Buying Your First (or Next) Home in the UK: The Ultimate Guide
This article covers new property search, mortgages, deposits, a detailed list of initial expenses with estimates, and an address change checklist.
The dream of owning a home – a place to call your own, build equity, and create lasting memories – is a significant milestone for many. But the journey to homeownership in the UK, while exciting, can also feel complex and laden with costs. At Plouta, we believe in empowering you with clear, comprehensive information to navigate this journey confidently, helping you protect your money, save effectively, and build a secure foundation for your financial future.
This ultimate guide will walk you through every crucial step of the UK home-buying process. From initial planning and securing a mortgage to understanding all the associated costs and managing the big move, we've got you covered. We'll also provide insights into a downloadable checklist to help you budget for the array of expenses involved.
What You Will Learn in This Guide ⤵
Preparing for Homeownership: Assessing affordability, saving for that crucial deposit, understanding your credit score, and exploring government schemes.
The Home Buying Journey: Navigating property searches, making offers, the mortgage application maze, legal processes, and understanding property surveys.
The Real Costs of Buying & Moving: A detailed breakdown of upfront expenses, moving costs, and initial home setup costs, with estimated figures for 2025.
Your Essential Moving-Out Checklist: A comprehensive list of who to notify when you change your address.
Budgeting as a New Homeowner: Managing ongoing costs and settling into your new home.
Part 1: Preparing for Homeownership – Your Initial Steps
Before you even start Browse property portals, some groundwork is essential.
1. Assessing Your Affordability & Saving for a Deposit
How Much Can You Borrow? Lenders will assess your income, outgoings, and creditworthiness to determine how much they are willing to lend. As a general rule, you might be able to borrow around 4 to 4.5 times your annual income (or joint income), but this varies. Use online mortgage affordability calculators as an initial guide, but speak to a mortgage broker for a more accurate picture.
The All-Important Deposit: This is the upfront cash you contribute.
How Much You'll Need: While 5% deposits are sometimes possible (often with specific mortgage products or schemes), a larger deposit (10%, 15%, 20% or more) generally gives you access to better mortgage interest rates and lower monthly payments. For a £250,000 property, a 10% deposit is £25,000.
Loan-to-Value (LTV): This is the ratio of the mortgage amount to the property's value. A £225,000 mortgage on a £250,000 property is a 90% LTV (meaning a 10% deposit). Lower LTVs usually mean better rates.
Saving Strategies: Consistent saving is key. Consider using high-interest savings accounts or a Lifetime ISA (LISA) to boost your deposit funds (see below).
2. Understanding Your Credit Score and Its Impact
Your credit score is a crucial factor for lenders. A good score indicates you're a reliable borrower.
Check Your Reports: Obtain copies of your credit reports from all three main UK credit reference agencies (Experian, Equifax, TransUnion). Check for any errors and get them corrected.
Improve Your Score: Ensure you're on the electoral roll, pay all bills on time, manage existing credit responsibly (e.g., keep credit card balances low), and avoid multiple credit applications in a short period.
3. Government Schemes for Homebuyers (2025)
The UK government often has schemes to help people buy homes. As of June 2025, some options might include:
Lifetime ISA (LISA): For those aged 18-39. Save up to £4,000 per year towards your first home (or retirement) and the government adds a 25% bonus (up to £1,000 per year). The property must be in the UK and cost £450,000 or less.
Shared Ownership: Allows you to buy a share of a property (between 10% and 75%) and pay rent on the remaining share. You can buy more shares later (staircasing).
First Homes Scheme (England): Offers new homes to local first-time buyers and key workers at a discount of at least 30% against the market price. Eligibility criteria apply.
Stamp Duty Relief for First-Time Buyers: In England and Northern Ireland, first-time buyers often pay no Stamp Duty Land Tax (SDLT) on properties up to a certain value (currently £425,000 for properties worth up to £625,000 as of June 2025) and a reduced rate above that. Scotland (LBTT) and Wales (LTT) have their own land transaction taxes and first-time buyer reliefs.
Plouta Tip: Government schemes change, so always check the official GOV.UK website and specific scheme providers for the latest details and eligibility.
