Buying a home, step by step
Buying a home in the UK, from saving a deposit to the day you get the keys: every step, every cost, and a free calculator for each one.
Quick answer
Buying a home in the UK usually follows the same path: save a deposit, check what lenders could lend you, get a mortgage in principle, find a home and make an offer, then apply for the mortgage while your solicitor does the legal work. On completion day you get the keys.
Plan for more than the deposit. Stamp Duty, legal fees, a survey and any mortgage fees all need paying too, and the size of your deposit decides your loan to value band, which decides the rates you are offered.
Updated today
Your deposit sets your band
- 95% LTV5% deposit. The minimum most lenders need.
- 90% LTV10% deposit. More lenders, lower rates.
- 85% LTV15% deposit. Noticeably lower rates.
- 75% LTV25% deposit. Some of the lowest rates.
- 60% LTV40% deposit. Usually the very lowest rates.
Buying a home in Theo
- How much could I borrow?From lenders’ criteria
- Stamp DutyEngland, Scotland, Wales
- RepaymentsMonthly cost and interest
- Deposit and LTVWhat each band saves
Cash you need to buy
- DepositUsually at least 5% of the price.
- TaxStamp Duty, LBTT or LTT, if any.
- LegalAround £1,500, as an estimate.
- SurveyAround £600, as an estimate.
Saving for a deposit?
Theo tracks it against a target date.
Average fixed rates by LTV band today
| Loan to value | Average 2 year fix | Average 5 year fix |
|---|---|---|
| Loading | ||
| Deposit | Loan to value | What it usually means |
|---|---|---|
| 5% | 95% | The minimum most lenders need |
| 10% | 90% | More lenders, lower rates |
| 15% | 85% | Noticeably lower rates |
| 25% | 75% | Some of the lowest rates |
| 40% | 60% | Usually the very lowest rates |
The bigger the deposit, the lower the rate
Each step down in loan to value usually brings a lower rate. The calculators show what each one saves.
Buying a home, step by step
- Save your deposit. Most lenders need at least 5% of the price, and a bigger deposit opens up lower rates. See how to save for a house deposit.
- Check what you could borrow. Lenders look at your income, your outgoings and your deposit. See how much you can borrow.
- Get a mortgage in principle. A lender’s early indication of what it may lend, which estate agents often ask to see. See mortgage in principle.
- Find a home and make an offer. Once it is accepted, instruct a solicitor or conveyancer.
- Apply for the mortgage. The lender checks your documents and values the home. You may also want your own survey.
- Exchange and complete. Contracts are exchanged, then on completion day the money moves and you get the keys. Stamp Duty is paid around this time.
What buying a home costs
On top of the deposit, budget for property tax, legal fees, a survey and any mortgage fees. In England and Northern Ireland, first time buyers pay no Stamp Duty on homes up to £300,000. See Stamp Duty for first time buyers for your figure, and Scotland and Wales, which have their own taxes.
| Cost | Amount |
|---|---|
| Deposit (10%) | £30,000 |
| Stamp Duty | £0 |
| Legal fees (estimate) | £1,500 |
| Survey (estimate) | £600 |
| Total cash needed | £32,100 |
Your deposit and your rate
Lenders price mortgages in loan to value bands: 95%, 90%, 85% and so on down to 60%. Moving down a band usually brings a lower rate, so a slightly bigger deposit can cut your monthly payment for years. The live table above shows today’s averages for each band, and Theo’s deposit planner shows exactly how much you need to reach the next one.
Help with a deposit
Family can give you some or all of the deposit as a gift, and lenders will want a letter confirming it is not a loan. A Lifetime ISA adds 25% to what you pay in, up to £1,000 a year, for first homes up to £450,000, and the account must be open for 12 months before you buy. Shared ownership lets you buy a share of a home with a deposit on just that share. An FCA-authorised mortgage adviser can tell you which lenders accept each of these.
Your monthly payment
Your payment depends on the amount you borrow, the rate and the term. The mortgage repayment calculator shows yours, the total interest and what overpaying could save. Before you fix, see whether to fix for 2 or 5 years and which way rates are heading.
Common questions
What are the steps to buying a home?
How much deposit do I need to buy a home?
What costs are there when buying a home?
How long does buying a home take?
Do first time buyers pay Stamp Duty?
Keep exploring
Stamp Duty for first time buyersWhat you pay in England, Scotland and Wales.
How much can I borrow?From lenders’ published criteria, not 4.5 times.
Mortgage repayment calculatorYour monthly payment, the interest and the term.
Mortgage in principleWhat it is, when to get one and what it needs.
How to save for a house depositThe whole journey in five phases.
Remortgaging explainedHow it works, when to start and what it costs.
Theo App Ltd is not authorised by the Financial Conduct Authority and does not give mortgage advice. This page is information only and is not a recommendation. Averages are a guide to the market, not offers. Speak to an FCA-authorised mortgage adviser about your own circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.