Getting onto the property ladder, one cannot be left aside when it comes to wonderment. For most people, owning their own home seems like a dream they will always have to chase—especially in cities like London, where house prices feel completely out of reach.
But here’s the good news: as long as you take the steps and find support, it is possible to buy your very first home. Whether you’re just saving for it or poised to start booking viewings, knowing what to expect does make all the difference.
-
Work Out What You Can Afford
Before anything else, it is imperative to know the budget. Most lenders will let you borrow around 4 to 4.5 times your annual salary, and as long as one has a deposit saved to be made.
For example, if you earn £40,000, you could borrow up to £180,000. Add in a deposit of 5–10%, and you’ll have a realistic idea of the price range to target.
Use a mortgage affordability calculator such as that from MoneyHelper to help work this out.
read also: Stamp duty calculator
-
Know all about Stamp Duty Rules
As an initial purchaser, you may be eligible for some concession on stamp duty. As for now, no stamp duty will be required on properties valued at up to £425,000 until 1 April 2025 from which date only 5% will be levied on the value of the house priced between £425,000 and £625,000.
This zero-tax threshold will narrow to £300,000 after April 2025, making it better off if you relocate sooner rather than later.
You can get the expected amount of tax from the official GOV.UK Stamp Duty Calculator.
-
Public Assistance and Help Scheme
It’s tough getting on the ladder; at least that’s what it is, and there are many government schemes to bridge the way:
- Shared Ownership: Buy a percentage of a property—25% to 75%- rent the remaining. Increase your ownership bit by bit as time goes on.
- First Homes Scheme: Offers new build properties where first-time buyers and key workers are offered discounts between 30% and 50% off the market value.
- Deposit Unlock: purchase new-build properties using just a 5% deposit. Developers share some of the risk, usually enabling lower mortgage rates.
- Own a new rate reducer for lower mortgage rates on buying a new-build property.
Particularly if you are struggling to accumulate a deposit or to let a standard mortgage be your guide, these are most relevant and handy.
Shared Ownership information – UK Gov
-
Start Saving for Your Deposit
Although some lenders offer 95% mortgages, aspire to even more: 10% if possible. It can unlock better mortgage deals and lower your payments each month.
Consider paying for things like:
- Surveys
- Solicitor’s fees
- Mortgage arrangement fees
- Moving costs
💡 Tip: If you are aged 18–39, open a Lifetime ISA (LISA). You can save up to £4,000 a year and get a 25% government cash bonus—up to £1,000 of free money each year.
Read also: Lifetime ISA explained – MoneySavingExpert
-
Get Yourself a Mortgage Agreement in Principle
Save your deposit and speak with the lender or mortgage broker to obtain an Agreement in Principle (AIP). This gives you a clearer understanding of the available amount to borrow and communicates to estate agents and sellers that you are a real buyer.
Lenders will consider the following:
- Your income and employment history
- Credit score
- Outgoings and debts
- Check that your credit file is accurate and do not take on any new debt before applying.
-
Commence Your Property Search
The exciting part is upon us! Browse within your budget on platforms such as Rightmove or Zoopla, and then go ahead to pursue some nearby areas—you just might find a more valuable home in the next postcode.
Draft a list of must-haves (e.g., number of bedrooms, access to transport, outside space), but be flexible. Sometimes the perfect house doesn’t check all the boxes—but it feels perfect.
-
Make an Offer and Line Up Your Solicitor
When you find the right property, however, be bold in your negotiations. Check what similar properties have sold for, and should the price not be right, be prepared to walk away.
Once your offer is accepted, you will require the services of a solicitor or conveyancer to handle the legal side of things. They will sort:
- Searches
- Contracts
- Transfer of Ownership
- Exchange and Completion
Make sure to choose someone with experience in residential purchases, and local knowledge is always a positive.
-
Have the Survey Done and Boilerplate the Mortgage Application
A survey serves to ensure that the property is structurally sound. There may be issues that would not be visible, such as dampness, faulty wiring, or damage to the roof. Depending on its condition, you might want to renegotiate the price or possibly ask the seller to do some repairs.
While these things are going on, you will also proceed from the AIP stage to the full mortgage application. The lender will do its own valuation and, subject to confirming an offer,.
-
Exchange Contracts and Complete
When all paperwork, searches, and mortgage approvals have been done, contracts are exchanged, and a deposit of 10 percent is paid. The purchase is now made binding by law.
And on completion day, your solicitor will transfer the rest of the money while you receive keys to your new home. Congratulations! You made it.
-
Move In and Settle Down
Set up utilities, redirect your post, and change the address with banks or official services. But do take a moment or two to breathe it in. Renovations are planned, pictures are hung; you have finally made it onto the ladder.
And, of course–the cringe, look-at-me-first-key photo.
Key Takeaways
1. Stamp duty is waived for first-time buyers (until April 2025).
2. Government schemes such as Shared Ownership and Deposit Unlock help to ease the purchasing process.
3. A healthy deposit can help secure a better mortgage deal, but usually an average of 5% is enough to get going.
4. Buying property becomes easier with a very clear step-by-step guide-it breaks down the whole process into one action at a time.
Conclusion:
How to get on the property ladder is much more than savings and interest rates-it’s about building a future. With the right planning and support, it can turn daunting to doable in buying the first home. Keep your eye on the prize; take each step at your own pace because that dream home is closer than you think.
When you are ready to start, explore trusted tools, speak with a mortgage adviser, and start browsing for your future home today.
