Buying your first home is an exciting and significant milestone, but it can also feel overwhelming. There are many steps involved, from understanding the financial commitment to navigating the legal process.
To help you with the home-buying journey, our comprehensive checklist will guide you through everything you need to know when purchasing your first property. It covers financial readiness, costs to be expected, finding the right property, and legalities to be aware of.
Appointing an experienced conveyancing solicitor is crucial to the success of your property purchase. They will guide you through each stage, providing you with advice and reassurance. If you are a first time buyer, Eric Robinson Solicitors is here to help with professional conveyancing services tailored to first-time buyers.
Key Steps Covered
Financial Readiness – How Much Deposit Do I Need?
Most mortgage lenders will accept a deposit of 10% or more, but occasionally mortgage products do have lower minimum deposit requirements, sometimes as low as 5%.
It is advisable that first time buyers assume that a 10% deposit will be required when deciding which properties are within their budget. For example, if a first time buyer had a deposit of £15,000 saved, they may be able to look at properties worth £150,000 or below, but this depends ultimately on what their mortgage lender deems affordable for them.
Affordability is complex and if a first time buyer is getting a mortgage, it is all based on how much the lender is willing to give them, and this depends on many factors but mainly, household earnings as well as outgoings.
First time buyers also should consider what they are able to afford as a monthly payment. The larger your deposit, the less you need to borrow, and the lower your monthly payment. There are other factors which will affect your monthly payment such as your mortgage ‘term’ which is how long you will take to pay it back (anywhere from 25 – 40 years), and the interest rate which is broadly based on what the current interest rate is (set by the Bank of England) but you can still get slightly favourable interest rate deals if you put in a large deposit or have high affordability.
All this to say, first time buyers should consult with a mortgage advisor and a qualified conveyancing solicitor at the first stage of their property hunt. They will be able to guide you through the complexity of mortgage affordability, calculate how much you will be able to borrow, and instruct you on what your budget should be when property hunting.
Costs Beyond Your Deposit
Many first-time buyers focus solely on saving for a deposit, but there are additional costs involved in purchasing a home.
Conveyancing fees
Your conveyancing fees include the amount you pay your Solicitor for their services, plus disbursements. Disbursements mean fees you solicitor will pass on to third parties for things like identity checks, property searches, and Land Registry checks.
The biggest disbursement is usually Stamp Duty Land Tax (SDLT). From April 2025, first time buyers will only pay SDLT when purchasing a property worth £300,000 or more, and in this case, it will be less than the normal rate – 5% on anything above 300,000 up to £500,000. If a first time buyer is purchasing a property worth more than £500,000, the normal rates of SDLT apply for the full amount.
You can use our free conveyancing solicitor quote tool to find out how much you will pay for our services, disbursements and SDLT on your first time property purchase by entering some basic information. It is a no-obligation quote which will help you plan financially for the move.
Homebuyers survey
If the buyer wishes to have a homebuyers survey, it is their responsibility to arrange and pay for this. It will cost anywhere from £300 to £2000 depending on the size and complexity of the property. It is important to seek out a RICS surveyor for your home survey to ensure your survey is accurate, and reliable.
Mortgage fees
When applying for a mortgage you may need to pay an application fee, arrangement fee, and valuation fee as well as paying for a mortgage advisor if they charge a fee for their services.
Moving costs
In order to be fully prepared for the big day, you should look at quotes for professional moving companies or private van hire.
Home insurance
Buildings insurance is mandatory if you have a mortgage. You can expect to pay anything upwards of £150 to several hundred for buildings and content insurance for a year depending on the value of your home and belongings, and any risk factors such as risk of flooding or lack of home security.
Get a Mortgage in Principle
Once you’ve saved a deposit, you need to determine how much you can borrow. A mortgage in principle (MIP) helps with this. A MIP is an initial agreement from a lender stating how much they may lend you, based on your perceived affordability. It strengthens your position when making offers, showing sellers that you are a serious buyer.
You can opt for two different types of mortgage:
- Fixed-rate mortgages: Monthly payments remain the same for a set period (e.g., 2-5 years). You may want to consider locking in your interest rate if the interest rates are set to increase over the next few years.
