First-Time Buyer Guide: Everything You Need to Know about Purchasing Your First Home

Buying your first home is an exciting step, but it can also feel overwhelming. This first-time buyer guide covers the key things you need to know, from understanding what it means to be a first-time buyer, to managing costs, exploring available support, and deciding what’s right for you.

When you’re ready, you can move on to our step-by-step buying journey, explore the benefits of new builds, or find the right location for your needs.

What Is a First-Time Buyer?

The term ‘first-time buyer’ refers to someone who has never owned a home before. You cannot be a first-time buyer twice. Therefore, if you have owned a property previously, you won’t qualify as a first-time buyer. 

If you’re buying with someone else, the same rule applies to them if they have owned a property in the past, even if the previous property has been sold.

However, there are a few exceptions to this rule, such as if you have inherited property.

Inherited Property Recipients

If you have inherited residential property, even a share, you are no longer considered a first-time buyer under HMRC rules.

Commercial Property Owners

You may still qualify as a first-time buyer if you have only ever owned commercial property with no residential accommodation attached. 

Understanding Mortgages, Deposits and Buying Costs

First time buyers reading a mortgage agreement

How Do Mortgages Work?

It’s important to set realistic expectations for what you can afford when purchasing your first home. To make this easier, the total figure is usually split into two funds: the deposit (an initial upfront payment) and the mortgage (a loan repaid over a select period).

Typically, the maximum amount you can borrow for a mortgage is determined by a bank or mortgage lender. This is calculated using a range of factors, including your annual income or combined annual income, should you plan on purchasing your first home with a partner.

It’s worth noting that you will be required to repay the final figure in monthly instalments, so make sure this stays within your means. 

We have a mortgage payment calculator where you can also find more information on mortgages. However, you should use this as an illustrative estimate; organisations and individuals are NOT permitted to give mortgage advice if they are not FCA-authorised (or properly exempt/appointed). Mortgage advisors can provide specialist advice and support that’s tailored to your situation.

Types of Mortgages

There a several different types of mortgages available, depending on your circumstances and requirements. You should research each option thoroughly and if needed, seek expert advice to find which one fits your needs and tolerance.

More information on these steps is available here:

How Much can you Borrow

The amount you can borrow will depend on a number of factors, such as your:

  • Income (or joint income if applying with a partner)
  • Living expenses
  • Deposit (% of overall house price)
  • Credit profile
  • Job type (i.e. permanent salaried job, self-employed or commission based)

Repayments

The monthly cost of repayments will vary according to factors including:

  • Loan amount
  • Interest rate
  • Mortgage term
  • Type of mortgage (repayment or interest only)  

Understanding what you can afford is one of the most important steps when buying your first home. Our mortgage calculator can help you estimate monthly repayments based on your deposit, property value and term.

How the Mortgage Application Process Works

Fist time buyer paperwork with a woman's hand picking up paper

The mortgage application process usually begins with a lender assessing how much you can borrow based on your income, expenses and credit profile. Once you’ve found a property, you can apply for a mortgage in principle, followed by a full application.

The lender will then carry out checks, including a property valuation, before issuing a formal mortgage offer. This process typically runs alongside the legal stage of buying your home.

How Much Deposit Does a First-Time Buyer Need?

A first-time buyer will usually need a deposit of at least 5% of the property’s value. 

Most lenders prefer deposits of 10–15%, as these reduce risk for the lender.

  • Saving a larger deposit offers several advantages:
  • Better mortgage rates — lower loan-to-value (LTV) means cheaper borrowing.
  • More lender choice
  • Lower monthly repayments
  • Reduced risk of negative equity — protects you if house prices fall.

Low-deposit Options Explained

Saving a large deposit can be one of the biggest challenges when buying your first home. However, there are options available that allow you to buy with a smaller upfront cost.

Some lenders offer mortgages with deposits as low as 5%, supported by schemes such as the Mortgage Guarantee Scheme. These can help make homeownership more accessible if saving a larger deposit is a barrier.

This can help you get onto the property ladder sooner. However, it typically comes with higher interest rates compared to larger deposits.

What Are the Upfront Costs of Buying a Home?

Buying a home involves more than just saving for a deposit. Before you move in, there are several additional costs to budget for, including legal fees, mortgage-related costs and, in some cases, Stamp Duty Land Tax. Understanding these costs early can help you plan with confidence and avoid unexpected expenses during the buying process.

Reservation Fees

Once you've chosen your ideal development and your perfect home, you'll usually be asked to complete a reservation agreement and pay a reservation fee to secure the property. The amount varies depending on the development and property type.

