Advertisement
The deposit
The deposit is your contribution. Most lenders require a minimum of 5% — 10% gets you better rates, 15–20% better still.
Minimum
5%
of purchase price
On £200,000
£10,000
at 5%
Better rates from
10%+
£20k on £200k home
LISA bonus
25%
free from govt per £1 saved
Lifetime ISA: Save up to £4,000/year. Government adds 25% — up to £1,000 free per year. Must be used for a first purchase under £450,000. Open before age 40. Buying with a partner? You can both open one.
Getting a mortgage
A mortgage covers the purchase price minus your deposit. You repay it — plus interest — over 25–35 years.
Get a mortgage in principle first. Before you view a single property. It confirms what you can borrow and makes your offer credible to sellers.
A mortgage in principle before viewing puts you ahead of other buyers — Photo by Unsplash
Upfront costs
Budget for these on top of your deposit.
Stamp duty
0–5%
First time buyers get relief up to £425k
Solicitor
£1,500–£2,500
Conveyancing and searches
Survey
£300–£1,500
Always get one
Mortgage fees
£0–£999
Varies by deal
Removals
£300–£1,500
Distance and volume dependent
Buildings insurance
Required
From exchange day
Stamp duty relief: First time buyers pay nothing on the first £425,000. Between £425,001–£625,000 you pay 5% on the portion above £425k. Above £625k, standard rates apply.
The buying process
1
Work out what you can afford
Mortgage calculator for monthly payments. Budget for all upfront costs above your deposit.
2
Get a mortgage in principle
From a broker or lender before you start viewing. Confirms your borrowing and strengthens any offer.
3
Find a property and make an offer
Via the estate agent. Not legally binding until exchange — either side can pull out before then.
4
Instruct a solicitor
Handles all legal work. Compare quotes — prices vary significantly.
5
Full mortgage application
The lender carries out a valuation and assesses your finances. This is their valuation — not your survey.
6
Get your own survey
Homebuyer survey (£400–£700) or full structural for older properties. Can save thousands by revealing problems early.
7
Exchange of contracts
Both sides sign. You pay the deposit (typically 10%). Sale is legally binding. Buildings insurance required from this point.
8
Completion — you get the keys
Funds transfer. Keys released by the estate agent. The property is yours.
Government schemes
Several schemes are targeted at new build purchases — Photo by Unsplash
Lifetime ISA
Save up to £4,000/year. Government adds 25%. Use for a first home under £450,000 or retirement. Open before 40.
Shared Ownership
Buy 25–75% of a property, pay rent on the rest. Lower deposit and mortgage needed. Check service charges carefully.
First Homes
New build homes at minimum 30% discount for eligible first time buyers and key workers. Discount stays with the property.
Mortgage Guarantee Scheme
Enables 5% deposit mortgages on homes up to £600,000. Available through participating lenders — check with a broker.
Before you make an offer
- Deposit saved and accessible
- Credit report checked — fix errors before applying
- On the electoral roll at your current address
- Mortgage in principle obtained
- Monthly budget calculated including all running costs
- Solicitor shortlisted and quotes compared
- Survey type decided
- Buildings insurance researched
- Stamp duty calculated
- Total upfront costs budgeted
General information only. Not financial or mortgage advice. Verify with a qualified mortgage adviser before making any decisions. Hall's Homes UK is not FCA regulated.
