First-Time Buyer Workbook
Buying your first home is exciting, but it can feel like a bit of a maze. This page gives you the full guide in an easy-to-read online format. If you’re the type who likes to scribble notes, highlight key steps or work things through with a pen in hand, you can also download the workbook version to keep by your side.
However you like to learn, this guide will walk you through the whole journey – from budgeting and credit scores to solicitors, surveys and finally getting the keys.
No email wall, no fuss – just a straightforward guide to help you feel more confident about buying your first home.
Most first-time buyers dip in and out as they go. Use the phases to jump to what matters right now — and come back when you’re ready.
Congratulations on taking the exciting step toward becoming a homeowner! As the Directors of Need Financial Planning we're here to support you every step of the way on your journey to owning your dream home.
We understand that the path to homeownership involves more than just finding the right mortgage. It's about making informed decisions, staying on top of your finances, and reaching those important milestones. That's why we've produced this First Time Buyers Workbook – a toolkit designed to help you navigate all aspects of this adventure.
Budgeting Made Simple: In the sections ahead, you'll find practical tools like budget planners to help you manage your finances effectively. We believe that a well-thought-out budget is the foundation of successful homeownership.
Debt Ratio Sheet: Managing debt is a key part of the homebuying process. Our Debt vs Income calculator is a handy resource to help you assess and understand your current debt situation.
Savings Tracker: Saving for a deposit and other homeownership costs is a significant aspect of your journey. The digital resource here will illustrate how your savings plan will progress over time.
Remember, the goal is not just to get you into a home but to ensure that you can comfortably afford and enjoy your homeownership experience.
If you ever have questions or need guidance, our team at Need Financial Planning is just a call or email away. We're here to provide the support and expertise you need to make informed decisions and achieve your homeownership dreams.
James & Rob
Intro Call (New Clients)
A chance for us to get to know you (and vice versa!), what you're hoping to achieve and any future goals that you may have.
Strategy Call
A deeper conversation where we review your mortgage goals, financial situation and eligibility.
Finding the Right Mortgage
We research the whole market to find the most suitable product based on your needs.
Getting the Green Light
We secure your Decision in Principle (DIP) with your chosen lender.
The Hunt Begins!
You now know your budget and can begin house hunting confidently.
Offer Accepted
You found the perfect property — your offer has been accepted!
Application Submitted
We handle the full application process and all admin for you.
Protection Recommendation
Based on your circumstances, we'll recommend a suitable protection plan to ensure you can stay in your new home should the worst happen.
Property Valuation
The lender checks the property meets their lending criteria.
Mortgage Offered
Your application is approved and your formal mortgage offer is issued.
Legal Choreography
Your solicitor handles the legal work including exchange and completion dates.
The Keys are Yours!
Funds are transferred, the purchase completes — welcome to your new home!
Tidy up your numbers, understand your credit position, and get a realistic deposit plan in place.
A clear breakdown of what to budget for – before, during and after buying
Buying a home involves more than just the purchase price. Some costs are paid upfront, others appear during the legal process, and some only start once you’ve moved in. Knowing what to expect early on helps avoid last-minute stress.
Deposit
Typically 5%–20% of the purchase price.
A £250,000 property could mean a deposit between £12,500 and £50,000,
depending on the mortgage you choose.
Stamp Duty
A government tax based on the purchase price and whether you’re a first-time buyer.
Many first-time buyers pay £0, but this depends on price and circumstances.
Use our Stamp Duty Calculator →
Survey & valuation
Independent surveys are different to lender/mortgage valuations and usually cost
£500–£1,500, depending on the level of detail.
Solicitor / conveyancer fees
Usually £1,500–£3,000 but could be more depending on complexity and location.
Searches
Local authority, drainage and environmental searches typically total
£250–£400.
Arrangement (product) fees
Some mortgages charge fees between £0 and £1,500+.
These can often be added to the loan instead of paid upfront.
