Things to consider for first-time home buyers

Ready to buy your first home? Consider these essential steps

Buying your first home is a huge milestone – whether you’re stepping onto the property ladder or supporting a loved one through the process. It can feel overwhelming, but a financial health check is a smart place to start:

1. Check your finances

Review your monthly income and outgoings to calculate your debt-to-income ratio. Lower is better for lenders.

2. Save a good deposit

Aim for at least a 5-10% deposit but saving more can give you access to better mortgage rates and lower monthly repayments.

3. Know and improve your credit score

Lenders check your credit file to assess risk. Use Experian, Equifax or TransUnion to check your score; higher scores unlock better mortgage deals.

4. Boost your savings with a Lifetime ISA (LISA)

If you are under 40, a LISA offers a 25% government bonus on savings up to £4,000 per year, a significant boost to your deposit.

5. Set a realistic budget

Aim to keep housing costs under 30-35% of your gross income, including mortgage, council tax, and utilities.

6. Secure mortgage pre-approval

This shows sellers you’re serious and gives you a clear idea of your borrowing limit.

7. Consult a mortgage broker

Brokers can help you save time, stress and money by comparing deals across the market and finding options suited to your circumstances, often at no fee to you.

8. Explore Government schemes

Look into Lifetime ISAs, Shared Ownership and First Homes for financial support.

9. Understand Stamp Duty

Understand Stamp Duty: First-time buyers in England and Northern Ireland pay no stamp duty on homes up to £425,000.

10. Don’t skip the survey

A property survey can reveal hidden issues that could cost you later; it’s worth the investment.

Sources: hoa.org.uk; experian.co.uk; gov.uk; yourmortgageshop.co.uk; moneysavingguru.co.uk; cjhole.co.uk