A complete guide to buying your first house

When getting a mortgage to buy a home you'll need a mortgage deposit. You'll need a deposit of at least 5% of the final sale price (a 95% LTV mortgage) to potentially be eligible for one of our mortgages. However, the higher your deposit as a percentage of the price of the property, the less money you will need to borrow, so you may also want to consider a 90% LTV mortgage (10% deposit) or lower.

For example you're buying a house for £100,000 and you choose to pay 5% deposit (£5,000) you then would need to borrow £95,000 on your mortgage.  If you chose to pay a 15% deposit ( £15,000 ) you would then only need to borrow £85,000 and potentially get lower interest rates than if you paid £5,000.

Building a mortgage deposit might feel daunting. So, here are some useful saving tips for first time home buyers.

• Set a savings goal – work out how much deposit you'll need, and how long you may have to save for. Learn more with our guide on saving for your mortgage deposit.
• Create a budget and stick to it – take a closer look at your spending with our budget calculator.
• Cut back where you can – are there any little luxuries you could cut back on to reach your goal quicker? Remember to cancel unused gym memberships and consider cutting out the mid-week takeaway. Saving £50 per week adds up to over £2,600 in a year.
• Get help from elsewhere – Some first time buyers may be able to use a gifted mortgage deposit, from a parent or guardian, for example. 
• Buy a property with a friend or family member - A Family-Backed mortgage, sometimes known as a ‘joint borrower sole proprietor’ (JBSP) mortgage, can help buyers get onto the property ladder sooner or borrow more. It lets you add a second person to your mortgage but without them owning the property.

A mortgage is a type of long-term loan you can use to help buy a house, flat or another type of property. In simple terms, it's an agreement between a lender and borrower, secured on a property.

When buying a new home, most people don’t pay for it all in one go. Mortgages let you spread the cost – typically, over something like 25-35 years.

Learn more about mortgage interest rates and have a look at a mortgage types to help you decide.

• Check your credit score – a credit score gives you an indication of your credit health. Most lenders use this score as one of the factors to decide whether to offer you products such as credit cards, loans and mortgages. You can easily check your credit score for free in our mobile app (app criteria apply). It will be updated every 30 days. Your credit score in our app is provided by TransUnion, one of the UK's leading credit reference agencies.
• Get on the electoral roll – if your name isn't on there, you’ll find it harder to get credit. Go to The Electoral Commission to find out how to register.
• Review your credit file – this is all the data that underpins your credit score. If you think information on your file is wrong, ask your bank to correct it or challenge it with the credit reference agency. Errors on your credit file can lead to your application being rejected. You can find out more about improving your credit file on the MoneyHelper website.
• Make regular card payments – make sure you avoid missing card payments or paying late by setting up Direct Debits. Too much credit could have a negative effect so make sure you cancel any unused cards.

Before we lend customers the money to purchase their home, it is our responsibility to make sure we think you can afford the mortgage. Although circumstances can change, there are a number of factors we consider when making our decision.

Check mortgage eligibility to see if you would be able to apply.

Unexpected costs when buying a home is a starting point to see what else you might need to pay for, and you can use our budget calculator to see how this could impact your day to day finances.

As well as your monthly mortgage payments, there are other costs you'll need to cover when buying your first home, such as Stamp Duty and insurance. 

Our mortgage calculator can give you a quick idea of how much we may be able to lend you. It takes less than 5 minutes to complete and then, with that information, you can use our mortgage rate finder tool to take a look at our current mortgage rates.  You'll then be able to see what your monthly payments might be and you can filter rates by fixed rate, tracker rates, 2 year and 5 year deals.

An Agreement in Principle tells you how much we could lend you based on your income, the value of the property you want to buy and the amount of deposit that you have towards the purchase.

To find out how much we could lend you can take less than 10 minutes and there is no commitment and it won't affect your credit score as we use a soft credit check.

Once you've got your Agreement in Principle, you can see the rates available and find out what your monthly payments could be plus you can download a certificate to show your estate agent that you are in a position to get a mortgage on a new home.

When buying your first home, it's important to think about the property and its surrounding area. Make a list of the top features your new home should have: How many bedrooms do you need? Is off-street parking more important than a large garden? Is location and access to a city centre key?

Do you prefer the idea of living in an older property or a brand-new home? Older places might have more character, but could be costly to renovate and maintain. New build homes are designed for modern living and are more energy-efficient, which can make them a popular option for some people.