Valuation fees
Your mortgage lender will value your property to ensure it fits their criteria. Some lenders offer products with a free valuation included, others may charge up to £500.
Mortgage broker fees
We charge a fee of £495 for providing advice and submitting your mortgage application for a property purchase.
Early repayment charges
If you repay or switch your mortgage early, charges may apply during the
fixed or discounted period.
Removal company
Costs vary widely, but typically range from £300 to £1,200+,
depending on distance and property size.
Storage
Temporary storage can cost £50–£200 per month if needed.
Home insurance
Buildings insurance is required by lenders.
Typical costs range from £20–£50 per month depending on property and policy features.
Council tax
A local tax based on the property’s valuation band and your local authority.
Charges vary depending on where you live.
Check council tax bands on GOV.UK →
Utilities & maintenance
Gas, electricity, water, broadband and general upkeep are ongoing
and should be factored into your monthly budget.
Leasehold fees
Ground rent, service charges and management fees may apply
if the property is leasehold.
Not every cost applies to every buyer. We’ll help you understand which ones matter for your situation, and when they’re likely to crop up.
Build a realistic monthly budget that works in real life
As you embark on the journey to buying your first home, one of the most important pillars is a clear, realistic budget. Understanding what comes in, what goes out and what you can comfortably put aside each month gives you the confidence to move forward without feeling like you are guessing.
Think of your budget as the foundation of your homeowning plans. Get this part right and the rest of the process becomes much easier to navigate.
Start by taking an honest snapshot of where you are right now. List all sources of income and every regular outgoing – from rent and utilities to subscriptions, travel, childcare and “little extras”.
Seeing everything in one place helps you spot patterns, cut back on things you no longer value and understand what you can realistically commit towards your home fund.
Once you know your starting point, you can begin to shape your goals. How much do you want to put aside for your deposit, moving costs and a small buffer for new-home essentials?
Break the total down into a monthly figure that actually fits your life. A slightly slower, sustainable plan is often better than aiming too high and feeling discouraged.
Your budget is not just about cutting back – it is about creating space for your future plans. Decide how much you can comfortably set aside each month for your home fund and treat it like a non-negotiable bill to your future self.
Alongside this, consider building a small emergency fund so that life’s surprises do not derail your deposit or your homeowning plans.
This is a simple, interactive taster of our full budgeting worksheet. Pop a few rough figures in to get a feel for how your income, outgoings and potential home fund fit together.
Monthly income
Monthly outgoings
What could go towards your home fund?
Rough amount left each month:
£0
This is just a quick guide. We’ll help you work through a full, detailed budget when we chat.
Prefer pen and paper?
If you’d rather work through your budget in a printed workbook, we’ve got you covered. You can download a clean, ready-to-print version of this budgeting guide and work through it at your own pace.
Check what lenders see before you apply
Your credit report is a key part of your mortgage application. Lenders use it to understand how you have managed borrowing in the past, how much credit you are using today and whether there are any warning signs that might make lending to you higher risk.
The aim is not to have a “perfect” score, but to make sure that what is on your file is accurate, up to date and paints a fair picture of how you really manage your money.
Your credit report is a record of how you have used credit over time. It is held by credit reference agencies such as Experian, Equifax and TransUnion. It shows things like your current and previous addresses, credit cards, loans, mobile contracts, some utilities, and how reliably you have made payments.
Lenders do not see one “universal” score. Instead, they use the information within your report to build their own internal score and to decide whether they are comfortable lending, how much they are prepared to offer and at what rate.
You can (and should) access your credit reports yourself before applying for a mortgage. This gives you a chance to spot any errors or surprises in advance, rather than discovering them at the point of application.
When you apply for a mortgage, the lender will usually run a “hard” search on your credit file. This allows them to look at your existing credit commitments, payment history and any signs of financial stress – such as missed payments, defaults or arrangements to pay.
