Buying a property in the UK: a step-by-step guide

Buying a property involves several decisions that need to fit together: what you can afford, whether the home suits you and whether its legal and physical condition is acceptable. This guide covers an ordinary home purchase across the UK, highlighting where the national rules differ. Auctions and new-build reservations can involve different deadlines or earlier commitments, so take legal advice before signing or paying a reservation fee.

Plan the financial and legal steps before collecting the keys.

1. Set your budget and prepare your deposit

Start with your income, regular spending, debts and savings. Decide what monthly payment would leave room for household bills, repairs and unexpected costs. A lender’s maximum borrowing figure is not necessarily a comfortable budget for you.

A 5% deposit may be enough for some mortgages, but eligibility depends on the lender, your circumstances and the property. A larger deposit can improve your options without guaranteeing approval. If you are still saving, our guide to building a mortgage deposit can help you plan ahead. Speak to an adviser early rather than waiting until you have saved the whole amount.

Keep purchase costs separate from the deposit. Obtain quotes for legal work and searches, a survey, any mortgage or adviser fees, insurance and removals. Allow for tax and a repair reserve too: there is no single cost allowance that fits every purchase.

Which property tax applies?

The country where the property is located determines the tax:

• England and Northern Ireland: Stamp Duty Land Tax (SDLT). Eligible first-time buyers pay no SDLT on the first £300,000 and 5% on the portion up to £500,000. Relief is unavailable if the price exceeds £500,000. All buyers must qualify and intend to occupy the property as their main home. Check the current SDLT rates and relief.
• Wales: Land Transaction Tax (LTT). The main residential nil-rate band is £225,000. There is no separate first-time-buyer relief; see the Welsh Revenue Authority guidance.
• Scotland: Land and Buildings Transaction Tax (LBTT). The ordinary residential nil-rate band is £145,000. Eligible first-time-buyer relief raises it to £175,000, saving up to £600. See Revenue Scotland’s rates and relief.

For SDLT first-time-buyer relief, previously owning a qualifying interest in a home anywhere in the world generally prevents first-time-buyer status, including ownership acquired by gift or inheritance. Selling it does not restore that status. Ask your conveyancer to check your history and the rules for the actual transaction. Additional-property charges, non-resident SDLT and special transactions can change the amount due; the figures above are not a complete tax calculation.

2. Choose an area and shortlist suitable homes

Use your budget to narrow the search, then separate essentials from preferences:

• Location, commuting time, schools and access to local services.
• Bedrooms and space for changing household needs.
• Accessibility, such as step-free access or a ground-floor bedroom.
• A garden, parking and the amount of renovation you can realistically afford.

Property portals such as Rightmove and Zoopla, alongside local estate agents, can help you compare asking prices and arrange viewings. Visit in person where possible, look for signs of damp or disrepair, and check the Energy Performance Certificate (EPC) and likely running costs.

Ask about tenure, the seller’s chain and expected timescale. For leasehold homes, establish the remaining lease length, ground rent, service charges and any planned major works. Your legal adviser will investigate these details; an estate agent’s answer is only a starting point.

Government support programmes

Check eligibility, local availability and ongoing costs before relying on a scheme. A purchase discount or shared ownership arrangement does not automatically give you tax relief.

First Homes in England

The First Homes scheme offers eligible homes in England at a 30% to 50% discount. Buyers must be at least 18 and all must be first-time buyers. Combined income from the previous tax year must not exceed £80,000, or £90,000 in London, and a mortgage must cover at least half the discounted price. The property must be your only or main home; local eligibility conditions may also apply.

For a new-build First Home, the price after discount cannot exceed £250,000, or £420,000 in London, and councils can set lower limits. Availability varies. The discount is retained on resale and rules restrict who can buy and how the home may be let, so read the scheme conditions before proceeding.

Shared ownership and regional alternatives

With Shared Ownership in England, you buy a share and pay rent on the part you do not own. Budget for the mortgage, rent, service charges and repair responsibilities. Buying further shares is called staircasing: the permitted increments, fees and maximum ownership depend on the lease. Some homes cannot be staircased to 100%. Read the key information document and official staircasing guidance.

The other nations have separate arrangements:

• Shared Ownership – Wales has its own eligibility rules and share-and-rent terms.
• Scotland’s LIFT schemes provide shared equity, a different arrangement from paying rent on an unowned share.
• Northern Ireland’s Co-Ownership lets eligible buyers purchase a share and rent the remainder under its own rules.

Lifetime ISA

A Lifetime ISA can help eligible savers buy their first home or save for later life. You normally need to be UK-resident and aged 18 to 39 to open one, with your first payment before 40; specified Crown-service exceptions apply to residence. You can contribute up to £4,000 per tax year until age 50 and receive a 25% government bonus, up to £1,000 a year.

For a charge-free first-home withdrawal, the UK property must cost no more than £450,000, be intended as your main home and be bought with a qualifying mortgage. At least 12 months must have passed since your first payment. The provider pays the money directly to your conveyancer or solicitor. Each buyer using a LISA must meet its conditions.

