First-Time Buyers Guide
You’re buying your first home! It’s an exciting time, but with so much to think about it can be very daunting.
Our expert guidance can help you understand how to take your first step on to the property ladder.
What qualifies you as a first-time buyer?
One of the main reasons it is important to establish whether you qualify as a first-time buyer is because eligible buyers can benefit from First-Time Buyers’ Relief from Stamp Duty Land Tax (SDLT).
For SDLT purposes, you will generally be classed as a first-time buyer if you have never previously acquired a major interest in a residential property anywhere in the world.
This includes property that you may not have bought yourself. For example, if you have previously inherited or been given a property, you may no longer qualify as a first-time buyer for SDLT purposes. Even owning a share of a property can mean that you no longer meet the definition. If you are buying a property jointly, all purchasers must meet the first-time buyer conditions in order to claim First-Time Buyers’ Relief.
There are some important exceptions and additional rules, so if you are unsure about your eligibility, it is worth taking professional advice before proceeding with your purchase.
Your first step as a first-time buyer and one which you may already have done, is to save for a deposit.
How much deposit do first-time buyers need?
There is no single deposit amount that applies to every first-time buyer. The amount you need will depend on the mortgage you can obtain, the property you want to buy and the lender's criteria.
Some first-time buyers may be able to obtain a mortgage covering 90% or 95% of the property's value, meaning they would need a deposit of 10% or 5% respectively.
For example, on a £250,000 property:
A 5% deposit would be £12,500.
A 10% deposit would be £25,000.
A larger deposit can potentially give you access to a wider range of mortgage products, but it is important to consider the other costs associated with buying a property too, including legal fees, searches, surveys, mortgage fees and moving costs.
How much Stamp Duty will first-time buyers pay?
Since 1 April 2025, eligible first-time buyers in England and Northern Ireland can claim First-Time Buyers’ Relief on properties costing up to £500,000.
Currently:
-
There is no SDLT to pay on the first £300,000 of the purchase price.
-
SDLT is charged at 5% on the portion between £300,001 and £500,000.
-
If the property costs more than £500,000, First-Time Buyers’ Relief is not available and the standard SDLT rates apply to the whole purchase price.
For example, an eligible first-time buyer purchasing a £400,000 property would pay no SDLT on the first £300,000 and 5% on the remaining £100,000, giving an SDLT bill of £5,000.
What help is available for first time buyers?
There are a number of schemes and initiatives designed to help people buy their first home.
The Government's First Homes scheme, for example, allows eligible first-time buyers in England to purchase certain properties at a discount of at least 30% compared with their market value. There are eligibility requirements, including income limits and the requirement that the property is your only or main residence.
The Government has also recently announced a new scheme called Your First Home, which is intended to help first-time buyers who may struggle to save a large deposit or do not have access to financial help from family.
Under the proposed scheme, eligible first-time buyers will be able to purchase a participating new-build property with a 2.5% deposit, supported by a 20% government-backed equity loan. The scheme is expected to include household income and local property price caps, with further details still to be confirmed.
Time for the exciting part – house hunting!
Research your chosen areas and register with local estate agents, start to make appointments for properties within your budget and always try to view them in person, if possible.
Once you have found your chosen property - make an offer.
Once you have had an offer accepted you will then need to apply for a mortgage – if you’ve applied for a mortgage agreement in principle – this can give you and your vendor confidence, but it offers no guarantees. Be prepared, there are still plenty of hurdles to jump and the choice of mortgages can be overwhelming. You may want to consider using a mortgage broker as they have access to the majority of lenders and will be able to advise you on the best mortgage for your particular circumstances without you having to do all of the research – ask around for recommendations.
Find the right legal help.
Your next step is to find a conveyancer or property lawyer – do your research – look at recommendations. The cheapest is not always the best option and can end up costing you more money, time and stress in the long run. Be wary of online companies who appear to offer low prices as they can often have several hidden charges which can result in higher prices than using a local firm.
We would highly recommend using someone local to the area - you want a legal team that is prompt, efficient, cost-effective and knowledgeable.
Once you’ve had an offer accepted, it's time to get a house survey carried out on the property. This is to check that the home you're buying is worth what you're paying for it. It will also reveal any potentially costly defects in the building which you will need to factor into your budget.
Your lawyer at this point should request the contract papers from the seller’s conveyancer and when it arrives, carry out investigations, raise any required enquiries and apply for the required searches to be carried out against the property. It would also be a good idea at this stage to research removal companies, if necessary.
Your lawyer will then report to you on the search results and replies to the enquiries raised and will also send you copies of documents received from the seller’s conveyancer including copies of the legal title, Property Information Form and Fittings and Contents Forms.
You should make sure you have buildings insurance for the property you are buying in place from the date of exchange. Your solicitor or conveyancer should check you are happy to proceed and will then exchange the contracts with the seller’s solicitor and transfer the deposit monies to them on your behalf. This is the point at which your purchase becomes legally binding. Your lawyer will then arrange for the mortgage money to be sent directly to them and will also request any balance monies from you at this time.
Complete and move in!
The balance of the purchase price is transferred to the seller’s solicitor and they should ring you to let you know that all is completed and you can collect the keys from the seller’s estate agent. Following completion, the solicitor will pay any Stamp Duty Land Tax payable on your behalf.
First-time buyers currently benefit from Stamp Duty Land Tax (SDLT) relief in England and Northern Ireland. Eligible first-time buyers pay no SDLT on properties costing up to £300,000, with a reduced rate applying to the portion between £300,000 and £500,000. The relief is not available on properties costing more than £500,000. – use our conveyancing calculator to get an estimate for your conveyancing costs.
Finally, your solicitor should register your new ownership with H.M. Land Registry. Happy house hunting!
Further Reading
Get Expert Legal Advice On Moving House
Using highly experienced conveyancing solicitors makes your house move easier and less stressful. We help to make the process run more smoothly.
Contact Coles Miller’s conveyancing solicitors for more information about moving house
