Buying your first home is one of the most exciting milestones in life, but it can also feel overwhelming.
From saving a deposit and understanding mortgage jargon to legal fees, surveys and getting the keys, there are a lot of moving parts. The good news is that with the right preparation, the process becomes much more manageable.
This guide explains everything first-time buyers in the UK need to know in 2026.
In the UK, you are generally classed as a first-time buyer if you have never owned a residential property anywhere in the world, whether freehold or leasehold. This matters because it can affect your eligibility for:
Even part-ownership or inherited property can affect your status, so it’s always worth checking before making an offer.
Before you start browsing Rightmove or booking viewings, the very first step is understanding how much house you can actually afford, and this is about much more than just the purchase price.
Think about:
how much money you have saved
A good place to start is with your household income. This means your salary, your partner's salary (if you're buying together) and any regular bonuses or commission.
As a very rough guide, many lenders may offer around 4 to 4.5 times your annual household income.
For example, if you earn £40,000 per year and are buying solo, a lender may offer approximately £160,000 to £180,000. If you're buying with a partner and your combined income is £60,000, this could mean a £240,000 to £270,000 mortgage.
This is not guaranteed, but it gives a useful starting point.
Important: budget for monthly life. Don’t just think about the maximum amount a lender can offer.
Ask yourself:
What will the monthly mortgage cost?
Sometimes borrowing less can actually lead to a much more comfortable lifestyle.
For most first-time buyers, the minimum deposit is 5% of the property value.
Property Price 5% Deposit 10% Deposit
£200,000 £10,000 £20,000
£250,000 £12,500 £25,000
£300,000 £15,000 £30,000
It's important to keep in mind that a larger deposit can help you access better mortgage rates, lower monthly repayments and give you stronger affordability overall.
While 5% is often possible, many buyers aim for 10% and above if they can. Recent market data shows the average first-time buyer deposit in England is 20% – though this varies by region.
This is where buying a new home North East can offer a major advantage, as property prices are typically more accessible than in Southern regions.
If you’re saving for your first home, a Lifetime ISA can be a handy tool.
A LISA is a tax-free savings account that is designed for people aged 18-39 who are looking to save for their first home or retirement. You can save up to £4,000 per tax year, and the Government adds a 25% bonus, up to £1,000 per year.
For example:
save £4,000
This is essentially free money towards your deposit, and for couples buying together, both buyers can use their own LISA.
An Agreement in Principle (AIP) is a document from a lender saying “based on what you’ve told us, we may be willing to lend you around this much.” It's not a mortgage offer, but it is incredibly useful.
You should get an AIP before you start viewing homes, and it helps because:
you know your likely budget
You pay 0% on the first £300,000
For example, if you buy a home for £180,000, you'll pay no Stamp Duty. If you buy a home for £350,000, you'll pay £2,500 Stamp Duty.
A lot of first-time buyers focus only on the deposit, but there are other upfront costs to plan for.
Typical additional costs include:
solicitor / conveyancing fees (£1,000 – £1,800)
A sensible estimate is to budget an additional £3,000 – £5,000 on top of your deposit, but this will vary.
Once your finances are clear, it's time to begin your search. Focus on:
location
layout
transport links
future lifestyle needs
It's also worth looking for homes and housebuilders that offer buying schemes to help you get on the property ladder, such as the Discount Market Sale (DMS) scheme or First Homes scheme.
For first-time buyers, it’s often worth thinking beyond your immediate needs. Ask yourself:
Could I stay here for 5+ years?
Would this work if my circumstances change?
Is there room to grow?
Once you find the right property, you’ll make an offer through the agent or developer. It's at this point having your AIP ready helps strengthen your position.
After your offer is accepted, your solicitor will handle property searches, contract checks, title verification and more.
Once contracts are exchanged, the purchase becomes legally binding.
Completion day is when you receive the keys and officially move in.
New-build homes are often an excellent choice for first-time buyers because they make the process simpler.
Chain-free purchase
Lower maintenance
Energy-efficiency
Predictable running costs
Modern layouts
Warranty protection
For buyers wanting a smoother first purchase, this can make a huge difference.
Homes by Carlton homes are particularly well suited to first-time buyers looking for move-in-ready homes in highly desirable North East locations.
Give us a call on 0333 034 1355 to discuss our beautiful new homes or book a viewing.
Typically 5–10%, depending on your mortgage and affordability. Speaking to an independent financial advisor is an excellent first step in the buying process, as they'll help you figure this out.
A property chain means multiple house sales depend on one another. For example: seller of house A can only move once they buy house B. This creates delays and risk.
New builds are often chain-free, which means there is no waiting for another sale to happen. This can make the process much smoother.
Not on the first £300,000 in England, provided the property price is £500,000 or below.
Yes, they're often ideal due to lower maintenance, energy-efficiency and a simpler purchase process.