A guide to buying your first home

Buying your first home can feel both exciting and daunting. Lloyds first-time buyers’ guide helps break down the process so you can start your journey. 

Key takeaways

  • There are many stages to the home buying process, from finding that dream home to signing and exchanging contracts. 
  • A bigger deposit can help bring down your mortgage payments, so try to save as much as possible.
  • There’s help to get first-time buyers on the property ladder.

In this guide

Work out what you could afford

Apply for an Agreement in Principle

Find the right home

Get your offer

Get ready to complete

Work out what you could afford

Your deposit

You’ll usually need a mortgage deposit when buying your first home. This might be built up over time with your savings, or you might get help from family with a gifted deposit. Either way, it’s a good idea to start saving as soon as you can. 

You could also see if there are any government-backed schemes or mortgage products that could help you take the first step on the ladder. For example, you might be able to buy a home with a £5k mortgage deposit or make the most of our First-Time Buyer Boost mortgage. 

The larger deposit you save, the less you’ll need to borrow from the bank. This could even mean you’re offered a better mortgage deal. 

How to save for a deposit Opens in same tab

Your budget

The Lloyds first-time buyer calculator can help you work out what you could borrow based on your mortgage deposit and current finances. This could give you an idea of the properties you can afford and what your monthly repayments might be.

Just enter your income and monthly outgoings to build a clearer view of your budget.

First-time buyer calculator Opens in same tab

Other costs

Buying your first home involves more than just a deposit and mortgage repayments. You’ll also need to factor in other upfront costs and monthly running costs.

For example, legal fees, survey costs and moving costs, as well as your home insurance and monthly bills. Don’t forget to budget for these when you’re doing your sums.

First-time buyer costs Opens in same tab

Apply for an Agreement in Principle

You could lose your home if you don’t keep up your mortgage repayments

Find the right home

Joining our first-time buyer help sessions could be a great start when buying your first home. Lloyds offers expert-led sessions providing first-time buyer guidance to help you understand the process and make informed decisions. Find a first-time buyer event.

Start your search

Once you have an idea of your budget and an Agreement in Principle (AIP) in place, you can begin looking for a property. This is an exciting step in buying your first home. Location, transport links and local amenities can all influence your decision.

Estate agents may ask to see your Agreement in Principle (AIP) before arranging viewings or accepting offers. It’s also worth researching the area and comparing properties carefully. You can use the Lloyds neighbourhood guide to create a property checklist that suits your ideal home.

Make an offer

Once you’ve found the right property, the next step is making an offer. This usually means offering a price through your estate agent, who will present it to the seller.

Your offer may be accepted, rejected or negotiated. Factors like local demand, property condition and your financial position can all play a part.

Remember that having an Agreement in Principle (AIP) in place can help show you’re a serious buyer and may strengthen your position.

More about making an offer

Get your offer

Complete your mortgage application and get your offer

Once your offer is accepted, it’s time to complete your full mortgage application. This stage involves detailed checks on your finances and the property itself. Lenders will review your income, spending and credit history. They will also arrange a property valuation.

You may need to show documents like:

  • payslips
  • bank statements
  • identification. 

Delays can happen if information is missing, so being prepared may help keep things moving smoothly.

Once your application is approved, you’ll receive a formal mortgage offer from the lender. This sets out how much they’ve agreed to lend, the interest rate and the terms of your agreement. 

Review your offer carefully to make sure you understand the terms of the agreement before moving forward.

How to apply for a mortgage

Sort the essentials out

Find a conveyancer

A conveyancer handles the legal work involved in your purchase. This includes:

  • reviewing contracts
  • carrying out searches
  • liaising with the seller’s solicitor.

They’ll also help make sure everything is in place before exchange and completion. Timelines can vary depending on the property and any issues raised, but clear communication can help keep things moving.

Guide to conveyancing

Organise a home survey

A home survey helps check the condition of a property before you commit to buying. These surveys can highlight potential issues that may affect value or future repair costs.

There are different types of surveys to choose from, ranging from basic condition reports to detailed structural surveys. The right choice often depends on the property’s age, condition and price. Understanding your options can help you decide what level of detail you need before moving forward. 

Home surveys and valuations

Sort your buildings insurance

Arranging buildings insurance is an important step before you complete on your first home. It protects your home's structure and is often a condition of your mortgage.

Cover levels can vary based on factors such as property type and rebuild cost. You might also consider contents insurance to protect your personal items. Choosing suitable cover can give you peace of mind.

Get home insurance

Get ready to complete

Exchange contracts with the seller

This is when the purchase becomes legally binding. Both parties agree to the terms, and a completion date is set.

Your conveyancer will confirm all checks are complete before progressing. Timing can vary depending on the property chain and paperwork delays. 

Once the completion date is agreed, you move closer to finalising your purchase. 

Exchange of contracts

Get ready to move

It’s time to prepare for moving day. This stage includes transferring money and confirming the title deeds are ready. 

You’ll also want to arrange practical steps, such as booking a removals company, setting up utilities and updating your address. Get started on your big move with our moving checklist.

Moving checklist

Complete the purchase of your first home

Here, ownership officially transfers to you. Your lender releases the mortgage money, your conveyancer pays the seller and you can finally collect your keys. From this point, your mortgage repayments will begin, based on the agreed terms.

Repaying your mortgage

Let’s look at the details

You may also like

How to apply

We can help you find and apply for the right mortgage.

How to apply for a mortgage

First-time buyer help

Explore more resources for first-time buyers with our help and support hub.

First-time buyer help Opens in same tab

Get in touch

You can call us or book a video mortgage appointment from the comfort of your own home. 

Contact us

Mortgages

Explore your mortgage options and find a deal that best suits you.

More on mortgages

Dog in box

Mortgages

Explore your mortgage options and find a deal that best suits you.

More on mortgages