The first-time buyer A to Z
Twenty-six things you will hear on the way to your first home, each explained in a paragraph. Bookmark it. Send it to your mum.
Affordability
How much a lender thinks you can repay. Roughly 4 to 4.5 times your income, adjusted for what you spend on debts, childcare and life. It is the number that sets your budget, not the deposit. Work out yours →
Broker
A mortgage adviser who searches lots of lenders for you. Often free (the lender pays them). Especially worth it if anything about you is unusual: new job, self-employed, small deposit, gifted money. Do I need one? →
Conveyancing
The legal work of buying: checking the title, doing searches, asking the seller questions, moving the money. Done by a solicitor or licensed conveyancer. Takes 8 to 12 weeks and is where most delays live. How it works →
Deposit
Your own money towards the price. 5% minimum with most lenders, 10% for better choice, 15%+ for better rates. Can be savings, a gift from family, a Lifetime ISA, or a mix, but it all needs a paper trail. How much do I need? →
Exchange
The moment contracts are swapped and the deal becomes legally binding. Until exchange, either side can walk away. After exchange, you pay the deposit and you are committed. Completion (keys) is usually one to two weeks later. Exchange and completion →
Fixed rate
A mortgage where the interest rate is locked for 2, 3, 5 or 10 years, so your payment cannot change. Most first-time buyers pick a fix. Trackers and variable rates move with the Bank of England. Fixed or tracker? →
Gazumping
When the seller accepts a higher offer from someone else after accepting yours. Legal in England, Wales and Northern Ireland until exchange. Rare, but it happens. Move fast after your offer is accepted. Making an offer →
Help available
Lifetime ISA (25% bonus on savings), the government 95% mortgage guarantee, shared ownership, First Homes (discounted new builds in England), Co-Ownership in Northern Ireland, and lender schemes for new builds. All the schemes →
Interest rate
What the borrowing costs, as a percentage per year. A 0.5% difference on a £200,000 mortgage is about £55 a month. Rates depend on your deposit size, the fix length and the lender. Fees matter too. See what a rate costs →
Joint mortgage
Buying with a partner, friend or sibling. Both incomes count, both credit files count, both are liable for the whole loan. Get a deed of trust if you are putting in different amounts. Buying together →
Keys
You get them on completion day, once your solicitor confirms the money has arrived with the seller's solicitor. Usually between noon and 2pm. Not before, however nicely you ask the agent. Completion day →
Leasehold
You own the flat (or occasionally house) for a fixed number of years, not the land. Watch for short leases (under 80 years), ground rent and service charges. Freehold means you own it outright. Leasehold vs freehold →
Mortgage in principle
A lender's written estimate of how much it would lend you, based on a soft credit check. Not a guarantee, but agents want to see it and it stops you looking at the wrong houses. Takes an afternoon. Get one →
New build
A brand-new home from a developer. Pros: no chain, warranty, incentives. Cons: premium price, snagging, sometimes a 28-day exchange deadline, and lenders can want a bigger deposit on new-build flats. New build pros and cons →
Offer
Two kinds. Your offer on the house (through the agent, in writing, not binding). And the mortgage offer, the lender's formal yes after the valuation and underwriting, valid for 3 to 6 months. Making an offer →
Product fee
A charge for the mortgage deal itself, often £999 or so. Can be added to the loan (you pay interest on it) or paid up front. A deal with no fee and a slightly higher rate is often cheaper on smaller mortgages. All the costs →
Questions to ask
At a viewing: why are they selling, how long has it been on, what is included, any work done, what are the neighbours like, how old is the boiler. Our viewing checklist has forty of them. Viewing checklist →
Remortgage
Switching to a new deal when your fixed rate ends, so you do not roll on to the lender's expensive standard variable rate. Start looking six months before. Not a first-time buyer job, but the clock starts the day you complete. When your fix ends →
Stamp duty
Tax on buying property. First-time buyers in England and Northern Ireland pay nothing on the first £300,000 of a home up to £500,000. Scotland has LBTT, Wales has LTT, with their own rules. Calculate it →
Term
How many years you repay over. 25 was standard; 30, 35 and even 40 are common now. Longer means lower monthly payments but far more interest overall. You can shorten it later or overpay. See the difference →
Underwriting
The lender checking everything: your income, spending, credit, the property. Happens after you apply, before the offer. This is when they ask for that one extra document. Answer fast. The full process →
Valuation
The lender's check that the house is worth what you are paying. Basic, often done from a desk, and not a survey. If it comes in low (a 'down valuation') you may need to renegotiate or find more deposit. Valuation vs survey →
Working out your budget
Deposit plus stamp duty plus fees plus moving plus a cushion. Then the monthly figure: mortgage, council tax, energy, insurance, and whatever the house needs. Do it before you view, not after you fall in love. Budget planner →
eXtra costs
Survey £400 to £1,500. Solicitor £1,000 to £2,000. Searches £250 to £450. Mortgage fee up to £999. Broker fee £0 to £500. Removals £300 to £1,500. Buildings insurance from exchange. Budget £3,000 to £5,000 on top of the deposit. The full list →
Your credit score
Not one number. Each lender scores you its own way from your credit reports. What matters: paying everything on time, being on the electoral roll, not maxing out cards, and no new credit in the six months before you apply. Fix your score →
Zoopla, Rightmove and the rest
Set alerts on both, plus OnTheMarket. Look at sold prices, not asking prices. And register with local agents directly: the best houses sometimes go before they are listed. Finding the house →
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