The top challenges for first-time buyers
I still remember the moment my then-fiancé (now husband) and I got the keys to our first home. I was 22, absolutely terrified and unbelievably excited all at once. We’d bought a doer-upper, the kind of house that estate agents describe as having ‘enormous potential’, and I genuinely had no idea what I’d let myself in for. Not just with the renovation, but with the entire process of buying a property in the first place.
If you’re about to buy your first home, I want to give you the guide I wish I’d had. There are lots of confusing aspects, particularly if you haven’t done this before (and even if you have, it’s still a minefield!).
Here’s a table of contents, as this guide has got a little lengthy:
- Working out what you can afford
- Saving for your deposit
- Understanding the hidden costs
- Going through the mortgage process
- Finding the right property
- Making an offer and negotiating a price
- Managing the legal process
- Letting the emotional pressure get to you
- Final tips and advice
1. Working out what you can actually afford
Before you start falling in love with properties on Rightmove (believe me, I know it’s tempting, but contain yourself), you need a clear, honest picture of what you can realistically afford. And realistically is the key word here. Like, ‘What happens when the boiler packs in three months after we move in’ realistic.
Most lenders in the UK will offer you somewhere between 4 and 4.5 times your annual salary, though some will go higher depending on your circumstances. To get a mortgage at all, you’ll typically need a minimum deposit of 5% of the purchase price.
For an average first-time buyer property, which according to Halifax stood at £311,034 in 2024, that means finding at least £15,500, and realistically much more if you want access to better mortgage rates.
The bigger your deposit, the lower your Loan-to-Value (LTV) ratio (that’s the percentage of the property’s value you’re borrowing). A lower LTV generally means better interest rates and lower monthly repayments, so it really is worth saving as much as you can before you buy.
One thing worth doing early is getting a Mortgage in Principle (sometimes called an Agreement in Principle or AIP). This is a lender’s provisional confirmation of how much they’d be willing to lend you based on a basic review of your finances. It won’t affect your credit score if the lender does a soft search, and it gives you a clear idea of your budget. Plus it shows estate agents you’re a serious buyer.
The challenges first-time buyers face the most is being able to save such a large deposit, passing these mortgage affordability checks, and managing the monthly repayments alongside all of your other expenses (council tax, bills, cars, mobile phones, your never-ending list of online subscriptions, etc).
2. Saving for your deposit
Saving for a deposit is genuinely one of the hardest parts, especially when you’re also paying rent. We were both living with our parents while we saved to buy our house, so at least that massively reduced our outgoings while saving up).
According to Halifax, the average first-time buyer deposit in 2024 was £61,090. This is around 20% of the purchase price. That’s a lot of money to find while also living your life.
The good news is there’s real help available. The Lifetime ISA (LISA) is one of the best tools going for first-time buyers. You can save up to £4,000 a year into a LISA, and the government tops it up with a 25% bonus (up to £1,000 per year). The catch is you can only use it to buy your first home or for retirement, and the property must cost £450,000 or less. Start one as early as you can, because the bonus adds up over time.
There are also government schemes worth knowing about. The Mortgage Guarantee Scheme lets you buy with just a 5% deposit, with the government backing mortgages up to £600,000. This is useful if you’re struggling to save a bigger sum while renting.
The First Homes Scheme offers new-build properties at a minimum 30% discount for eligible local first-time buyers and key workers.
Shared Ownership is another route, where you buy a share of a property (usually between 10% and 75%) and pay rent on the rest, gradually increasing your stake over time.
These schemes aren’t necessarily right for everyone, but they’re worth exploring before you rule them out completely.
3. Understanding the hidden costs
When you’re buying a home, the purchase price is just the beginning. On top of your deposit, you need to budget for a whole load of other costs.
Stamp Duty Land Tax (SDLT)
This is a big one to understand, especially since the rules changed significantly in April 2025. As a first-time buyer in England, you now pay no stamp duty on properties up to £300,000 (it used to be £425,000, so this is a notable change).
On properties between £300,001 and £500,000, you’ll pay 5% on the portion above £300,000. If your property costs more than £500,000, you lose the first-time buyer relief altogether and pay standard rates. So on a £400,000 property, for example, you’d pay £5,000 in stamp duty.