- Variable-rate mortgages: Payments can fluctuate based on the lender’s interest rate. If mortgage rates are set to decrease over the next 2-5 years, you may want to go for this option. A qualified mortgage advisor or conveyancing solicitor will be able to advise on the best course of action for you.
Find the Right Property for You
Once you have a budget in mind, you can begin the search. Begin by using sites like Rightmove and Zoopla to search for homes.
There are many things to consider when searching for your first property: To find your perfect home, consider the following:
- The age of the property: Older properties have character and charm but may require renovation work. With a Newbuild you don’t need to worry about renovations but they come with their own challenges, such as waiting for them to be ready and leasehold restrictions.
- Leasehold or freehold: Freehold means you own the property and land. Leasehold means you own the property but not the land, and there may be ground rent/service charges.
- Location and transport links: Is it close to a train station? Can you easily commute to your workplace? Does the area fit with your lifestyle?
- Local property values: Consider if the area is increasing or decreasing in value so that you don’t get a shock if you try and sell the property further down the line.
- Local amenities: Consider what is important to you? Good local schools are invaluable if you have children or want to have a family in the future, and easy access to shops and restaurants is also a popular priority.
Viewing Properties
When viewing homes, keep the following checklist in mind:
- Check for signs of damp, mould, or structural issues.
- Test taps, toilets, heating, and electrics.
- Ask about property history and reasons for selling.
- Visit at different times of day to gauge noise and lighting.
- Check broadband speed and mobile phone signal.
Making an Offer and Getting Your Mortgage
Once you decide on a property which fulfills your criteria and is in budget, you can submit an offer through the estate agency which is selling the property. You can make an offer under the asking price but be prepared for some negotiation and to lose out if there are other offers above yours. You have a better chance of getting a lower offer accepted if the house has been on the market for a while, or if market conditions have changed.
Once you have had an offer accepted, it’s time to apply for your mortgage which will be quicker if you have a MIP in place already. For this process you will need to provide to your mortgage broker:
- Proof of ID (passport/driving licence).
- Proof of address (utility bills/bank statements).
- Proof of income (payslips or tax returns).
- Bank statements (typically the last 3-6 months).
- Details of outstanding debts/loans.
Appointing a Solicitor – The Conveyancing Process
If you haven’t already, once you have had an offer accepted on a house it is time to appoint a conveyancing solicitor to handle the legal process.
What a Conveyancing Solicitor Does:
- Arranges property searches (local authority, environmental, water & drainage).
- Identifies any legal issues with the property such as restrictive covenants.
- Drafts and reviews contracts.
- Liaises with the seller’s solicitor.
- Once you have received your offer they will arrange the exchange of contracts and completion. They manage the transfer of funds and the legal transfer of home ownership to you.
Conveyancing is a complex legal process with multiple moving parts. With such a large transfer of funds, the stakes are high to ensure that each stage is managed legally and accurately. It is essential for first time buyers to employ a qualified and experienced conveyancing solicitor to guide them through the process. Eric Robinson Solicitors has decades of experience managing property purchases of all types, especially first time purchases. We will manage your first time property purchase with efficiency and care.
For a no-obligation instant conveyancing quote, use our instant conveyancing quote tool. All we need is some basic property information in order to let you know how much you would pay in Solicitors’ fees with us.
Final Checks
Now that you’re a homeowner, there are a few final steps:
- Get home insurance: Coverage needs to begin the day you exchange contracts.
- Set up utilities: Remember to arrange gas, electricity, water, and broadband.
- Arrange council tax payments: Visit your local council website to inform them that you have moved.
- Update your address: Make a list of the organisations which need to know your new address, this will include banks, HMRC, DVLA, and insurance providers.
How Can Eric Robinson Help?
Buying your first home is an exciting but daunting process. In this article we have tried to give you an overview of the different stages of the journey, and a checklist of things to remember, questions to ask, and how to effectively use the skills and expertise of your conveyancing solicitor. Having a knowledgeable conveyancing solicitor on your side is crucial to ensuring your purchase is carried out legally and you are supported throughout.
At Eric Robinson, we specialise in guiding first-time buyers through the conveyancing process. Get a personalised instant conveyancing quote tool today and take the next step towards homeownership with confidence.
