Buying your first home is properly stressful, isn't it? Everyone's got opinions, the process seems mental, and half the time you don't know if you're being ripped off or not.
I've helped loads of first-time buyers over the years, and the good news is it's not as complicated as it seems. The bad news? House prices are still ridiculous. But hey, we work with what we've got.
First Things First: Can You Actually Afford It?
Before you start browsing Rightmove at 2am (we've all been there), you need to know what you can actually afford. And I don't mean what the bank says you can borrow - I mean what you can actually live with.
Quick reality check:
- Mortgage payments shouldn't be more than 30% of your take-home pay
- You need at least 5% deposit (10% is much better)
- Keep £5,000-£10,000 back for all the extra costs
- Don't forget about council tax, insurance, and maintenance
I know someone who borrowed the maximum amount and ended up eating beans for six months. Don't be that person.
The Deposit Situation
Let's talk about the elephant in the room. You need a deposit, and it's probably going to take you ages to save it unless your parents are loaded.
Here's the breakdown:
- 5% deposit: Minimum for most mortgages, but you'll pay higher rates
- 10% deposit: Much better rates, worth the extra saving
- 15% deposit: Even better rates, getting into "good deal" territory
- 20% deposit: Best rates, but let's be realistic here
If you're struggling to save, look into Help to Buy ISAs or Lifetime ISAs. The government will top up your savings by 25% - it's free money, so definitely worth it.
ISA Hack:
If you've got a Help to Buy ISA, you can only use it on properties under £250,000 (£450,000 in London). But you can transfer to a Lifetime ISA instead, which works on any property up to £450,000 anywhere in the UK.
First-Time Buyer Perks (Actually Good Ones)
Being a first-time buyer isn't all doom and gloom. You get some proper good deals:
Stamp Duty Relief
This is massive. You pay no stamp duty on properties up to £425,000. On a £400,000 house, that saves you £15,000. That's not pocket change.
First-Time Buyer Mortgages
Most lenders have special deals for first-time buyers. The rates are usually better, and they're more flexible on deposits.
Shared Ownership
If you can't afford the whole house, you can buy a share (usually 25-75%) and pay rent on the rest. It's not perfect, but it gets you on the ladder.
Types of Mortgages (Don't Overthink This)
There are basically two types you need to care about:
Fixed Rate
Your payments stay the same for 2-5 years. Good if you like knowing exactly what you're paying. Most first-time buyers go for this.
Variable Rate
Your payments can go up or down. Usually starts cheaper than fixed, but you're gambling on rates not going up. I wouldn't recommend it right now.
Ignore all the other fancy options - trackers, offset mortgages, etc. You can worry about those when you're remortgaging.
The Buying Process (It's A Right Pain)
Here's what actually happens when you buy a house:
- Get a Decision in Principle (DIP): Takes 30 minutes online, shows you're serious
- Find a house: The fun bit that becomes addictive
- Make an offer: Don't be silly with your first offer, but don't lowball either
- Mortgage application: This is where the real work starts
- Survey: Get the house checked out properly
- Legal stuff: Your solicitor handles this (hopefully)
- Exchange contracts: Point of no return
- Complete: You get the keys!
The whole thing takes 8-12 weeks if nothing goes wrong. Something always goes wrong.
Hidden Costs (They Add Up Quick)
Everyone focuses on the deposit, but there's loads of other stuff you need to pay for:
- Solicitor fees: £1,000-£2,000
- Survey: £300-£1,500 (don't skip this)
- Mortgage arrangement fee: £0-£2,000
- Valuation: Usually free, but sometimes £300
- Removal costs: £500-£1,500
- Buildings insurance: £200-£500 per year
- Life insurance: £20-£50 per month
Budget at least £3,000 for all the extras, probably more like £5,000.
Common First-Time Buyer Mistakes
I've seen people make these mistakes loads of times:
- Buying at the top of their budget: Leave some wiggle room
- Skipping the survey: £500 survey vs £20,000 roof repair - you do the maths
- Not getting life insurance: If you die, your partner still owes the mortgage
- Forgetting about ongoing costs: Boiler repairs, council tax, etc.
- Buying in the wrong area: Check school catchments, transport links, noise levels
Should You Use a Mortgage Broker?
Depends on your situation. If you're employed, have good credit, and a decent deposit, you can probably go direct to a lender and save the broker fee.
But if you're self-employed, have dodgy credit, or your situation is complicated, a broker is worth every penny. They know which lenders are flexible and will do all the paperwork for you.
Final Advice
Don't rush it. I know everyone's telling you to "get on the ladder" and house prices are going up, but buying the wrong house is worse than not buying at all.
Make sure you actually like the area. Drive around at different times of day. Check out the local amenities. You're going to be living there for years.
And remember - your first house doesn't have to be your forever house. It just needs to be better than renting and somewhere you can be happy for a few years.
The best time to buy a house was 20 years ago. The second best time is now (if you can afford it).