First Time Buyer Guide UK 2026: Steps, Schemes and Costs Explained

The First Time Buyer Journey: An Overview

The first time buyer journey from decision to completion typically takes six to twelve months in the UK, depending on how long the mortgage search and property hunt take. Understanding the full process before starting prevents the most common first time buyer mistakes and prepares buyers for the costs involved at each stage.

The stages for a first time buyer are: assess affordability and set a budget; save the deposit; obtain a mortgage in principle; find a property; make an offer; instruct solicitors and apply for a full mortgage; complete surveys and searches; exchange contracts; and complete the purchase. Each stage has its own requirements, costs, and timescales.

First time buyers benefit from several government schemes designed to reduce the upfront deposit requirement or stamp duty burden. Understanding which schemes are currently available and whether any apply to a specific situation is one of the first things a first time buyer should assess.

How Much Do First Time Buyers Need to Save?

The minimum deposit for a first time buyer mortgage in 2026 is 5 percent of the purchase price, available through the Mortgage Guarantee Scheme. On a 300,000 pound property, a 5 percent deposit is 15,000 pounds. A 10 percent deposit of 30,000 pounds unlocks better rates and a wider choice of lenders.

Beyond the deposit, a first time buyer needs to budget for: stamp duty (nil on properties up to 300,000 pounds under first time buyer relief); solicitor and conveyancing fees of 1,000 to 2,000 pounds; survey costs of 400 to 800 pounds; mortgage arrangement fees of 0 to 2,000 pounds; and moving costs. Total upfront costs beyond the deposit typically run to 3,000 to 5,000 pounds.

The Lifetime ISA is the most efficient savings vehicle for first time buyers under 40. Contributions of up to 4,000 pounds per year receive a 25 percent government bonus of up to 1,000 pounds annually. Over three years of consistent saving, the LISA bonus adds 3,000 pounds of free money toward the deposit.

First Time Buyer Mortgage Options

First time buyers have access to the same mortgage products as other buyers, including fixed-rate, tracker, and variable rate products. The key constraint for most first time buyers is the deposit size, which determines the available loan-to-value ratio and the range of products accessible.

At 95 percent LTV (5 percent deposit), the Mortgage Guarantee Scheme enables mainstream lenders including Halifax, NatWest, Santander and HSBC to offer products to first time buyers. Rates at 95 percent LTV are higher than at lower LTV ratios, reflecting the greater risk to the lender.

First time buyers with a 10 to 15 percent deposit access a significantly wider product range and better rates. A first time buyer mortgage broker can assess the full market and identify the most appropriate product and lender for the specific circumstances, income type, and deposit size.

Government Schemes for First Time Buyers in 2026

The Mortgage Guarantee Scheme supports 95 percent LTV lending by providing a government guarantee to participating lenders. First time buyers need only a 5 percent deposit to access mainstream lender products under this scheme. The scheme has been extended and remains active in 2026.

Shared ownership allows first time buyers to purchase a share of a property (10 to 75 percent) and pay rent on the remainder, dramatically reducing the deposit and mortgage required. On a 25 percent share of a 300,000 pound property, a 10 percent deposit is 7,500 pounds rather than 30,000 pounds for full ownership.

Help to Buy closed to new applicants in 2022-23 and is no longer available. First time buyers seeking government assistance are directed to shared ownership and the Mortgage Guarantee Scheme. The Lifetime ISA bonus remains a valuable supplement to any deposit-saving strategy for buyers under 40.

First Time Buyer Stamp Duty Relief

First time buyers in England and Northern Ireland pay no stamp duty on the first 300,000 pounds of a property purchase and 5 percent on the portion between 300,001 and 500,000 pounds. For properties above 500,000 pounds, standard SDLT rates apply and the first time buyer relief does not reduce the liability.

To qualify, all buyers on the transaction must be first time buyers who have never owned a residential property anywhere in the world. Inherited property counts as previous ownership and disqualifies the buyer from the relief, even if the inheritance was a small share.

The maximum saving from first time buyer stamp duty relief is 10,000 pounds on a property priced between 300,000 and 500,000 pounds. On a 300,000 pound property, the saving compared with the standard SDLT rate is 5,000 pounds. The relief is applied automatically by the solicitor on the SDLT return.

The Conveyancing Process for First Time Buyers

Conveyancing is the legal process of transferring property ownership from seller to buyer. For a first time buyer, instructing an experienced conveyancing solicitor shortly after an offer is accepted ensures the process starts promptly and is managed correctly.

The solicitor carries out searches (local authority, environmental, drainage), reviews the title documents, raises enquiries with the seller's solicitor, and manages the mortgage lender's requirements. The process from instruction to exchange typically takes 8 to 12 weeks for a straightforward transaction.

Exchange of contracts is the point at which the purchase becomes legally binding on both parties. Before exchange, either party can withdraw without penalty. After exchange, withdrawal results in financial penalties. Completion - when the money transfers and the keys are handed over - typically follows exchange by one to four weeks.

Frequently Asked Questions

Last reviewed June 2026 · Kael Tripton Editorial