Things like a garden or space to work from home may also be things that you really want in your new home. Decide what is non-negotiable and what is a nice to have so that you can narrow your search to homes that will really fit your needs. 

When you know what you want, register with local estate agents and start looking on websites like Rightmove or Zoopla.

Top tip: You can create a profile and sign up for alerts on websites so that you are notified as soon as a new property that meets your criteria is listed online.

You can then start to contact the estate agent to schedule a viewing of the properties when you find something you like.

Before viewing a property you should get a Home Report. This will give you a better understanding of the conditions of the property. It will include, the Single Survey, the Energy Performance Certificate (EPC) and the Property Questionnaire.

Usually in Scotland, the seller will provide a copy of the home report to any potential buyer. You should speak to the estate agents to get a copy of it. 

Considering an energy efficient home could help you get access to lower interest rates on your mortgage,  known as a Green Mortgage.

Viewing a potential home is an exciting prospect and there can be a lot to take in. 

Therefore, on a first viewing, it could be easy to miss something important, or perhaps see things with 'rose-tinted glasses'. Arranging a second or if necessary, third viewing, can help make sure you make an informed decision about any potential offer.

Ideally, viewing the property at different times of day may help too. This can help you consider how sunlight impacts the property, for example.

There's lots to consider when viewing a property, and it's easy to get overwhelmed. Taking a checklist with you is a great idea to help you get the most from your viewing.

Some of the things you might want to consider.

• Is there any visible damage to the exterior of the property?
• What is the condition of the front door?
• Do all exterior doors & windows have suitable, working locking mechanisms?
• Are there any areas of visible damp on interior walls?
• How old is the property's boiler / central heating system, and has it been routinely serviced?
• What is the condition of fitted kitchen appliances?
• What is the condition of bathroom fittings?
• If there is any outdoor space, how well is this maintained?
• Are there any outdoor boundaries that you would need to maintain, like a fence or wall? If so, what is the condition of these?

Think about the surrounding area.

• What is traffic like nearby (at different times of the day)?
• How far away is the nearest local transport (e.g. train station)?
• Is there green space nearby, like a park or wooded area?
• Where are the nearest supermarkets or local shops?

If you haven't before, now is the time to get an Agreement in Principle.

An Agreement in Principle tells you how much we could lend you based on your income, the value of the property you want to buy and the amount of deposit that you have towards the purchase.

To find out how much we could lend you can take less than 10 minutes and there is no commitment and it won't affect your credit score as we use a soft credit check.

Once you've got your Agreement in Principle, you can see the rates available and find out what your monthly payments could be plus you can download a certificate to show your estate agent that you are in a position to get a mortgage on a new home.

• First time buyer mortgages – if you’re buying a property you plan to live in as your main residence and you’ve never owned a property before and new to the housing market you are considered a first time buyer.
• Joint mortgages – you may be thinking about buying a home with a partner, friend or family member. Find out what you need to know about buying together.
• Family-Backed mortgage - a joint mortgage where only one person owns the property.
• Other mortgage types - beyond fixed and tracker, there are other mortgages for different types of home or property that we may be able to offer, depending on your circumstances.

House prices fluctuate, and different areas will be in greater demand than others. If you've found a home you love, it can be easy to let your emotions take over, particularly if you've never bought property before. 

It's important to consider the property's asking price and how this compares to similar properties in the area that are for sale, or have recently sold. Use a property website such as Rightmove or Zoopla to determine recent sold prices in the area using the postcode.

Consider any potential money you might need to spend on the property if you were to buy it. If renovations are needed, or even just redecorating, then costs can climb quickly.

This should help you understand if you are paying a fair price for the property. Remember, a home report will tell you the current market value and the conditions of the property, we will consider this when deciding on the amount we will lend you.

When you’ve found the right place and ready to buy, you can put a verbal offer in through the estate agents. Once accepted you then need to appoint your own solicitor to put in a formal offer. Remember the sale price is what the seller hopes to get, but you may be able to agree a lower price.

So that you’re confident in your discussions, you should use our Agreement in Principle tool to have confidence that you should be able to get a mortgage for the amount you are offering. The estate agents may ask for proof of an agreement in principle to back up your offer. 

When you apply for a mortgage, lenders will look at your income and outgoings to make sure that you can afford the mortgage payments.

To prove your income you may need to show pay slips and bank statements and, if you’re self-employed, you may need copies of your tax returns and business accounts, all prepared by an accountant. Having these ready ahead of time could save you a lot of time and stress down the line.

