First-time buyer guide: deposits, schemes and getting the keys
Buying your first home can feel like a mountain — the deposit, the jargon, the schemes that come and go. But thousands of people do it every month, and it’s far more manageable once you break it into steps. Here’s the plain-English route from “I’d like to buy one day” to picking up the keys.
This is information, not financial advice. It explains the options for first-time buyers in the UK. A mortgage broker can recommend what suits you.
Step 1: the deposit (and the free top-up)
The deposit is usually the biggest hurdle. As a rule of thumb, you’ll want at least 5–10% of the property price — and the more you can put down, the cheaper the mortgage rates you can access.
The single best tool for most first-time savers is the Lifetime ISA (LISA):
- Save up to £4,000 a year (it counts within your £20,000 ISA allowance).
- The government adds a 25% bonus — up to £1,000 a year free.
- Use it towards a first home worth up to £450,000.
- Two catches: you must be 18–39 to open one, you must have held it for at least 12 months before buying, and taking money out for anything other than a first home or age 60 brings a 25% withdrawal charge (which can leave you with less than you put in). So open one early, even with a small amount, to start the clock.
Step 2: the schemes that still exist
Help to Buy has ended, but several routes remain — worth knowing which fit you:
- Shared Ownership. Buy a share of a home (often 25–75%) and pay rent on the rest, with a smaller deposit and mortgage. You can usually buy more shares later (“staircasing”).
- Mortgage guarantee scheme. A government-backed scheme that encourages lenders to offer 95% mortgages (5% deposit), widening the deals available to smaller-deposit buyers.
- First Homes and various local/regional schemes offer discounts to first-time buyers, key workers or local people in some areas — check what’s available where you’re buying.
- Stamp duty relief (see below) means many first-time buyers pay no stamp duty at all.
Which is right depends on your deposit, income and area — a broker can point you to the schemes you actually qualify for.
Step 3: stamp duty — often £0 for you
First-time buyers get a stamp duty break in England and Northern Ireland: you pay nothing up to £300,000, and a reduced rate on the portion from £300,001 to £500,000. Buy above £500,000 and normal rates apply. (Scotland and Wales run their own systems.) For most first homes, that’s a meaningful chunk of cost removed — see our stamp duty guide for the detail.
Step 4: get mortgage-ready
Before you fall in love with a flat, get your finances lined up:
- Check your credit file and fix any errors (see our credit scores guide) — lenders look closely.
- Get an agreement in principle — a lender’s rough indication of what you can borrow. It focuses your search and reassures sellers.
- Budget for the extras beyond the deposit: solicitor/conveyancer fees, a survey, mortgage fees, and moving costs. These add up to a few thousand pounds, so don’t spend your last penny on the deposit.
Step 5: the buying process (briefly)
Once an offer’s accepted: you instruct a conveyancer (the legal side), the lender does a valuation, you arrange a survey, contracts are exchanged (the point it becomes binding), and finally you complete — and get the keys. It typically takes a couple of months, and a good broker and conveyancer make it far smoother.
The three things that move the needle
Everything above boils down to: save into a LISA to grab the free bonus, build the biggest deposit you can to unlock better rates, and get mortgage-ready early so you can move quickly when you find the right place. Do those, and the mountain turns into a staircase.
Last checked 31 July 2026. Scheme details and eligibility change — check the current rules before relying on any one route.
Sources
Just so you know: this guide is information and journalism, not financial advice, and we don't recommend specific financial products. Your circumstances are your own — if you need personal advice, speak to a suitably qualified adviser. Information was correct at the "last updated" date above but things change; always check the linked primary sources.