Getting on the property ladder usually means buying your first home. You will normally need a deposit, enough income to support a mortgage, money for buying costs and a home that fits your budget.
The process will depend on how you buy. On the open market, you will usually make an offer through an estate agent. If you are buying a new-build or Shared Ownership home, you may complete an affordability assessment and reserve a specific home instead.
If buying a suitable home on the open market is beyond your current budget, Shared Ownership may provide another route to homeownership.
This guide gives a general overview of buying a home in England. It is not financial, legal, tax or surveying advice. The process, costs, eligibility rules and legal terms will depend on the home and your circumstances, and they may change over time. Check current government guidance and take appropriate professional advice before making financial or legal decisions.
Prepare your finances
Work out what you can afford
Before looking for a home, work out how much you can comfortably spend each month. Your budget should cover more than the mortgage payment.
A mortgage lender will usually consider your income, regular spending, debts, credit history and other financial commitments when assessing an application.
Do not base your budget only on the maximum amount a lender may offer. Consider whether you could continue to afford your housing costs if your bills increased or your circumstances changed.
Include ongoing expenses such as:
- Mortgage repayments.
- Council Tax.
- Gas, electricity and water.
- Insurance.
- Repairs and maintenance.
- Service or estate charges where applicable.
- Rent on the share you do not own if you buy through Shared Ownership.
Your home may be repossessed if you do not keep up repayments on your mortgage. If you buy through Shared Ownership, you will also be responsible for the rent and other charges set out in your lease.
If you experience difficulty making payments, contact your lender, housing provider or an independent debt-advice service as soon as possible.
Save for a deposit
A deposit is the amount you contribute towards the price of the home. A mortgage will normally cover the remaining amount, subject to the lender’s checks, valuation and approval.
The deposit required will depend on the lender, mortgage product, home and your circumstances. Some mortgages may be available with a smaller deposit, but availability and eligibility are not guaranteed.
Keep your deposit separate from money intended for legal fees, surveys, moving costs and unexpected expenses.
For illustration, a 10% deposit on a £300,000 home would be £30,000. This example does not include fees or other buying costs.
Consider your saving options
A Lifetime ISA may help an eligible first-time buyer save towards a home, as the government adds a bonus to qualifying savings.
Property-price limits, account-opening periods, withdrawal conditions and other rules apply. These may change over time.
Read the current Lifetime ISA rules on GOV.UK and speak to your account provider and conveyancer before relying on the money for your purchase.
You can also read about how a Lifetime ISA could help you buy a home.
Review your credit history
Your credit history can affect whether a lender accepts your application and which mortgage products it offers.
There is no single credit score used by every mortgage lender. Lenders use their own affordability and eligibility checks, so a score shown by a credit-reference agency does not guarantee that an application will be accepted.
Before applying, check your statutory credit reports and correct any inaccurate information. Paying bills and credit commitments on time and staying within agreed credit limits can help you maintain your credit record.
Budget for buying costs
The costs that apply will depend on the home, mortgage, tenure and buying arrangements. Ask your mortgage adviser and conveyancer for estimates based on your proposed purchase.
You may need to budget for:
- Conveyancing and search fees.
- An independent survey.
- Mortgage or broker fees.
- HM Land Registry fees.
- Stamp Duty Land Tax.
- Buildings and contents insurance.
- Removal or storage costs.
- Repairs, appliances, flooring or furniture.
Stamp Duty Land Tax may apply when buying a home in England. The amount and payment arrangements will depend on the transaction and the rules in force at the time.
Different arrangements can apply to Shared Ownership purchases. Ask your conveyancer to explain how Stamp Duty Land Tax applies to your purchase.
Check the current residential Stamp Duty Land Tax guidance on GOV.UK and the Stamp Duty Land Tax guidance for Shared Ownership purchases.
If you are buying a leasehold or Shared Ownership home, you may also need to pay:
- Rent on the share you do not own.
- Service charges.
- Estate charges.
- Management fees.
- Buildings insurance charges.
- Contributions towards future major work.
- A reservation fee.
- Leasehold-related legal costs.
Ask for details of all known charges before offering on or reserving a home. Check what each charge covers, how it is reviewed and whether it may change.
Explore your mortgage options
Compare mortgages
A mortgage is a long-term loan secured against your home. Interest rates, fees, repayment terms and eligibility requirements vary between products and lenders.
A fixed-rate mortgage has an interest rate that remains the same for an agreed period. A variable-rate mortgage has an interest rate that can change, which means your payments may rise or fall.
Compare fees and terms as well as the advertised interest rate.
If you use a mortgage adviser or broker, ask which lenders and products they consider, whether any lenders are excluded, how the adviser is paid and whether you will need to pay a fee.
Get a Mortgage in Principle
Before making an offer, you may want to apply for a Mortgage in Principle. It may also be called an Agreement in Principle or Decision in Principle.
This gives an indication of how much a lender may be prepared to lend based on the information available at that stage.
