First-time buyers

First-time buyers: from saving a deposit to collecting the keys. Every stage in order, what it costs, how long it usually takes, and where the schemes fit. General information, not a personal recommendation.

Q: Do first-time buyers pay stamp duty?

In England and Northern Ireland, not on the first £300,000; 5% from £300,001 to £500,000; above £500,000 standard rates apply to the whole price.

By Matt Nixon, Senior adviser · Cert MII · CeRER · DipFA · Updated October 2026

01 · The stages, in order

From first question to collecting the keys.

Buying your first home follows the same eight stages for almost everyone. From an offer being accepted to collecting the keys usually takes three to four months, most of it legal work.

Budget and credit file. Work out what you can borrow and check your credit file. Why we start there.
Agreement in principle. A lender’s initial indication of what it would lend, so your offers are taken seriously.
Find a home and make an offer.
Full mortgage application. The lender checks your documents and values the property.
Solicitor or conveyancer. They carry out searches and handle the legal work, often 12 to 16 weeks.
Mortgage offer. The lender confirms the loan in writing. Offers are commonly valid for around six months.
Exchange of contracts. You pay the deposit and are legally committed to buy.
Completion. The money moves and you collect the keys.

02 · Costs beyond the deposit

Costs beyond the deposit.

Cost	When you pay it	Worth knowing
Deposit	On exchange of contracts	At least 5% of the price, more for better rates
Stamp duty	Through your solicitor, on completion	Many first-time buyers pay little or none — see below
Legal fees and searches	Mostly on completion	Get a written quote that includes searches and disbursements
Survey	Before exchange	Optional, but recommended for older homes
Mortgage fees	On application or added to the loan	Compare the total cost, not just the rate
Moving and setting up	Around completion	Removals, furniture, and buildings insurance from exchange

03 · Stamp duty

Stamp duty for first-time buyers.

In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000. Above £500,000 the relief does not apply and standard rates are paid on the whole price. Scotland and Wales have their own taxes and thresholds.

Price	First-time buyer stamp duty
£250,000	£0
£300,000	£0
£350,000	£2,500
£450,000	£7,500
£550,000	£17,500 — relief does not apply above £500,000

04 · Help with the deposit

Help with the deposit.

Lifetime ISA

You can save up to £4,000 a year and the government adds a 25% bonus, up to £1,000 a year. To use it for your first home, the property must cost £450,000 or less, you must buy at least 12 months after your first payment in, and the money is paid to your solicitor or conveyancer. Withdrawing for any other reason before 60 usually means a 25% charge, which takes back more than the bonus. You must open one before you turn 40. The government has announced plans to replace it with a new first-time buyer ISA, expected from 2028; existing accounts can continue.

5% deposit mortgages

The government’s Mortgage Guarantee Scheme, permanent since July 2025, supports 91–95% mortgages through participating lenders.

A gift from family

Many lenders accept a deposit gifted by family. They will want a signed letter confirming it is a gift, not a loan, plus identification and evidence of where the money came from.

05 · What lenders need

What lenders need from you.

Identity: Passport or driving licence, and proof of address.
Income: Usually three months of payslips and your latest P60. Self-employed: tax calculations and accounts.
Bank statements: Usually the last three months.
Deposit: Evidence of where it has come from — savings, a Lifetime ISA or a gift.
Credit file: Ideally checked before anything is submitted.

06 · Valuations and surveys

Valuations and surveys.

The lender’s valuation is for the lender: it confirms the property is worth what is being lent against it. It is not a survey and will not tell you about the condition of the home.

A survey is for you. A basic condition report suits newer homes in good order; a more detailed survey is worth considering for older or larger properties, or where you plan to do work.

07 · Mistakes to avoid

Mistakes to avoid.

Taking new credit during the process — including car finance or a new phone contract.
Changing jobs without telling us — lenders often recheck before completion.
Unexplained money in or out — large deposits need a clear source.
Budgeting for the deposit alone — the costs above add up.
Leaving the credit file until last — problems found early are easy to deal with.

Once you exchange contracts you are committed to buy, which is also the point to have buildings insurance in place and to think about how the mortgage would be paid if your income stopped. Our protection guide explains the options.

08 · Quick answers

How long does it take to buy a first home?

From an offer being accepted to completion usually takes three to four months, most of it the legal work. Having your documents and credit file ready before you offer shortens the mortgage side.

Do first-time buyers pay stamp duty?

In England and Northern Ireland, not on the first £300,000. You pay 5% on the part from £300,001 to £500,000, and above £500,000 standard rates apply to the whole price.

Can I buy with a 5% deposit?

Yes. 95% mortgages are available, supported by the government’s permanent Mortgage Guarantee Scheme. A larger deposit usually brings a lower rate.

09 · Sources

Sources and further reading.

Correct as at October 2026. Lender criteria, rates and rules change; this is general information, not a personal recommendation.

Your first home, one step at a time.

Tell us where you are — saving, looking or ready to offer — and we will set out the next steps and what you need.

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