Start with the numbers, not the property listings

Before you fall in love with a kitchen you cannot afford, work out what a lender is realistically likely to offer you. Most UK mortgage lenders will lend somewhere between four and four and a half times your annual household income, though this varies with your outgoings, credit history and the type of mortgage. Add your deposit to that figure and you have a rough ceiling for your purchase price.

Deposits are usually described as a percentage of the property price. A 5% deposit will get you onto the ladder but comes with higher interest rates; 10% or 15% unlocks noticeably better deals. There is no single "best" percentage — the right one is whatever leaves you with savings intact afterwards.

Budget for the costs that sit alongside the price itself:

• Deposit, paid on exchange of contracts
• Stamp Duty Land Tax, if your purchase exceeds the first-time buyer threshold (thresholds change, so check the current rules before you commit)
• Solicitor or conveyancer fees
• Survey and lender valuation fees
• Mortgage arrangement or product fees
• Removals, buildings insurance and the first round of furniture

As a rule of thumb, allow a few thousand pounds on top of your deposit. Buyers who forget this are the ones who run out of money at the worst possible moment.

Where a deposit can come from

Most first-time buyers save their deposit, and a Lifetime ISA is one of the most efficient ways to do it. You can pay in up to £4,000 each tax year and the government adds a 25% bonus, up to £1,000 a year. Two important conditions: the account must be open for at least twelve months before you use it, and there is a cap on the property value you can buy with it.

Gifted deposits from family are common and perfectly acceptable. Your lender will usually ask the giver to sign a declaration confirming the money is a gift, not a loan, and your solicitor will need to see the source of funds for anti-money-laundering checks. Shared ownership and other low-deposit schemes exist across the UK, though availability and rules differ between England, Scotland, Wales and Northern Ireland, so check what applies where you live.

What affordability checks actually look at

A mortgage is not just about income. Lenders want to see that you can absorb a rate rise or an unexpected bill. They will typically review three to six months of bank statements and scrutinise:

• Regular commitments such as loans, car finance, credit card balances and buy-now-pay-later plans
• Essential spending, including childcare, commuting and council tax
• Your credit report, including any missed payments or defaults
• Your employment status — permanent employees are simplest, while self-employed buyers usually need two to three years of accounts

Small habits make a real difference. Being on the electoral roll, paying every bill on time and clearing overdrafts before you apply all help. Lenders also stress-test your budget against a higher interest rate than the one you are being offered, so a comfortable-looking repayment today needs to still look comfortable at 7% or 8%.

Making an offer and instructing your team

Get a mortgage agreement in principle first — it is a soft check of your finances and shows estate agents you are a serious buyer. Once you have viewed enough properties to know what represents value locally, make your offer in writing, with your position explained clearly.

When the offer is accepted, the estate agent issues a memorandum of sale. Now the real work starts. You instruct a solicitor or licensed conveyancer, submit your full mortgage application, and pay for the lender's valuation — a basic check that the property is worth what you are paying, not a condition report.

Surveys, searches and legal fees explained

The lender's valuation protects the lender, not you. Commission your own survey, and choose the level that suits the building:

• Condition survey: a brief visual check, suitable for a modern, seemingly sound property
• Homebuyer report: the middle option, covering defects, repairs and valuation
• Building survey: the most detailed, essential for older, unusual or clearly neglected homes

Your conveyancer will run searches — local authority, environmental, water and drainage, and sometimes mining or flood checks — and raise enquiries about anything the title or survey throws up. If the property is leasehold, they will examine the lease length, ground rent and service charges, and flag anything that could trouble a future buyer or lender.

Legal fees for a straightforward freehold purchase commonly sit in the region of £900 to £1,800 including VAT, plus disbursements such as searches and bank transfer fees. Leasehold transactions cost more. Budget a further £500 to £800 for a survey.

From offer accepted to completion, expect eight to twelve weeks. On exchange of contracts you pay your deposit — usually 10% — and the deal becomes legally binding. Completion, when you get the keys, typically follows within a week or two.

The first year in your new home

Keep a cash buffer after completion. The first months bring council tax, utility set-up, buildings insurance, small repairs and the things you did not know you needed. Resist the temptation to spend every last penny on furniture. A modest emergency fund is what turns a house into a home you can actually relax in — and it is the same habit that will serve you well for every mortgage payment ahead.