Part 2: The Home Buying Journey – From Search to Keys
Once your finances are taking shape, the exciting part begins.
1. Where to Search for Properties
Online Property Portals: The vast majority of properties are listed on major UK portals:
Rightmove: The largest UK property portal.
Zoopla: Another major portal offering comprehensive listings and additional data.
OnTheMarket: Focuses on "agent-backed" listings.
Estate Agents: Register with local estate agents in your desired areas. They can provide early alerts for new properties and local market insights.
New Build Developers: If interested in a new build, visit developers' websites and show homes directly.
2. Viewing Properties & Asking the Right Questions
View multiple properties to get a feel for the market and your preferences.
Key questions to ask: Why is the owner selling? How long has it been on the market? What are the local amenities and transport links like? What are the average utility bills and Council Tax band? Are there any known issues with the property or neighbours? For leasehold properties, ask about service charges, ground rent, and lease length.
3. Making an Offer
Once you find a property you love, decide on your offer. This can be the asking price, or you might offer below (or even above in a competitive market).
Make your offer through the estate agent, usually verbally first, followed by an email.
Your offer should ideally state that it's "subject to contract and survey."
If your offer is accepted, the property is usually taken off the market (though not legally binding until contracts are exchanged).
4. Getting a Mortgage: The Financial Linchpin
Mortgage in Principle (AIP) / Decision in Principle (DIP): Before making serious offers, it's wise to get an AIP from a lender or through a mortgage broker. This gives you an indication of how much you can likely borrow, strengthening your position as a buyer.
The Application Process: Once your offer is accepted, you'll make a full mortgage application. This involves detailed financial checks, income verification, and providing documents (ID, proof of address, bank statements, payslips, P60s).
Choosing a Mortgage Broker: A good mortgage broker can be invaluable. They can search the market for suitable deals, help with the application process, and advise on different mortgage types. Some are free (paid by commission from lenders), while others charge a fee.
Types of Mortgages:
Fixed-Rate: Your interest rate stays the same for a set period (e.g., 2, 3, 5, or 10 years). Offers payment certainty.
Variable-Rate (SVR): The lender's Standard Variable Rate, which can go up or down.
Tracker: Follows an external rate, usually the Bank of England base rate, plus a set percentage.
Discount: A discount off the lender's SVR for a set period.
Offset: Links your mortgage to your savings account, potentially reducing the interest you pay.
5. The Legal Process (Solicitors/Conveyancers)
You'll need a solicitor or licensed conveyancer to handle the legal aspects of buying a property.
Their Role: Conducting searches (local authority, environmental, water/drainage), checking the seller's legal title, drafting and reviewing contracts, handling the exchange of funds, and registering the property in your name.
Choosing One: Get quotes from several firms. Recommendations or panel solicitors from your lender/broker can be a starting point.
6. Property Surveys Explained
A survey assesses the property's condition. Your mortgage lender will conduct a basic Mortgage Valuation to ensure the property is worth what you're paying, but this is for their benefit, not yours. You should arrange your own independent survey.
RICS Home Survey – Level 2 (HomeBuyer Report): Suitable for conventional properties in reasonable condition. Highlights urgent or significant problems. Can include a valuation. Costs typically £400-£1,000+.
RICS Home Survey – Level 3 (Building Survey): More comprehensive, suitable for older, larger, unusual properties, or if you're planning major works. Provides a detailed report on condition and defects. Costs typically £700-£2,000+.
7. Exchange of Contracts and Completion Day
Exchange of Contracts: This is when the sale becomes legally binding. You'll pay your deposit (usually 10% of the purchase price) to your solicitor. You'll also agree on a completion date. Buildings insurance for your new home must be in place from this point.
Completion Day: The day you legally become the owner. Remaining funds are transferred, and you get the keys!
Part 3: The Costs of Buying and Moving Home – Your Essential Checklist
Buying and moving involves numerous costs beyond the property price itself. Budgeting carefully is crucial. To help, Plouta will soon be launching a downloadable Home Buying Cost Checklist & Budget Planner (Excel/Google Sheet format) – watch this space!
