Buying your first home in 2026 looks different from a year ago. Stamp duty thresholds changed in April 2025 when the temporary relief expired. Mortgage rates have fallen meaningfully. And there are now more 95% LTV products available than at any point since 2008. This guide covers what you actually need to know, in the right order.
Step 1: Work out what you can afford
Most lenders will lend between 4 and 4.5 times your annual income. Following FCA rule changes in March 2025, lenders can now apply lower stress rates for longer fixed terms, which can improve the amount they offer. Specialist lenders can go up to 5 or 5.5 times income — particularly for professionals in certain fields and for couples with strong combined incomes.
Use our mortgage calculator for an initial estimate, but always speak to an adviser before making offers — lenders also scrutinise spending, debts, and credit history in detail.
Step 2: Save your deposit — and open a Lifetime ISA
The minimum deposit for most residential mortgages is 5% of the property value. As of March 2026, the number of 95% LTV mortgage products on the market is at its highest level since March 2008 — meaning more options for buyers with smaller deposits than there have been in almost two decades.
If you have not opened a Lifetime ISA (LISA) and you are between 18 and 39, open one now. The government adds a 25% bonus on contributions, up to £1,000 bonus per year (on a £4,000 contribution). The property must be worth £450,000 or less, and the account must have been open for at least 12 months before completion. It is free money on top of your deposit.
Step 3: Check and improve your credit score
Check your credit report with all three UK agencies before applying. The easiest way to see all three is via Checkmyfile (checkmyfile.com). Look for incorrect entries — wrong addresses, accounts you do not recognise, or late payment markers that are factually wrong.
Key things that damage scores: missed or late payments, high credit card utilisation, not being on the electoral roll, multiple credit applications in a short period. Start addressing any issues at least six months before you plan to apply. Read our full credit score guide here.
Step 4: Get a Mortgage in Principle
An Agreement in Principle (AIP) is a conditional confirmation from a lender that they would lend you a certain amount, subject to full application. Estate agents require it before taking any offer seriously. A whole-of-market adviser obtains your AIP from the most appropriate lender for your profile — not just whoever your current bank happens to be.
Step 5: Understand stamp duty — the rules changed in April 2025
The temporary stamp duty relief introduced in September 2022 ended on 31 March 2025. From 1 April 2025, the pre-2022 first-time buyer thresholds are back in force.
Current first-time buyer SDLT (England, from April 2025):
- Up to £300,000: 0% (no stamp duty)
- £300,001 to £500,000: 5% on the portion above £300,000
- Over £500,000: no first-time buyer relief — standard rates apply from £0
This means a first-time buyer purchasing at £400,000 now pays £5,000 in stamp duty. Under the temporary relief that ran until March 2025, that same purchase would have been stamp-duty-free. Factor this into your savings target carefully.
Scotland (LBTT) and Wales (LTT) have separate rules — speak to an adviser for the position in your nation.
Step 6: Make a full mortgage application
Once your offer is accepted, your adviser submits a full application to the lender. The lender will run a credit check, request supporting documents, instruct a property valuation, and issue a formal mortgage offer. This typically takes 2-6 weeks. Following the FCA simplified switching rules introduced in July 2025, affordability checks for like-for-like applications have also been streamlined.
Why a whole-of-market adviser makes a material difference
Your bank can only offer you their own products — a handful of rates. A whole-of-market adviser like Vsure Financial searches every available lender, including those that do not appear on comparison sites and some that deal exclusively through brokers. For first-time buyers — more likely to have limited credit history, deposits near the minimum, and less familiarity with the process — having the right lender from the start matters enormously. Find out more about first-time buyer mortgages here.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Hidden Costs First-Time Buyers Often Miss
Beyond your mortgage, there are several costs to budget for. Stamp duty is a major one — in 2026, first-time buyers enjoy a 0% rate on properties up to £300,000. Above that threshold, standard rates apply (3–15% depending on property price).
Solicitor fees range from £400–£1,000. Survey costs vary: a basic valuation costs £150–£250 (required by lenders), while a full structural survey can cost £500–£1,500 but is highly recommended for older properties.
Do not forget buildings insurance, which is mandatory before completion. Home contents insurance, while optional, protects your belongings. Budget £20–£100 monthly depending on cover level.
Finally, plan for moving costs and any essential repairs or improvements to your new home. Many first-time buyers underestimate these and find themselves stretched financially after completion.
Your Credit Score Matters More Than You Think
Lenders do not just look at your deposit size — they scrutinise your credit history. Even small defaults on credit cards or missed payments years ago can affect your mortgage rate.
In 2026, the credit reporting system has become more sophisticated. Lenders now consider affordability more carefully and may decline mortgages to borrowers they believe will not cope with higher rates.
Before applying, check your credit report for errors. You can do this free through services like Clearscore, Experian, or Equifax. If you have a limited credit history, consider building credit by using a credit card responsibly and paying it off monthly for 6–12 months before applying.
Government Help for First-Time Buyers
First-time buyer schemes vary by region. In 2026, some councils and housing associations offer shared ownership schemes, where you buy a portion of the property and rent the rest. This can be ideal if you can not save a large deposit.
Lifetime ISAs (Individual Savings Accounts) allow you to save up to £4,000 per year with a 25% government bonus (up to £1,000 per year) — but you must be aged 18–39 and plan to buy within the next few years.
The Mortgage Application Process
Once you have found a property and your offer is accepted, your lender will order a valuation. This typically takes 5–10 days and costs you £150–£300. The valuation protects the lender but also protects you — if the property is overvalued, you will know before committing.
After valuation approval, you will move to “mortgage offer” stage. Your solicitor will conduct searches, and you will exchange contracts. Completion day is when funds are transferred and you collect the keys. This usually happens 7–14 days after exchange.
Taking the Next Step
The mortgage process can feel daunting, but you do not have to navigate it alone. Vsure’s whole-of-market search finds deals from every major lender. We will explain every step and help you avoid costly mistakes. Your first conversation is free.
Important: This article is for information purposes only and does not constitute regulated financial advice. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. VSure Financial Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Approved by The Openwork Partnership on 01/02/2025. Speak to an adviser for advice tailored to your circumstances.