A Mortgage in Principle is not a guaranteed mortgage offer. A lender will still need to assess your full application, supporting documents and the home you want to buy.
Check whether the lender will carry out a soft or hard credit search when you apply.
The linked Guinness Homes guide focuses on Shared Ownership. The process may differ for an open-market purchase.
Find the right home
Choose an area
Think about which parts of a location are essential and where you could compromise.
Consider your journey to work, public transport, local services, schools, outdoor space, parking, broadband availability and proposed development in the area.
Information about local services, development and crime should be checked using current information from the relevant public authorities. Data may cover different periods and may not reflect every person’s experience of an area.
Visit the area at different times where practical and read more about what to consider before moving to a new area.
Search for homes
Property websites can help you compare homes by price, location, size, tenure and features. Local estate agents and housing providers may also know about homes that have not yet been advertised widely.
Filter your search using the features that matter most to you, such as maximum price, number of bedrooms, outdoor space, parking and distance from public transport.
Check whether each home is freehold, leasehold or available through Shared Ownership. The tenure can affect your legal rights, maintenance responsibilities and ongoing costs.
Attend viewings
Photographs and floor plans may not show noise, natural light, room proportions or the condition of the surrounding area.
During a viewing, consider:
- Room sizes, layout and storage.
- Natural light and ventilation.
- Visible signs of damp, leaks or cracking.
- The apparent condition of windows and heating systems.
- Noise from roads, neighbours or nearby businesses.
- Parking and communal areas.
- Energy performance information.
- The fixtures, fittings and appliances included.
A viewing is not a substitute for an independent survey.
For a leasehold or Shared Ownership home, ask about the lease, service and estate charges, buildings insurance, planned work and restrictions affecting the home.
Take notes during or immediately after the viewing. Ask permission before taking photographs inside an occupied home.
Make an offer on the open market
For an open-market purchase, you will normally make an offer through the estate agent.
You can offer above, below or at the asking price. Base your decision on your budget, the home’s condition, interest from other buyers and any work you believe may be required.
Do not offer more than you can comfortably afford. Confirm your offer and any conditions in writing.
An accepted offer is not normally legally binding in England until contracts are exchanged. Before exchange, either party can usually withdraw or seek to renegotiate. Costs already incurred may not be recoverable, and separate reservation terms may apply to some purchases.
Reserve a new-build or Shared Ownership home
The process may differ if you are buying a new-build or Shared Ownership home. You may need to complete an affordability assessment and reserve a specific home instead of making an offer through an estate agent.
Before paying a reservation fee, check:
- How much the fee is.
- How long the reservation period lasts.
- Whether the fee is deducted from the final payment.
- When the fee may or may not be refunded.
- The deadline for exchanging contracts.
- The expected completion arrangements.
- What happens if construction is delayed.
- Which fixtures, flooring and appliances are included.
- What warranty or cover comes with the home.
For many Shared Ownership homes, the provider will give you key information about the home, lease and expected costs before reservation. The documents supplied will depend on the home and Shared Ownership model.
Read the documents and reservation terms carefully. Ask the provider which information applies to your purchase and consider using a conveyancer with experience in new-build or Shared Ownership transactions.
Complete your purchase
Appoint a conveyancer
Once your offer is accepted or you reserve a home, appoint a solicitor or licensed conveyancer. This guide refers to the professional handling the legal work as your conveyancer from this point.
Your conveyancer will normally:
- Review the contract.
- Check the seller’s ownership.
- Arrange searches.
- Raise legal enquiries.
- Review leasehold information where relevant.
- Handle exchange and completion.
- Complete the required tax and registration work.
Compare quotations and check which fees and third-party costs are included.
Submit your mortgage application
You can submit your full mortgage application once your offer has been accepted or you have reserved a home.
The lender will assess your finances and normally arrange a mortgage valuation.
Changes to your borrowing, income, employment or financial commitments could affect your application. Tell your lender or mortgage adviser promptly if your circumstances change while the application is being assessed.
A lender’s valuation is carried out for the lender. It is not an independent survey of the home’s condition.
Consider an independent survey
An independent survey can help you understand the home’s condition before you commit to the purchase.
Different types of survey are available. The option that may be suitable will depend on the home’s age, construction and condition. A suitably qualified surveyor can explain the available inspections and what they cover.
Other inspections or specialist reports may be recommended. A survey cannot guarantee that every defect will be identified.
If a survey raises concerns, ask the surveyor and your conveyancer to explain the findings. Consider whether specialist advice or repair estimates are needed before deciding how you wish to proceed.
A seller is not required to accept a revised offer, and costs you have already incurred may not be recoverable.
Review searches and legal enquiries
Your conveyancer will normally arrange searches covering matters such as local-authority records, water, drainage and environmental risks.
Searches do not assess the physical condition of the building. That is the purpose of a survey or specialist inspection.
Read your conveyancer’s report and ask about anything you do not understand. This may include:
- Boundaries.
- Rights of way.
- Alterations.
