First-Time Buyer’s Guide: Everything You Need to Know About Purchasing a Home in 2025

Buying your first home is an exciting milestone, but it can also be overwhelming. From choosing the right mortgage to navigating surveys and legal checks, the process involves more than just finding the perfect property.

If you're a first-time buyer in the UK, understanding each stage of the journey can help you feel more confident and avoid costly surprises. This guide covers the key elements of buying your first home in 2025, including mortgages, making an offer, surveys, legal completion, and the hidden costs you’ll want to budget for.

Mortgages: Understanding the Options for First-Time Buyers

Your mortgage is likely to be the biggest financial commitment of your life, so getting it right is crucial. There are several types of mortgages available to first-time buyers in the UK, and each suits different circumstances.

Fixed-Rate Mortgage

You pay the same interest rate for a set number of years—usually 2, 3, 5 or 10.

Best for: Budgeting and stability in monthly payments.

Tracker Mortgage

The interest rate follows the Bank of England’s base rate, meaning your payments can rise or fall.

Best for: Buyers comfortable with risk and fluctuations.

Discount Mortgage

A variable-rate deal offering a discount on the lender’s standard rate for a set period.

Best for: Short-term savings if you expect rates to stay low.

Help to Buy / Shared Ownership (England, Wales & NI)

These schemes allow you to buy with a smaller deposit, sometimes as low as 5%.

Best for: Buyers struggling with affordability in high-priced areas.

Guarantor / Family-Assisted Mortgages

A parent or family member agrees to cover repayments if you can’t, helping you secure a better deal.

Best for: Buyers with limited credit or deposit savings.

Tip: Consider using a mortgage broker to explore all available options, especially those tailored to first-time buyers, such as lender-specific deals or cashback offers.

Preparing an Offer: What to Do Before Making Your Move

Before making an offer on a property, it’s essential to be fully prepared. This increases your chances of success and helps you avoid delays.

Steps to Take Before Offering:

Get a Mortgage Agreement in Principle (AIP)

This confirms how much a lender is willing to loan you, giving agents and sellers confidence in your position.

Check the Local Market

Review recent sale prices for similar homes in the area to ensure your offer is both competitive and fair.

Have Your Finances Ready

Ensure your deposit is in place and you’re aware of all related costs, including stamp duty (which may be discounted for first-time buyers).

Research the Property Thoroughly

Visit more than once, ask about running costs, and consider its long-term value or resale potential.

Consider Instructing a Conveyancer Early

Having a solicitor or licensed conveyancer ready can expedite the process once your offer is accepted.

Tip: When you’re ready, make your offer via the estate agent, and be prepared to negotiate based on the market and any work the property may need.

Surveys: Why They Matter and Which One You Need

Once your offer is accepted, it’s time to instruct a surveyor. A property survey is crucial—it helps you identify any structural issues before you’re legally committed.

Types of Surveys:

Mortgage Valuation

Required by the lender but only confirms the property’s market value—it won’t reveal defects.

Homebuyer Report (Level 2)

Covers visible issues like damp, roof condition, and electrics. Ideal for modern homes in good condition.

Building Survey (Level 3)

A thorough inspection suited to older, unusual, or renovated properties. Highlights major issues and repairs.

Why surveys matter:

• They give peace of mind
• Help you renegotiate the price if serious defects are found
• Prevent unexpected repair bills later

Tip: Always choose an RICS-registered surveyor for reliable, industry-standard reporting.

Legal Completion: What Happens in the Final Stages

The final stretch of buying your first home can feel like a waiting game—but several important steps happen behind the scenes.

What to Expect:

Exchange of Contracts

You’ll sign legally binding agreements and pay your deposit (typically 5–10%). After this point, neither party can pull out without penalty.

Final Mortgage Checks and Searches

Your solicitor will carry out property searches and final checks to ensure there are no legal issues with the title or land.

Set a Completion Date

Agree to this with the seller via your solicitor. Completion can happen days or weeks after exchange, depending on the chain.

Completion

On the agreed date, the remaining funds are transferred to the seller, and the keys are released. You officially own the property!

Post-Completion Admin

Your solicitor will handle Stamp Duty payments (if applicable), register the sale with the Land Registry, and send you the title deed.

Tip: Avoid booking removals or time off work until you have a confirmed completion date—it’s the only reliable moving day.

Costs: What First-Time Buyers Should Budget For

Buying a home involves more than just the deposit and mortgage payments. It’s essential to budget for all associated costs to avoid last-minute stress.

Additional Costs to Expect:

Stamp Duty

First-time buyers in England & NI don’t pay Stamp Duty on properties up to £425,000. On properties up to £625,000, you’ll pay a reduced rate on the difference.

Legal Fees

Solicitors typically charge £800–£1,500. Ensure this includes local searches and disbursements.

Survey Costs

Homebuyer reports: £400–£700

Building surveys: £700–£1,200

Mortgage Fees

This can include:

• Arrangement fees
• Valuation fees
• Broker fees (if applicable)

Moving Costs

Depending on distance and volume, removals may cost £300–£1,000+.

Home Insurance

Buildings insurance is often required before exchange.

Furnishing and Decorating

Factor in costs for appliances, furniture, and cosmetic upgrades once you move in.

Tip: Use a spreadsheet to plan and track costs from offer to completion, so nothing catches you off guard.

Be Informed, Stay Organised, and Ask Questions

Buying your first home is a significant commitment, but it doesn’t have to be overwhelming. Understanding each stage—mortgages, offers, surveys, legalities, and costs—puts you in control and helps avoid delays or disappointments.

Work with experienced professionals, take your time with significant decisions, and don’t be afraid to ask questions along the way. The more informed you are, the smoother your home-buying journey will be.

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