Conveyancing and legal fees
You’ll need a solicitor or licensed conveyancer to handle the legal side of buying your home. Expect to pay anywhere from £1,000 to £3,000, and be aware that this figure doesn’t always include disbursements. There are extra costs on top for things like local authority searches, Land Registry fees, and anti-money-laundering checks.
Survey costs
Please, please don’t skip the survey. This is one area where first-time buyers, especially those buying older or period properties, are sometimes tempted to cut corners, and it can be an expensive mistake.
There are different levels of survey. A basic RICS Level 1 Home Survey typically costs £300 to £900 and covers visible defects and condition ratings. A more detailed Level 2 (Homebuyer Report) or Level 3 (full structural survey) will cost £500 to £1,500 but gives you a much more thorough picture of the property’s condition.
I wouldn’t really recommend ever getting the basic survey, as it just doesn’t provide enough information, and you might end up buying a house that has serious issues.
When we bought our doer-upper, we went for the mid-range survey and even that didn’t show us just how bad the electrics were, or that we’d have to rewire the entire downstairs.
Other costs to budget for
- Mortgage arrangement fees: Can be up to £1,500, though fee-free deals exist
- Mortgage valuation (charged by the lender): Around £100 to £300
- Removal costs: Typically £450 to £1,400 depending on how much stuff you’ve accumulated
- Home Buyers’ Protection Insurance: From around £74, but it’s worth having in case your purchase falls through, which happens to roughly one in three buyers
- Furnishing and decorating: Often underestimated, especially if you’re moving into a house that needs work
A HomeOwners Alliance survey found that 63% of buyers aged 18 to 34 regretted something about their purchase, with the most common regret being underestimating costs. Don’t let that be you.
4. Going through the mortgage process
Applying for a mortgage is one of the most daunting parts of buying your first home, mainly because there’s so much choice and so much jargon. That’s why I’m here to mythbust some things that generally aren’t understood by first-time buyers (or you can read my guide on mortgages for first-time buyers).
Before you apply, lenders will look at your credit history, income stability, and spending habits. It’s worth checking your credit report beforehand (you can do this for free through services like Experian, Equifax, or ClearScore) and sorting out any issues before you apply. Even little things, like being on the electoral roll, can make a difference.
When it comes to the type of mortgage, the main choice is between fixed-rate and variable-rate. A fixed-rate mortgage locks your interest rate in for a set period (usually two or five years), meaning your repayments stay the same regardless of what happens to the Bank of England base rate. It’s the most popular option in the UK because it offers certainty and stability. A tracker mortgage follows the Bank of England base rate, meaning your payments could go up or down month to month. It can work in your favour if rates fall, but it’s a bit of a gamble.
Genuinely, please get independent mortgage advice. A good mortgage broker will search the whole market on your behalf and could save you thousands over the lifetime of your mortgage.
5. Finding the right property
This is where it gets exciting, and where it can also get stressful (sorry). The UK property market is competitive in many areas, and as a first-time buyer it can feel like everyone else knows what they’re doing more than you do. Believe me, they don’t. They’re all just as stressed.
The key is to be clear on your non-negotiables versus your nice-to-haves before you start viewing. Location is the one thing you can’t change, so think carefully about commuting routes, proximity to schools if that’s relevant, local amenities, and transport links. Everything else, like the decor, kitchen, even some structural issues, can be changed over time.
It’s also worth understanding the difference between freehold and leasehold properties. A freehold means you own the property and the land it sits on outright. A leasehold (common with flats) means you own the property for a set number of years but not the land, and you’ll likely pay ground rent and service charges to the freeholder. Always check how many years are left on a lease; anything under 80 years can cause problems when it comes to remortgaging or selling.
Take your time viewing properties and try not to make decisions based on panic or pressure from agents. If you’ve found somewhere you love, it’s fine to move quickly but always do so with a clear head and within your budget.
6. Making an offer and negotiating a price
Once you’ve found your property, it’s time to make an offer. This can be really nerve-wracking, especially if you’ve found a home you really love and don’t want to have your offer rejected. The golden rule is to always know your absolute limit before you start, and to stick to it.
