Top 10 Things You Need to Know About Getting on the Property Ladder

Buying your first home is an exciting milestone, but it can also feel overwhelming. With so much to consider, from mortgages to legal requirements, it’s essential to be well-informed before taking the plunge. If you’re a first-time buyer in England, this guide will walk you through the key things you need to know to navigate the process with confidence.

1. Understand Your Budget and Affordability

Before you start house hunting, work out how much you can afford. Consider:

• Your deposit (typically at least 5% of the property price)
• Mortgage affordability based on your age,  income, financial dependents & other commitments / outgoings
• Additional costs such as stamp duty, solicitor fees, surveys, and home insurance

Using an affordability calculator from a reputable mortgage lender or broker can help you get a clearer picture of what’s realistic for you.

2. Get a Mortgage Agreement in Principle (AIP)

An Agreement in Principle (AIP) from a lender gives you an estimate of how much you can borrow. Having an AIP can make you a more attractive buyer to sellers, as it shows you’re serious and financially prepared and estate agents will be keen for you to view properties they have up for sale

3. Explore Government Schemes for First-Time Buyers

The UK government offers several initiatives to help first-time buyers, such as:

• Lifetime ISA (LISA): Save up to £4,000 a year, and the government adds a 25% bonus.
• First Homes Scheme: Discounts of at least 30% on new-build homes for eligible buyers.
• Shared Ownership: Buy a percentage of a property and pay rent on the remainder.

Check eligibility criteria carefully before applying.

4. Know the Costs Beyond Your Mortgage

Beyond your mortgage payments, factor in:

• Stamp Duty Land Tax (SDLT): From 1st April 2025, first-time buyers won’t pay stamp duty on properties up to only £300,000, and they’ll only get first-time buyers’ relief on properties up to £500,000 (5% on properties £300,000 to £500,000).
• Legal Fees: Solicitors or conveyancers handle contracts and legal checks.
• Survey Fees: A survey ensures the property is in good condition.
• Moving Costs: From hiring a removal company to furnishing your home.

5. Choose the Right Mortgage

There are different types of mortgages, including:

• Fixed-rate mortgages (your interest rate stays the same for a set period)
• Variable-rate mortgages (your rate can fluctuate)
• Tracker mortgages (linked to the Bank of England base rate)

Speaking with a mortgage broker can help you compare options and find the best deal for your circumstances as your personal budget preferences and capacity to absorb rate increases wil certainly be a factor.

6. Research Locations Carefully

Think beyond the house itself—consider the area:

• Local amenities (schools, transport links, shops)
• Crime rates and community feel
• Future property value trends
• Commute times and job opportunities

Spending time in the area, especially at different times of day, can help you make a more informed decision.

7. Understand the Homebuying Process

The process of buying a home typically includes:

1. Finding a property and making an offer
2. Instructing a solicitor for conveyancing
3. Applying for a mortgage
4. Conducting property searches and surveys
5. Exchanging contracts (legally binding stage)
6. Completion (when you get the keys!)

8. Be Aware of Leasehold vs Freehold

• Freehold: You own the property and the land outright.
• Leasehold: You own the property but not the land it’s built on, often requiring service charges and ground rent payments.

Leasehold properties, especially flats, come with specific terms, so always review the lease length and conditions.

9. Don’t Skip Property Surveys

A mortgage valuation is not the same as a survey. Consider getting:

• Homebuyer’s Report (for newer homes, checks for major issues)
• Full Structural Survey (for older homes, gives detailed insight into potential repairs)

A survey can save you thousands in unexpected repair costs. For example many properties built before 2000 may have some element of asbestos so having a survey could be life-saving too!

10. Work with Trusted Professionals

Throughout your homebuying journey, you’ll work with various professionals, including:

• Mortgage brokers: Help you find the best mortgage deals.
• Solicitors/conveyancers: Handle legal aspects of the purchase.
• Surveyors: Assess the condition of the property.
• Estate agents: Act as intermediaries between you and the seller.

Always choose regulated professionals. Mortgage brokers should be FCA-authorised, and solicitors should be members of the Law Society or Council for Licensed Conveyancers.

Final Thoughts

Buying your first home is a significant step, but with the right knowledge and preparation, you can navigate the process smoothly. Take the time to research, budget carefully, and seek professional advice where needed. By following these key steps, you’ll be well on your way to securing your place on the property ladder.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a qualified financial advisor or mortgage broker before making any financial decisions.