Legal and Conveyancing Fees

Legal Fees

Legal fees are paid to a solicitor/conveyancer to cover the costs of the legal work associated with buying your property. Your solicitor will review contracts, conduct searches and help ensure the transaction progresses smoothly. They manage the legal transfer of ownership from the seller to the buyer.

Surveyor’s Fees

A surveyor fee is a fee paid to a licensed surveyor to check that the property complies with building standards and regulations. This includes inspecting the property for signs of structural damage, plumbing issues, and damp.

Mortgage and Arrangement Fees

Some mortgage products include arrangement fees or booking fees. Depending on your lender, these may be paid upfront or added to the mortgage balance. 

Your lender may also require a mortgage valuation to confirm the property's value before issuing a mortgage offer.

It's worth comparing the overall cost of different mortgage products rather than focusing solely on the interest rate. 

Removal and Moving Costs

You may also need to budget for practical moving costs, including removals, storage, furniture, white goods and any additional purchases needed to help you settle into your new home.

A couple buying their first home

Do First-Time Buyers Pay Stamp Duty?

  • As of 2026, first time buyers do not have to pay Stamp Duty Land Tax (SDLT) on a home worth up to £300,000.
  • If the home is valued between £300,001 and £500,000, you will be required to pay 5% on the portion above £300,000.
  • If the property costs more than £500,000, you will not qualify for first time buyer relief.

Stamp Duty Land Tax applies to England and Northern Ireland. Scotland and Wales have separate systems (LBTT and LTT).  

We have created a full guide to stamp duty, if you need further information.

Government Schemes and Support Available in 2026 

Help to Buy is no longer available in England, but first-time buyers still have options including:

As eligibility criteria vary, it's worth researching the options available to you and seeking independent financial advice before making any decisions

 Support Available from Berkeley to Help you Buy

On selected Berkeley homes, Own New: Rate Reducer may be available. This scheme gives eligible buyers access to lower mortgage interest rates for a fixed period, helping to reduce monthly mortgage payments during the early years of homeownership. 

Can You Afford to Buy a Home? 

Monthly Cost of Owning a Home

Owning a home comes with ongoing costs beyond your mortgage repayment. Depending on your property and location, these may include:

  • Council tax
  • Utilities
  • Buildings and contents insurance
  • Broadband and other household services
  • Service charges for apartments or managed developments

Understanding these regular costs can help you build a realistic picture of long-term affordability.

Budgeting Beyond the Deposit

While the deposit is one of the biggest upfront costs, it’s important to plan for additional expenses such as legal fees, moving costs and setting up your new home.

Thinking beyond the initial purchase helps ensure a smoother transition into homeownership.

Common Affordability Mistakes

Some buyers underestimate the full cost of homeownership or stretch their budget too far based on maximum borrowing limits.

Taking a balanced approach, factoring in both upfront and ongoing costs, can help you buy more confidently.

What to Consider Before Buying Your First Home

 First time buyers purchasing a new home

Choosing the right home is about more than just the property itself. Taking time to think about your lifestyle, location preferences and future plans can help you make a more confident decision.

Location and Transport links

While you can change the look of your home, you can’t change its location. Think about where you like to spend your time and explore the surrounding areas to find options that fit your price range. 

For example, Reading can provide you with convenient transport links into London, with connections such as the Elizabeth Line. Plus, you’ll have access to nearby neighbourhoods such as Ascot and Slough, should you want a change from the big city.

Differences Between Freehold and Leasehold Ownership

You’ll also need to understand whether a property is freehold or leasehold, as this affects ownership rights and any ongoing obligations. 
Freehold means you own the property and the land outright, while leasehold means you own the property for a fixed period but not the land it sits on.

Future Needs

Think longer-term. Can you see yourself living in the property in 3-5 years?  Do you plan to start a family? Might you need to work from home at some point? Your first home is likely to be a big investment, so consider how the space in your property will flex to accommodate any future plans.

Weigh up the pros and cons of one or multiple-bedroom homes, should this be an option within your budget.

Key Questions to Ask Yourself Before Buying a Home

Before committing to a property, it’s worth asking yourself a few key questions:

  • Can I comfortably afford both upfront and monthly costs?
  • Does the property suit my current lifestyle and future plans?
  • Is the location right for my daily needs and commute?
  • Am I confident in the long-term value of the property?

Common First-Time Buyer Mistakes to Avoid

  • Underestimating the full cost of buying and owning a home
  • Skipping research on areas, developments, and property types 
  • Stretching your budget too far based on maximum borrowing limits

Ready to Take the Next Step?

Browse our developments to find a home you are interested in and book a viewing with one of our Sales and Marketing advisors.