First time buyers
One of life’s most exciting moments is walking through your own front door for the first time. So let us walk you through the steps that will get you from dreaming it to actually doing it.
Everything you need to know before buying your first home
Like anything you haven’t done before, it probably seems more daunting than it really is. The good news is, you won’t be in a buying chain, so the buying process should be easier than when you’re trying to sell and buy at the same time.
The other good news is that at Charles Church we’ve done this plenty of times before, so we’ll be right with you, explaining the process and keeping things moving at every stage.
First things first, let’s answer some questions we’re often asked by first time buyers.
Who counts as a first time buyer?
You’ll generally be considered a first time buyer if you’re buying a home for the first time and you haven’t previously owned a residential property in the UK or abroad. Even if you meet that criteria, you won’t be classed as a first time buyer if you’re buying with someone else who owns or who has ever owned a residential property.
The criteria may differ slightly if it’s being determined for Stamp Duty purposes, mortgage lending or qualifying for a first time buyer buying scheme. So always check with the relevant business or organisation.
How much can I borrow as a first time buyer?
Unless you’re lucky enough to have money to buy a home outright, you’ll need to borrow money to pay for it. That’s where the mortgage comes in – a loan that pays for the property (along with your deposit), which you pay back to your lender over an agreed period of time, plus interest.
The actual amount you can borrow will depend on your own circumstances. Mortgage lenders will look at your income, outgoings, credit history, whether you’re buying on your own or with others and how much deposit you have. They won’t want to lend more than you can afford to pay back.
How do I know what I can afford?
Before you start looking for your dream home, it’s important to work out how much you have to spend, and how much you can realistically afford to repay each month.
Ask yourself:
1. What buying costs do I need to factor in?
Buying a house comes with some unavoidable costs. Make sure you’ve factored these in when working out how much you have for a deposit.
- Mortgage arrangement fees
- Survey fees
- Land Registry fees
- Solicitors and conveyancing fees
- Stamp Duty
- Removal company costs (optional)
- Furniture, appliances and decor
2. How much do I need to live on?
Write down your monthly income, then make a note of your typical outgoings. If you think these would change after the move, try to reflect your future situation. It might be useful to add in a little contingency for unexpected expenses.
How much is left over? The answer should give you an idea of what you can afford in monthly mortgage repayments, and therefore how much you can afford to borrow.
How much will I need for a deposit?
Your deposit will need to be at least 5% of the value of your new home, but it’s more likely to be 10% or 20%.
Let’s say a lender is asking for a 10% deposit and you have a budget of £20,000, you’d be able to look at properties costing up to £200,000.
The bigger your deposit, the lower the Loan to Value (LTV). LTV is the percentage of the property value covered by the mortgage. A lower LTV will usually give you access to better interest rates. A higher LTV will usually have a higher interest rate, so will cost more in interest payments.
If you want to increase your deposit, buying schemes such as our Deposit Boost are a great way to reduce your LTV and make your monthly repayments more affordable.
Do first time buyers pay Stamp Duty?
That depends on the value of the property you’re buying. From April 2025, if you’re a first time buyer paying less than £300,000 for your home, then no, you won’t pay Stamp Duty. Anything between £300,001 and £500,000 and the stamp duty will kick in. (If you’re not a first time buyer, the threshold for paying stamp duty is lower, at £125,000.)
If the property you’re buying costs more than £500,000 you won’t be able to claim the first time buyer Stamp Duty rate.
Stamp duty thresholds and rates for first time buyers
|
Property value |
First time buyer Stamp Duty rate |
|
Up to £300,000 |
0% |
| £300,001- £500,000 |
5% |
Buying schemes: what’s available for first time buyers
We know it isn’t easy getting on the property ladder. Which is why we have several schemes designed to help you buy your first home. From helping you get started with a 5% deposit, to reducing your monthly mortgage payments, we’re sure we can find the perfect solution for you.
The buying process: what to expect
Buying a home sounds simple enough, but it involves quite a bit of work behind the scenes.
While you probably don’t need every detail of the financial and legal processes, we recommend getting familiar with the buying journey. True, it’s not as fun as choosing colour schemes and deciding who to invite over first, but knowing what’s happening when should put your mind at ease when things go quiet for a while.
And you can rest assured we’ll keep you posted with the progress of your new Charles Church home every step of the way. From updates on the build, to decisions on fixtures and fittings and support even after you’ve moved in.
Ready to find your first home?
If you’ve done your sums and you have an idea what you can afford, it’s time to start looking for your dream first home.
Find your new home