First-Time Buyer Guide UK 2026: Everything You Need to Know

First-Time Buyer Guide UK 2026

Buying your first home is one of the biggest financial decisions you’ll ever make. This guide walks you through every step — from saving a deposit to getting the keys — with links to detailed guides on each topic.

Step 1: Check If You Qualify as a First-Time Buyer

You count as a first-time buyer if you (and anyone you’re buying with) have never owned a property before, whether in the UK or abroad. This qualification unlocks several benefits:

Stamp Duty relief (reduced or zero tax on purchases below a threshold)
Government schemes (First Homes, Shared Ownership, Lifetime ISA bonus)
Special mortgage deals designed for first-time buyers

Source: GOV.UK — First-time buyer stamp duty relief.

Step 2: Save Your Deposit

The deposit is your share of the property price — the rest comes from the mortgage. The bigger your deposit, the better your mortgage rate.

Deposit	LTV	Typical Mortgage Rate	Notes
5%	95%	Higher rates	Minimum deposit for most schemes
10%	90%	Moderate rates	Common for first-time buyers
15%	85%	Better rates	Significant rate improvement
20%+	80%	Best rates	Access to cheapest deals

For a typical UK property at £290,000 (ONS average, 2025), a 10% deposit is £29,000. Read our complete guide on how much deposit you need and how to save for a house deposit.

Step 3: Check Your Credit Score

Your credit score is one of the most important factors in mortgage approval. Lenders will check:

Your payment history (missed payments stay 6 years)
Your credit utilisation (keep below 30%)
Your electoral roll registration
Any County Court Judgments (CCJs)

Aim for a score of at least 881 (Experian) or 670 (Equifax) before applying. Read our guides on what a credit score is and how to increase your credit score.

Step 4: Understand Government Schemes

Several schemes can help first-time buyers:

First Homes Scheme

Discount of 30–50% off market price
Available on new-build homes
Household income cap: £80,000 (£90,000 in London)
Source: GOV.UK — First Homes

Shared Ownership

Buy a 25–75% share of a property
Pay rent on the remaining share
Can staircase (buy more shares) over time
Source: GOV.UK — Shared Ownership

Lifetime ISA (LISA)

Save up to £4,000 per year
Government adds a 25% bonus (up to £1,000/year)
Must be used for first home (under £450,000) or retirement
Must be held for 12+ months before withdrawal
Read our ISA explained guide for details

Mortgage Guarantee Scheme

Allows 5% deposits on homes up to £600,000
Government guarantees part of the mortgage
Ends 30 June 2025 — check current availability

Step 5: Get a Mortgage in Principle

Before house hunting, get a mortgage in principle (also called an Agreement in Principle or AIP). This is a statement from a lender showing how much they’d be willing to lend based on your income and credit check.

To prepare:

Gather 3 months of payslips and bank statements
Check your credit report with all three CRAs
Use a mortgage broker or comparison site
Get multiple AIPs to compare offers

Read our guide on how mortgages work and fixed vs tracker mortgages.

Step 6: Factor in All Costs

Buying a home costs more than just the deposit. Budget for:

Cost	Typical Amount	When Payable
Deposit	5–20% of price	On exchange
Stamp Duty	£0–£thousands	Within 14 days of completion
Solicitor/conveyancer	£850–£1,500	On completion
Survey	£400–£1,500	After offer accepted
Mortgage arrangement fee	£0–£2,000	Added to mortgage or upfront
Moving costs	£300–£1,500	On moving day

For a £290,000 home with a 10% deposit, expect total upfront costs of approximately £35,000–£40,000.

Step 7: Understand Stamp Duty

Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland. First-time buyers get relief on properties up to a certain value.

Always check the current thresholds as they change. Use the GOV.UK SDLT calculator for the latest rates.

Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both have different thresholds.

Frequently Asked Questions

“How much deposit do I need as a first-time buyer?” | “Most lenders require a minimum 5% deposit, but 10-15% gives you access to better mortgage rates. For a £290,000 home, that’s £14,500 (5%) to £43,500 (15%).” “Can I get a mortgage with bad credit as a first-time buyer?” | “Yes, but your options will be limited and rates higher. Specialist bad credit mortgages exist. Improving your score first will save you thousands. See our bad credit loans guide for context.” “What government help is available for first-time buyers?” | “Schemes include First Homes (30-50% discount), Shared Ownership (buy a share), and the Lifetime ISA (25% government bonus up to £1,000/year). Eligibility varies by scheme.” “How long does it take to buy a first home?” | “From offer acceptance to getting keys typically takes 8-12 weeks. The full process (saving deposit, finding a property, mortgage approval) usually takes 6-18 months.”

Sources and Further Reading

Conclusion

Buying your first home is achievable with the right preparation. The key steps:

Save the biggest deposit you can (aim for 10%+)
Build your credit score to at least 881 (Experian)
Explore government schemes — they can save you thousands
Get a mortgage in principle before you start viewing
Budget for all costs — not just the deposit

Start by reading our guides on saving a deposit and improving your credit score. For personalised mortgage advice, speak to an FCA-registered broker via Unbiased.co.uk.