First-Time Buyer Tips: What You Wish You Knew Before Buying

Hey future homeowners!

Buying your first home is a thrilling milestone, filled with dreams of settling into a space that’s truly your own. But the journey is also full of surprises, big decisions, and a few lessons that often only become clear in hindsight. At Conveyd, we aim to make the home-buying process as smooth and stress-free as possible. Here’s what you need to know, with some illustrative numbers to help you plan.

1. The Costs Go Beyond the Deposit

When saving up for your first home, it's easy to focus heavily on the deposit. For most first-time buyers in the UK, the deposit will be about 5% to 20% of the property’s purchase price. For example, if you’re buying a £300,000 home, this means you’ll need between £15,000 and £60,000. But the deposit is just the beginning. Here are some additional costs to budget for:

• Stamp Duty: First-time buyers in England and Northern Ireland are exempt from Stamp Duty on the first £425,000 of a property’s purchase price, with 5% payable on the portion between £425,001 and £625,000. So, for a £500,000 home, you’d pay £3,750 in Stamp Duty.

• Solicitor/Conveyancer Fees: Once your offer is accepted, you'll need a solicitor or conveyancer to handle the legal work so you can get the keys to your new home. Expect to pay upwards of £1,500, depending on the cost of the property. Beware of cheaper options, you get what you pay for.

• Survey Costs: A homebuyer report might cost around £400 to £1,000, while a full structural survey can range from £600 to £1,500.

• Mortgage Arrangement Fees: These can range from £0 to £2,000, depending on the lender and the mortgage product.

• Moving Costs: Professional movers can cost between £500 and £1,500, depending on the distance and amount of belongings.
  

2. Don’t Skip the Survey

It might be tempting to skip the full survey to save money, but it’s an area where cutting corners isn’t advisable. A basic homebuyer report typically costs around £400 to £1,000, but it could save you from thousands of pounds in unexpected repairs later on. For example, discovering damp or structural issues after moving in could set you back £5,000 to £10,000 or more in repairs.

3. It’s Okay to Walk Away

Falling in love with a house is easy, but it's important to keep a level head. For instance, if a house requires £20,000 worth of repairs that you can’t afford, or if the contract terms are unfavourable, it’s okay to walk away. While it may be disappointing, it’s better to move on and find a home that won’t stretch your budget or come with unwelcome surprises.

4. Understand the Mortgage Options

The mortgage process can be overwhelming, with many options to choose from. For example:

• Fixed-Rate Mortgages: Offer stability, with the same monthly payment for 2, 5, or even 10 years. Interest rates typically range from 3% to 6%.

• Variable or Tracker Mortgages: The interest rate fluctuates with the Bank of England base rate. These could start lower than fixed rates but might rise unexpectedly, affecting your monthly payments.

  
  

A typical first-time buyer mortgage might be 3.5 times your salary, so if you earn £50,000 a year, you might borrow around £175,000. Over 25 years at a 4% interest rate, your monthly payment would be about £925. Understanding the terms and conditions fully is crucial, as a difference of just 0.5% in interest rates can mean hundreds of pounds more or less per year.

We recommend getting a Mortgage Agreement in Principle first. This will help you understand your budget and how much you can borrow.

5. Location, Location, Location

While the house itself is crucial, the area it’s in is just as important. For example:

• Commute: A longer commute might mean cheaper housing but higher travel costs—an extra 30-minute commute could cost you £2,000 a year in travel expenses.

• Proximity to Schools: Living near good schools can increase property values. A house within the catchment area of a top school might cost £20,000 to £50,000 more than similar properties elsewhere.

• Neighbourhood Vibe: It’s worth spending time in the area at different times of the day to get a feel for it. A lively neighbourhood might be great for some but not ideal for others who prefer peace and quiet.
  

6. The Emotional Rollercoaster is Normal as a First Time Buyer

Buying a house is a big deal, and it’s normal to feel a range of emotions. On average, buying a property in the UK takes about 5 months from the offer to completion. This process, called conveyancing, is managed by your conveyancer or solicitor to handle the legal exchange and finalise everything. It’s common to feel anxious about mortgage approval, the survey results, and other potential delays. Don’t be afraid to lean on friends, family, and professionals for support during this period.

You should know about being gazumped:

One of the most frustrating experiences a buyer can face is being gazumped—when another buyer makes a higher offer after yours has been accepted, and the seller chooses to take it, leaving you back at square one.

Gazumping is legal in England and Wales, though less common in Scotland due to different property laws. Gazumping is becoming an increasingly common issue for homebuyers in the UK, with 37% of buyers experiencing it in 2024. This represents a 6% increase over the past two years.

To protect yourself:

• Move Quickly: Once your offer is accepted, act swiftly to secure your mortgage and instruct your solicitor. The faster you move, the less opportunity there is for another offer to intervene. It is important you don't go for cheaper quotes. Be more deliberate on who you choose as your conveyancers/solicitors.

• Consider a Lock-In Agreement: An exclusivity agreement can reduce the risk of gazumping by committing both parties to the sale for a set period.

• Get Insurance: Homebuyer protection insurance can cover some costs if gazumping occurs.

  
  

If it happens, it's disappointing but could be a blessing in disguise. The property market is competitive, so always have backup options in mind.

7. Ask Questions—Lots of Them

It’s natural to have questions during the home-buying process. For instance, you might wonder:

• What does "subject to contract" mean? (It means that the agreement isn’t legally binding yet, giving you time to reconsider.)

• What’s the difference between freehold and leasehold? (Owning the land versus leasing it for a certain number of years.)

• What should I expect on completion day? (Typically, you’ll receive the keys once the money has been transferred and the property is legally yours.)

Asking questions not only helps you feel more confident but can also prevent costly misunderstandings down the line.

Got questions and no one to ask? Don’t worry! We’re offering our beta users exclusive access to a platform where you can get answers right at your fingertips. Sign up here to be among the first to use it!

8. Finding Your Home: Where to Start

Embarking on your home-buying journey can feel overwhelming, but knowing where to start makes it much easier. Begin by browsing popular property websites like Rightmove, Zoopla, Purple bricks etc. These platforms offer a comprehensive list of available properties and useful filters to narrow down your search based on location, price, and other criteria.

Additionally, consider reaching out to local real estate agents. They often have access to listings that aren’t publicly available yet, giving you a head start on finding your dream home. Agents can also provide valuable insights into the neighbourhoods you’re interested in and offer guidance throughout the viewing process.

When viewing homes, make sure to take your time. Visit the property more than once, if possible, and at different times of the day to get a true feel for the area and the home itself. Don’t hesitate to ask the seller or agent detailed questions about the property’s history, condition, and any recent renovations.

While it isn’t always easy, stepping into your own home for the first time is an incredible feeling—one that makes every hurdle along the way worth it. Keeping an eye on the ultimate goal can help keep you motivated, even when things get tough.

Ready for more guidance on your home-buying journey? At Conveyd, we’re excited to introduce our self-serve platform designed to provide you with continuous support every step of the way. By joining our waitlist, you'll gain access to tailored advice, and tools that will help you navigate the complexities of buying your first home with confidence. Don’t miss out on this opportunity to make your home-buying experience as smooth and informed as possible. Click here to join the waitlist and get ready for a wealth of knowledge right at your fingertips!