Do some research on comparable properties in the area before you make an offer. The estate agent works for the seller, not you, so their job is to get the best price they can. That doesn’t mean they’ll lie to you, but do be aware that lines like ‘we’ve had several other offers’ are sometimes used to create a false sense of urgency. A proper RICS valuation or survey can give you independent evidence to back up a lower offer.
The process of negotiating a home purchase can be unfamiliar territory, but it’s not just about price. You can also negotiate on what’s included, whether the seller leaves white goods, garden furniture, or light fittings, for example. Completion dates matter too, especially if either party is in a chain.
And remember: in England and Wales, offers aren’t legally binding until contracts are exchanged. Either party can pull out before that point, which brings me neatly on to…
7. Managing the legal process
The legal side of buying a property, generally known as conveyancing, is the part that tests your patience the most. On average, buying a house takes around five months from when your offer is accepted to completion, though it can be quicker if you’re buying a chain-free property (one where the seller isn’t also buying somewhere else at the same time).
Your solicitor will carry out various searches on the property, checking things like flood risk, local planning applications, and drainage. They’ll review the draft contracts sent by the seller’s solicitor, flag any issues, and raise queries. This is when you might find out about things like ongoing disputes over boundaries, restrictive covenants on what you can do with the property, or upcoming local development plans.
Once both sides are happy and your mortgage offer is in place, contracts are exchanged. This is the point at which the sale becomes legally binding and you’ll normally pay your deposit (usually 10% of the purchase price, though it can be your full deposit if it’s less than 10%). A completion date is then set when the remaining funds are transferred and you get the keys.
The whole thing can feel maddeningly slow, especially when you’re sitting waiting to hear back from solicitors.
My biggest piece of advice (and if you only take one thing away from this whole article, let it be this) is consistently chase up with your solicitors. If you don’t, your stuff is deemed non-priority and you’ll be left at the bottom of the pile for weeks. When we bought our second house, I remember being on the phone to the solicitors at least two or three times a week to chase things up, see what we were waiting on. If I hadn’t done that, we’d still be waiting.
Yes, they probably find it annoying, but honestly it’ll get you out of their hair faster.
8. Letting the emotional pressure get to you
Nobody really talks about how emotionally exhausting the process is, and they should, because it can be a lot.
There’s the excitement, the anxiety, the fear of missing out when a property you loved goes to someone else, the worry about whether you’re making the right decision, and the sheer stress of juggling solicitors, mortgage brokers, surveyors, and estate agents all at once.
One thing that helped me enormously was having a clear sense of what we actually needed from a home versus what we wanted. When you’re emotionally caught up in a viewing, it’s easy to overlook serious issues or talk yourself into spending more than you should. Making a list of genuine requirements, like the number of bedrooms, location, parking, outdoor space, before you start viewing gives you something to come back to when your heart starts overruling your head.
It’s also worth remembering that your first home doesn’t have to be your forever home. Plenty of people buy something smaller or in a less desirable area first, build up equity, and move on a few years later. If you’re young and buying alone or as a couple, giving yourself permission to start smaller can take an enormous amount of pressure off.
9. A few final tips
- Get your finances in order early. Check your credit score, clear any unnecessary debt, and avoid big purchases or job changes in the months before you apply for a mortgage.
- Use a mortgage broker. They can access deals you won’t find directly and they’ll do the legwork of comparing the market for you (though factor in their cost into your budget).
- Build a buffer. Try to keep some savings back after the purchase for unexpected repairs. Most homeowners face something in the first year.
- Shop around for your conveyancer. Fees vary enormously so get at least three quotes and make sure they’re offering a fixed fee so there are no nasty surprises.
- Enjoy it. Genuinely. Buying your first home is a massive milestone and yes, it’s stressful but it’s also brilliant. There will never be another moment quite like getting those keys for the very first time.
Buying your first home is genuinely one of the most complex, expensive, and significant things you’ll ever do. But it’s also completely manageable when you go in with the right information and realistic expectations.
Our doer-upper was a lot of work, a fair amount of chaos, and one of the best things we ever did. Yours might be move-in ready or it might need every room gutted. Either way, it’s yours and that feeling doesn’t get old.
Got questions about the home-buying process? Drop them in the comments — I love hearing from readers who are on their own first-home journey.
For now, I’m gonna collapse in a heap on the sofa cause that was a lengthy guide!