Here’s a detailed breakdown of potential expenses with rough estimates. These are estimates and can vary significantly based on location, property value, and service providers.
1. One-Off Upfront Costs (Before or at Completion)
2. Moving Costs
3. Initial Home Setup Costs
4. Initial Insurance Costs
5. Other Potential Initial Costs
6. Costs Related to Your Previous Property (If Applicable)
Plouta Tip: This list seems daunting, but get multiple quotes for services like removals and solicitors.
Part 4: Settling In & Managing Your New Home
Immediate Post-Move Tasks: Take meter readings, inform utility providers and council tax of your move-in date, test smoke/CO alarms, locate stopcock and fuse box.
Ongoing Costs of Homeownership:
Monthly mortgage payments.
Council Tax.
Utility bills (gas, electricity, water).
Buildings and contents insurance.
Regular maintenance and repairs (budget around 1% of property value per year).
Service charges and ground rent (if leasehold).
Budgeting as a Homeowner: Adjust your budget to accommodate these new and ongoing expenses. Building an emergency fund for unexpected home repairs is crucial.
Part 5: The Big Move – Your Address Change Checklist
Updating your address across numerous services is a vital but often tedious task. Forgetting can lead to missed bills, lost mail, or even identity fraud risks. Here’s a comprehensive checklist (many items from your list are included and categorised):
Who to Notify: Moving House Checklist
Financial & Official
Insurance
Utilities & Household
Work, Health & Family
Shopping & Subscriptions
This checklist is a general guide. Ensure you notify all relevant parties based on your personal circumstances.
Plouta Tip: Keep a running list as you remember services. Many allow online address changes. Use Royal Mail's redirection for at least 3-6 months to catch any mail you've missed.
Part 6: Building Your Future in Your New Home
Owning a home is more than just a financial transaction; it's about creating a space for your life to unfold.
Making it Your Own: Personalise your space, undertake improvements as finances allow.
Financial Planning: Continue to review your mortgage, consider overpayments if feasible to become mortgage-free sooner, and build your emergency fund for home maintenance.
Community: Get to know your local area and neighbours.
Your home can be a significant asset in your journey towards financial independence and freedom. Managing it wisely is key.
Quick Takeaway Points for Home Buyers:
Preparation is Paramount: Assess affordability, save a strong deposit, and check your credit score thoroughly before you start your property search.
Budget for ALL Costs: The purchase price is just the beginning. Use a detailed checklist (like Plouta's upcoming downloadable one!) to account for all upfront, moving, and initial setup expenses.
Mortgages – Shop Around: Don't just go to your bank. A mortgage broker can access a wider range of deals and guide you through the application. Get a Mortgage in Principle early.
Don't Skip the Survey: An independent property survey (Level 2 or 3) can save you thousands in the long run by identifying potential issues.
Legal Representation is Key: A good solicitor/conveyancer will navigate the complex legalities.
Update Your Address Everywhere: Use our comprehensive checklist to ensure a smooth transition for your mail and services.
Buildings Insurance from Exchange: This is crucial and often a mortgage requirement.
Plan for Ongoing Costs: Homeownership involves more than just the mortgage payment (council tax, utilities, maintenance).
Conclusion: Your Homeownership Journey with Confidence
Buying a home in the UK is a significant but achievable goal. By understanding the process, meticulously planning your finances, and being aware of all potential costs, you can navigate the journey with greater confidence and avoid common pitfalls. This guide, along with resources like Plouta's upcoming downloadable cost checklist, aims to equip you with the knowledge to make informed decisions.
Remember, your home is not just an asset; it's the backdrop to your life. Plan well, and you'll be well on your way to enjoying the security and freedom that homeownership can bring.
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Disclaimer: This guide provides general information about buying a home in the UK as of June 2025 and is for informational and educational purposes only. It does not constitute financial or legal advice. Property prices, mortgage rates, government schemes, tax rules, and service costs can change and vary significantly. All cost estimates are approximate and for illustration only. You should always seek professional, regulated advice from mortgage brokers, financial advisors, solicitors, and surveyors tailored to your specific circumstances before making any decisions related to buying a property. Your home may be repossessed if you do not keep up repayments on your mortgage.