First-time buyer essentials: What you need to know
First-time buyers accounted for approximately 36% of all mortgaged property purchases in the UK in 2025, making them the largest single group of buyers in the market.
The conditions available to first-time buyers in 2026 are more constructive than they were two years ago in several important ways, but the process remains complex and the decisions made at the beginning can influence the entire purchase journey.
Understanding the essentials before you start searching is one of the best ways to make the buying process smoother and more manageable.
Establish your budget before viewing properties
The most important step before arranging viewings is establishing an accurate, lender-verified budget. Online mortgage calculators can provide a useful indication, but they do not consider every factor that lenders assess. Income, existing borrowing, childcare costs and regular financial commitments can all influence how much you are able to borrow.
Speaking with a whole-of-market mortgage broker before beginning your property search can help you understand your realistic borrowing position. A broker can compare products from multiple lenders and assess your circumstances to provide a clearer picture of the mortgage options available to you.
The figure confirmed through this process gives you a more reliable budget to work with and helps you focus your search on properties that fit your financial position.
Understand the full cost of buying
The purchase price is the biggest cost involved, but it is not the only one. First-time buyers should consider the additional expenses that come with purchasing a home.
These can include stamp duty where applicable, a property survey, solicitor and conveyancing fees, buildings insurance, removal costs and any immediate repairs, improvements or installation costs required after moving in.
Planning for these expenses before making an offer can help avoid unexpected financial pressure during the transaction and ensure you are prepared for the true cost of becoming a homeowner.
Get a mortgage in principle before making an offer
A mortgage in principle, also known as a decision in principle or agreement in principle, is an indication from a lender that they may be willing to provide a certain level of borrowing based on an initial assessment of your finances.
While it is not a guaranteed mortgage offer, it shows sellers and estate agents that you are a prepared buyer with evidence that your finances have been reviewed. In competitive situations, this can help demonstrate that you are ready to proceed.
A mortgage in principle arranged through a broker will often involve an initial credit check rather than a full mortgage application, depending on the lender and process used.
Understanding the current first-time buyer market
Rightmove’s recent House Price Index recorded the average UK asking price at £378,304, but the typical first-time buyer market operates at a lower price level. Recent ONS data shows the average first-time buyer purchase price at around £165,000, reflecting the areas and property types that are most accessible to new buyers.
First-time buyer demand has remained relatively resilient despite higher borrowing costs, reflecting the strong motivation of buyers taking their first step onto the property ladder.
What to prioritise in your search
When choosing your first home, focus on the factors that will have the greatest long-term impact. Location, access to essential services, property condition, EPC rating and local amenities are all important considerations.
Decorative features and personal style can usually be changed over time. Location, structural condition and energy efficiency are much harder to alter, so they should carry greater weight when deciding which property is right for you.
Ready to buy your first home? Talk to our team today
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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