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UK First Time Buyer
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First Time Buyers Guide

Start With a Budget

What can you afford?

To begin with you need to work out how much of your own money is available for the buy, and you need to find out how much you can borrow. By combining these figures, you will be able to determine the price range of your new home.


Following this you must then consider whether you can afford the running costs of your future new home. These costs include:

    • Council tax
      Ground rent if the property is leasehold
      Management company fees if the property is a leasehold flat
      Utility costs and their availabilities
      Home insurance costs

    Additional costs

    There are a number of additional costs and fees associated with home buying that you also have to consider. These include:

    • Solicitor’s fees
      Survey and valuation fees
      Stamp Duty Land Tax, which is payable on properties valued at £125,000 and over.This will be at least 1%.
      Mortgage broker fees. (There is no fee for using our mortgage search- get free quote now)
      Costs of repair work required on the property. You may also be able to negotiate a reduction in price in this instance.
      A Home Information Pack (HIP) must be provided on some properties. In this instance the seller has to pay for local authority searches.
      Costs associate with moving home, such as final bill payments, removals, storage, etc.


    What Type of Property is it?

    Freehold Property

    This means that the land on which the property is built is also included in the sale. Therefore as well as owning the property, you will also be the land owner.


    Leashold Property

    This means that the land on which the property is built is not included in the sale. Consequently you are obliged to pay ground rent to the freeholder i.e. the owner of the land.


    You must check to see if the length remaining on the leasehold is suitable to your mortgage lender.


    With flats, there is usually an annual management company service charge. This fee covers maintenance and cleaning of common areas and grounds, services for security features and compliance with safety requirements, as well as repairs to the building and building insurance.


    In these leasehold flats, the homeowners can be offered the right to jointly buy the freehold of the building and assume responsibility for the management themselves.


    Commonhold Property

    Commonhold property belongs to flat owners of a particular building that have jointly bought the freehold of the building. The flat owners manage any maintenance or repairs required themselves. They can decide whether to collect a monthly/annual payment to pay for the upkeep of the building, or to simply jointly pay as and when required.



    Make Your Offer

    An oral offer isn’t legally binding, and you can make as many offers on a property as you wish. This means that if you feel a property has been over-priced, then you have the right to make an offer that is lower than the asking price. Equally, if you have made an offer that has been rejected by the owners, you also have the right to make an increased offer.



    What Next

    Arranging your Mortgage

    Applying for a mortgage through Mortgage Fox is quick and simple. All you have to do is fill out our application form and you will receive a free no-obligation, tailor-made quote from the most suitable lender.



    Once a mortgage has been agreed, the lender will ask that your chosen property be valued independently. You will have to incur the surveyor’s fees. This valuation is to ensure that the value of the home covers the value of the mortgage in the event that you are unable to keep-up with your mortgage payments.


    You may also incur a higher lending charge if you borrow more than 75-80% of the value of the property. This comes in the form of a single premium payment to the lender.



    Buying Together

    When buying with a partner, friends or family, all parties involved become joint legal owners of the property. You can get an estimate of how much you can borrow using a joint income with our mortgage calculator.



    Exchange of Contracts and Completion

    The Final Contract

    This is prepared once the surveyor’s report has been concluded and a completion date has been set. You and your solicitor should be satisfied with the deal, and you should have received a formal mortgage offer from your lender. The contract is between you and the seller and it is legally binding once singed. Should you choose to back-out once the contract has been signed, you will lose your deposit entirely.



    The money will be released from the mortgage lender on the decided completion date. The deeds will also be handed to your solicitor on this date. The completion usually occurs a month after the exchange of contracts, and your new home is now officially yours.



    Value of Property  
    (eg 135000) 
    Value of Mortgage
    (eg 85000) 
    Type of Mortgage

    Need to ask a question?

    Getting the right advice could save you up to £10,000 on your first mortgage.

    As a first time buyer you need a mortgage tailored to your specific needs, maybe with a custom rate based on your circumstances.


    We will be happy to answer any Mortgage questions you may want to ask, and we will also be glad to help you find a better quote through our network of independent brokers. This service is completely FREE and you are under no obligation.

    *There is no obligation with either of these services, and both are offered completely free.