---|---|
| Stamp Duty (England and NI) | First-time buyers: none up to £300,000, 5% on £300,001 to £500,000, no relief above £500,000 |
| Solicitor (conveyancing) | Usually over £1,000, plus searches |
| Survey | Several hundred pounds or more |
| Mortgage fees | Product and valuation fees, sometimes added to the loan |
| Moving and furnishing | Varies |
Scotland and Wales have their own taxes with different rules: see Stamp Duty for first-time buyers.
Step 5: The buying process
- Make an offer and, once it’s accepted, instruct a solicitor.
- Apply for your mortgage and book a survey.
- Your solicitor does the searches and checks the contract; you get a mortgage offer.
- Exchange contracts: you pay the deposit and the sale becomes binding.
- Completion: the money moves, and you get the keys.
It usually takes a few months from offer to keys.
If you can’t afford to buy outright
Shared Ownership in England lets you buy a share of a home and pay rent on the rest, if your household income is £80,000 or less (£90,000 in London). You can usually buy more shares later. Read the lease carefully: you pay the full service charge, and rules on selling can be stricter.