Other withdrawals normally incur a 25% charge on the amount withdrawn, including the bonus, which can reduce your original savings. Exceptions include withdrawals from age 60, qualifying terminal illness and death. Check the withdrawal conditions before committing the money to a purchase.

3. Discuss your mortgage options

An early mortgage discussion can help you prepare your budget and documents.

A mortgage adviser can review your income, spending, deposit and credit history, explain possible options and identify documents a lender may need. Ask which lenders and products the adviser considers, what the service includes and whether fees apply. You can also approach lenders directly.

Compare the whole mortgage cost

Look beyond the initial interest rate. Compare monthly repayments, product fees, the initial deal period, early repayment charges and what happens when that period ends. A longer repayment term may lower monthly payments but increase total interest. Your loan-to-value ratio (LTV) affects the products available; it compares the loan with the property’s value. Use a current personalised illustration rather than an old rate example, and consider whether payments would remain manageable if rates rose.

4. Gather documents and obtain an agreement in principle

Requirements vary by lender and circumstances, but commonly include:

• Recent bank statements.
• Payslips and, where requested, a P60 for employed applicants.
• Tax calculations (SA302), tax year overviews or accounts for self-employed applicants.
• Accepted identity documents, such as a passport or driving licence, and proof of address.
• Evidence of your deposit and its source, including any required gifted-deposit declaration and donor evidence.

An agreement in principle (AIP), also called a decision in principle (DIP), is a provisional indication of what a lender might lend based on the information supplied. It can help with your search, but it is not a formal mortgage offer. The lender still needs to assess your full application and the property; changes in income, debts or valuation can affect the decision. Ask whether the AIP involves a soft or hard credit search. MoneyHelper explains the distinction.

5. Make an offer through the appropriate process

Once you have viewed a suitable property, decide your offer limit and clarify what is included in the price. An AIP can support your position, but it does not remove the need for funding and property checks.

In England and Wales, an ordinary offer is usually made through the estate agent, subject to contract. Acceptance alone does not bind either party. In Scotland, involve a solicitor before offering: they submit the formal offer and negotiate the contract through missives. For most homes marketed in Scotland, review the seller’s Home Report, which includes a survey and valuation, an energy report and a property questionnaire. Discuss any need for further investigations with your solicitor or surveyor.

In Northern Ireland, use a local solicitor to guide you through its offer and contract process. Do not assume that an accepted offer or a signed document has the same effect at every stage across the UK.

6. Apply for the mortgage and complete legal and property checks

Submit the full mortgage application with accurate, current information. The lender checks your circumstances and the property before deciding whether to issue an offer. Read any offer conditions and expiry date, and tell your adviser or lender about relevant changes before completion.

Three different checks protect different interests:

• Conveyancing: your solicitor, or a licensed conveyancer where appropriate, investigates title, searches, rights, restrictions and replies to enquiries. They explain the contract and any unresolved legal issues.
• Lender valuation: the lender assesses whether the property is suitable security for the loan. This is not a detailed condition survey for you.
• Buyer’s survey: a surveyor assesses the condition at the level you commission. Choose a suitable homebuyer survey and investigate significant defects or repair costs before legal commitment. In Scotland, consider the Home Report alongside any additional checks advised.

These tasks often overlap. The government’s home-buying guide for England and Wales explains the distinction between legal searches, valuation and survey. Your legal adviser should confirm that funding, enquiries and important survey issues are resolved before you become contractually bound.

7. Understand when the purchase becomes legally binding

England and Wales: exchange of contracts makes an ordinary purchase legally binding. The completion date is agreed by exchange, not first decided afterwards. Your conveyancer confirms the contract deposit and arranges exchange when you are ready; withdrawing afterwards can have serious financial consequences.

Scotland: the binding point is the conclusion of missives, when solicitors have agreed the contract terms. Settlement and the agreed date of entry are separate from that commitment.

Northern Ireland: follow your solicitor’s advice on contract formation. The Law Society of Northern Ireland’s consumer guide explains that the contract forms when the buyer or their solicitor receives the buyer’s formal offer accepted by the seller. Completion is separate: the seller’s solicitor confirms receipt of the completion money before the keys can be released.

Confirm buildings insurance arrangements before legal commitment. In England and Wales, cover is commonly needed from exchange; in Scotland, timing depends on the missives. The contract, lender requirements and tenure matter, including any block policy for a flat. Ask your legal adviser when responsibility passes to you rather than assuming cover starts on moving day.

8. Complete the purchase and collect the keys

On completion, or settlement in Scotland, the legal representatives arrange the required transfer of funds and the keys are released under the agreed terms. Your solicitor or conveyancer handles the relevant tax return and registration work. Plan removals around their confirmation, as chains and delayed funds can affect the handover time.

Keep your completion statement, mortgage documents, guarantees and insurance details together. Record meter readings and arrange utilities and the relevant council tax or domestic rates account for your new home.

If you would like help preparing for a mortgage, contact Extend Finance to discuss your circumstances, deposit and next steps.