- Planning and building-control records.
- Lease terms.
- Planned work.
- Fixtures and fittings included in the sale.
Check your mortgage offer
If your application is approved, the lender will issue a formal mortgage offer.
Check:
- The amount being lent.
- The interest rate.
- The monthly payments.
- The mortgage term.
- Product fees.
- Conditions attached to the mortgage.
- What happens after any initial fixed period.
- When the offer expires.
Speak to your lender or mortgage adviser if anything differs from what you expected or if you do not understand a condition.
Prepare to exchange contracts
Before exchange, check that:
- Your mortgage offer is in place.
- Your deposit is available.
- You have considered the survey and search findings.
- The agreed fixtures and fittings are recorded in writing.
- You understand the ongoing charges.
- The proposed completion date works for you.
Ask your conveyancer to explain whether you are responsible for arranging buildings insurance and when any cover must begin. Different arrangements may apply to leasehold and Shared Ownership homes.
Exchange contracts
Exchange of contracts is normally the point at which the buyer and seller become legally committed to complete the transaction on the agreed terms.
Your conveyancer should explain the contract and the consequences of exchange before asking for your authority to proceed.
An exchange deposit may be required. The amount and timing will depend on the transaction and what has been agreed.
The exchange deposit is not always the same as the deposit you are contributing towards your mortgage. Ask your conveyancer how much must be available and when it must be transferred.
Withdrawing after exchange can have serious financial and legal consequences.
Complete your purchase
Completion takes place when the purchase money is transferred and the transaction completes. Once completion is confirmed, the estate agent or sales team can normally release the keys.
Your conveyancer will deal with the remaining tax and registration work.
Arrange your insurance, utilities and moving plans in advance, but wait for confirmation that completion has taken place before moving into the home.
Plan for homeownership
The costs of owning a home continue after completion. Your monthly expenses may include:
- Mortgage repayments.
- Council Tax.
- Gas, electricity and water.
- Insurance.
- Repairs and maintenance.
- Service or estate charges.
- Rent on the share you do not own if you buy through Shared Ownership.
Create a household budget based on the full cost of living in the home rather than the mortgage payment alone.
If possible, keep some savings available for unexpected repairs and other essential costs.
Before making alterations, check whether you need permission. Depending on the home, this could include planning permission, building regulations approval, freeholder consent, approval under a Shared Ownership lease or permission from your mortgage lender.
Keep invoices, guarantees, certificates and approval documents for work carried out.
Consider Shared Ownership
Shared Ownership may provide another route to buying a home if you cannot afford a suitable property on the open market.
You buy a share of the home and pay rent to the housing provider on the share you do not own. You will usually need a mortgage for the share you buy.
You may also need to pay:
- A service charge.
- An estate charge.
- A management fee.
- Buildings insurance charges.
- Contributions towards future major work.
When assessing affordability, include your mortgage payment, rent, property-related charges and normal household bills. Some payments may change over time.
The mortgage deposit is generally calculated as a percentage of the share you buy, subject to the lender’s requirements and the terms of the purchase.
Depending on the lease and Shared Ownership model, you may be able to buy additional shares through a process known as staircasing. Fees, valuation requirements, restrictions and other costs may apply.
Shared Ownership leases, charges and purchasing arrangements vary. Read the key information, lease and personalised cost information supplied for the specific home. Consider asking your conveyancer and mortgage adviser to explain how the terms apply to you.
Learn how Shared Ownership works with Guinness Homes.
Frequently asked questions
How much deposit does a first-time buyer need?
The deposit required will depend on the lender, mortgage product, home and your circumstances. You will also need money for legal fees, surveys and other buying costs.
Is a mortgage valuation the same as a survey?
No. A mortgage valuation is carried out for the lender. An independent survey is arranged for you and can provide more information about the home’s condition.
Does a Mortgage in Principle guarantee a mortgage?
No. It is an initial indication based on limited information. The lender must still assess your full application, supporting documents and the home you want to buy.
When does buying a home become legally binding?
In England, the buyer and seller normally become legally committed when contracts are exchanged. Before exchange, an accepted offer is not usually legally binding, although costs already incurred may not be recoverable.
Take your first step
Buying your first home takes planning, and the right timescale will differ for everyone. Begin by working out what you can comfortably afford, including your deposit, buying costs and ongoing household expenses.
If buying a suitable home on the open market is beyond your current budget, Shared Ownership may offer another route. Eligibility, costs, availability and lease terms vary, so review the information supplied for the specific home before making your decision.
The information in this guide is general and does not constitute financial, legal, tax or surveying advice. Mortgage products, eligibility requirements, taxes, fees and Shared Ownership terms can change and will depend on your circumstances and the home you choose. Consider taking advice from appropriately authorised or qualified professionals before committing to a purchase.
Guinness Homes does not provide mortgage advice. If you need advice about mortgage products or affordability, speak to an appropriately authorised mortgage adviser.
Explore available Guinness Homes properties or learn how Shared Ownership works.