Find out what documents you may need to apply for a mortgage.

• Before you apply for a mortgage, it will be useful to have several documents to hand as well as having a good understanding of your finances to help prepare you for getting a mortgage. 
• Once you have your Agreement in Principle in place, you can speak to one of our qualified mortgage advisers via phone or video with screen sharing capability.
• Alternatively, Log in and retrieve your Agreement in Principle if you saved it. Otherwise you'll need to a new one before you can apply for your mortgage.
• You'll then see the mortgage rates available to you. Select the mortgage that you want, to see a personalised mortgage illustration and start the application form.

• Once you've uploaded your supporting documents and completed all the tasks on your mortgage dashboard, your mortgage application will be submitted.
• Remember, you only have 14 days to upload your documents on the mortgage dashboard.
• If you are applying for a joint mortgage, then the 2nd applicant will also receive an email. The email will prompt them to log into their own mortgage dashboard and they will need to upload their own documents to the mortgage dashboard.
• We'll then complete the normal affordability and credit checks before finalising your mortgage offer. 

Your solicitor will get started on the rest of the legal work. They usually have a number of things to tick off, like; searches on the property and title deeds, provide legal advice on the purchase process, see proof of your deposit, which could be in some cases a gift from a family member. In this case, both the solicitor and lender will want to see a signed letter from the parties gifting the money. Your solicitor will help ensure the letter is sufficient as a legal statement.

Your solicitor also deals with the transaction of money for the purchase, so you should have your deposit amount ready to be sent to your solicitors bank account.

Exchange' refers to the exchange of contracts between you and the seller's solicitor, with you paying your mortgage deposit. At this point, both parties are bound to the transaction - if you pull out beyond this point, you'll be at risk of losing your deposit.

• In England and Wales, when you exchange contracts, you'll sign a contract that legally commits you to buying the property. You'll need to pay your deposit, the signed contract will be exchanged with the seller's solicitor or conveyancer, and the two sides will agree a date to complete the sale.
• In Scotland, you will be legally committed to buying the property when missives have been concluded. 

You'll need to have buildings insurance in place too, in case something happens to the property before you move in. If you're buying a leasehold flat, this might be covered by the landlord who owns the freehold. In Scotland, you'll need to have insurance in place from the date of entry. 

Read more about home insurance.

Buying a home involves significant sums of money. Be aware of scams, particularly when you pay your mortgage deposit.

It's wise to be sceptical of anyone asking you to transfer money, even if it appears to be from your conveyancer. If you're at all suspicious, or feel you are being pressured to transfer any funds, contact your conveyancer directly over the phone, using a number you are familiar with or from their website, and ask them to verbally verify the details.

If you’re a first time buyer, you could get a discount on stamp duty. Depending on where in the UK you are buying and the property price, you may not need to pay any stamp duty.

In Scotland Stamp duty is known as Land and Building Tax (LBTT), your solicitor will guide you. Find out more about Land and Building Tax (LBTT).

'Completion' is the final stage of the transaction. Your mortgage provider will provide the remaining funds for the purchase (this is called 'drawdown' of the mortgage) to the seller's solicitor. Once this is confirmed, you'll receive the keys and are free to access the property and move in.

The completion date needs to be decided between both the buyer and seller of the property, this is agreed through solicitors, this date is usually agreed before the exchange of contracts, and it's typically during the week to allow for money transfers and other necessary things to do. 

When there's a chain of properties this is where it can get a little trickier as everyone needs to agree.

It’s time to pick up the keys to your new home – this is when the property legally becomes yours. All the forms have been signed, Stamp Duty has been paid and the money has been transferred to the seller’s solicitor for the purchase of the property.

You would normally go to the office of the estate agent to collect the keys or they may offer to meet you at your new home to hand you the keys!

A home move checklist lets you get what’s in your head down on paper. By writing everything down, you can better visualise what you need to do. This will help make the process feel more manageable. 

You can do this on paper or you may find it more convenient to use a note-taking app on your phone. That way, it's always available to update or check.

• Protect your home – alarm systems, locks, windows – there is a lot you can do to ensure your home is always safe.
• Insure what is inside your home too – protecting your possessions at home with insurance is vital.

You can find out more about your home insurance options

Life insurance is not a requirement of our mortgage. However, having it in place could offer you the confidence that whatever happens, you or your loved ones could be protected.

Find out more about your life insurance options.

Life insurance is provided by Aviva.