First-Time Buyer Guide

Where to Start?

Buying your first home can feel overwhelming, but having a clear starting point helps reduce stress and improve your decision-making.

Here’s what to do first:

• Get your credit score checked (Experian, Equifax, TransUnion)
• Assess your income, expenses, and how much you can comfortably repay monthly
• Save a deposit (usually 5-20%)
• Research the areas you want to live in - consider transport, schools, amenities
• Speak to a mortgage adviser - this helps avoid costly mistakes and sets realistic expectations

The earlier you get professional advice, the better you can plan your journey.

How Much Can I Borrow?

This depends on several factors. Let’s break them down:

• Income: Lenders typically offer 4 to 5 times your gross income. Higher earners or professionals may qualify for 5.5x or more.
• Deposit: A bigger deposit reduces your Loan-to-Value (LTV) ratio and unlocks better rates.
• Credit Profile: Lenders assess your payment history, credit utilisation, and any defaults or missed payments.
• Commitments: Monthly debts (credit cards, loans, childcare) reduce how much you can borrow.
• Mortgage Term: Longer terms reduce monthly repayments, increasing affordability - though total interest will be higher.

Example: A couple earning £40,000 and £30,000 could borrow between £280,000 and £350,000 depending on their deposit and debts.

Speak to a broker to get a lender-specific affordability check rather than relying on online calculators.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland.

• First-time buyers are exempt on purchases up to £425,000.
• For properties between £425,001 and £625,000, you pay 5% on the amount above £425,000.
• Over £625,000? The exemption doesn’t apply - standard rates are used.

Example: Buy at £500,000 - You pay 5% on £75,000 = £3,750.

Standard Rates:

• £0 to £250,000: 0%
• £250,001 to £925,000: 5%
• £925,001 to £1.5m: 10%
• Over £1.5m: 12%

Stamp Duty is due within 14 days of completion. Usually handled by your solicitor. Use an SDLT calculator online to get an exact figure.

What Fees Are Involved?

• Broker Fees: Some charge a fixed fee or percentage. Home Me Mortgages offers transparent, fair pricing.
• Valuation Fee: Basic mortgage valuations may be free; Homebuyer Reports and Building Surveys range £400-£1,200.
• Legal Fees: Conveyancing typically costs £800-£1,500. Make sure this includes searches and bank transfer fees.
• Stamp Duty: Covered earlier, ranges from £0 to thousands depending on the purchase price.
• Surveys: Basic valuations won’t highlight structural issues. We recommend a Homebuyer Report or full Building Survey.
• Searches: Local authority, drainage, and environmental searches total around £200-£400.
• Deposit: Usually 5% minimum, but the more you can put down, the better the rate.
• Removals: £300-£1,000 depending on distance and amount moved.

Always plan for 3-5% of the property price as total buying costs beyond your deposit.

Freehold vs Leasehold

• Freehold: You own the property and the land it sits on.
• Leasehold: You own the property for a fixed period but not the land. You may pay ground rent and service charges.

Things to watch out for with leasehold:

• Lease length - under 90 years can reduce resale value.
• Excessive service charges or ground rent escalations.

Your solicitor will review the lease. Ask questions early to avoid surprises.

Credit Scores & First-Time Buyers

Lenders use your credit score to decide if they’ll lend, and what rates they’ll offer.

To improve your chances:

• Register on the electoral roll at your current address.
• Keep credit card balances low.
• Pay bills on time.
• Avoid taking out new credit just before applying.
• Check your report for errors on Experian, Equifax, and TransUnion.

A small credit card used and paid off monthly can help build your score.

New Builds vs Older Homes

New Builds:

• Energy efficient and under warranty (NHBC etc)
• Minimal repair costs early on
• May come with incentives (developer paid Stamp Duty, furnishings, etc)
• Can be leasehold, even for houses

Older Homes:

• Often larger rooms, more character
• Freehold more common
• May require modernisation - budget for repairs

Always get a full survey if buying an older home. Issues like damp, wiring, or roofing can be costly.

Government Schemes to Help You

• Lifetime ISA (LISA): Save up to £4,000/year. Government adds 25% bonus. Must be used for first home or retirement.
• Shared Ownership: Buy a % of the property (usually 25-75%) and pay rent on the rest. Ideal for lower deposits.
• First Homes Scheme: New builds sold at 30-50% discount to local first-time buyers and key workers.
• Help to Buy ISA: Closed to new applicants, but still usable if already opened before deadline.

Some local councils or developers offer their own schemes - ask your broker or estate agent.

What Happens After Your Offer is Accepted?

1. Apply for a mortgage: Now that a price is agreed, you submit your full mortgage application.
2. Instruct your solicitor: They’ll start searches and handle legal paperwork.
3. Valuation and surveys: The lender checks the property’s worth. You may want a more detailed survey.
4. Mortgage offer issued: Once checks are done, you’ll get a formal mortgage offer.
5. Exchange contracts: You pay your deposit. The sale becomes legally binding.
6. Completion day: Remaining funds are transferred and you get your keys!

This typically takes 8-12 weeks, but can be faster or slower depending on chains and paperwork.

Stay in touch with your solicitor and broker - good communication keeps things moving.

Why Work With Home Me Mortgages?

• Specialists in first-time buyers - we make things simple and stress-free.
• Access to over 100 lenders - from high-street banks to specialist providers.
• We’ll help you understand your numbers, protect your income, and negotiate the best rates.
• Based in Maidenhead with strong knowledge of local markets: Windsor, Reading, Marlow, and beyond.
• Friendly, expert advice - we’ve helped hundreds of people buy their first home.

We don’t just get you a mortgage. We support you through every step of your journey.