They are looking for patterns as much as individual events. A one-off late payment a few years ago is very different to repeated late payments across a number of accounts. They will also look at how much credit you have available and how much of it you are currently using.
Lenders combine this picture with your income, outgoings and the size of your deposit to decide whether your application fits within their criteria and risk appetite.
The main factors that influence your credit report are payment history, how much of your available credit you are using, how long your accounts have been open, the mix of credit types, recent searches and whether there are any markers such as defaults, County Court Judgements (CCJs) or insolvency.
Being registered on the electoral roll at your current address is also important, as it helps lenders confirm your identity and stability. High utilisation on credit cards (consistently close to the limit) can also be a red flag, even if you have never actually missed a payment.
Finally, “financial associations” – for example, a joint account or joint loan with someone else – mean that their credit history can influence how lenders view you.
Ideally, you will download your credit reports from the main agencies before we start the full mortgage application. This allows you to check that your personal details, addresses and active accounts are all correct and consistent.
Look out for any accounts you no longer use, old addresses that need updating, or searches and applications you do not recognise. If something looks wrong, it is better to raise it with the lender or credit reference agency as early as possible.
At this stage, it can also be useful to think about tidying up unused catalogues, store cards or credit cards, particularly if they are no longer needed and are simply adding to the total amount of available credit in your name.
There are usually some quick wins. Making sure you are on the electoral roll at your current address, paying at least the minimum on all commitments on time, and avoiding going right up to your credit limits can all help.
If you have the option to clear or reduce smaller balances in the months before you apply, that can also improve how your situation looks to a lender. Try to avoid taking out new credit – such as car finance or buy-now-pay-later – right before applying for a mortgage, unless it is absolutely necessary.
Above all, consistency is key. A few months of steady, on-time payments and sensible use of credit can be more valuable than one-off “quick fixes”.
Life happens. Many people have some form of adverse credit in their past – anything from a late payment through to a default, CCJ or debt management plan. It does not necessarily mean you cannot get a mortgage, but it can affect which lenders are suitable and on what terms.
Being upfront about any issues and giving us the full picture from the start means we can look for lenders whose criteria are more flexible, and avoid applications that are unlikely to be accepted.
If your situation is more complex, there may be value in waiting, rebuilding for a period and then applying when your profile is stronger. We can talk through your options so you can make an informed decision rather than feeling that your past is the whole story.
Setting realistic expectations
Entering the world of homeownership brings a whole new layer of financial responsibility. From saving for your deposit to preparing for the ongoing costs of running a home, it’s crucial to plan ahead and build strong money habits early. This is where a savings tracker becomes an invaluable tool — not just to keep you on course, but to help you make confident, informed decisions as you move toward buying your first home.
Setting clear, meaningful goals makes saving more motivating. Whether you're budgeting for a deposit, legal fees, or new-home essentials, having a structured plan helps you stay consistent and on track.
A savings tracker gives you a clear overview of your income, expenses, and progress. This visibility helps you make more informed decisions and stay confident throughout your mortgage journey.
Unexpected expenses happen. A well-managed savings tracker helps you build a small emergency buffer so your house-buying plans stay steady even when life throws curveballs.
Ready to get a clearer picture of how long your deposit might take? Use the calculator below to map out your personalised savings timeline.
Enter your details above, then click “Calculate forecast” to see your deposit timeline.
Learn how missed payments or defaults may affect your options
If your credit history is not spotless, you are not alone. Many first-time buyers have had a late payment, a period of financial difficulty or something on their file that makes them worry a mortgage will not be possible.
Our role is to help you understand what is actually on your report, how lenders are likely to view it and what you can do next – whether that is applying now with the right lender or putting a short-term plan in place to strengthen your position.
Adverse credit can cover a wide range of situations – from a one-off late payment on a credit card through to defaults, County Court Judgements (CCJs), debt management plans or insolvency. High use of overdrafts and credit cards can also raise questions, even if you have never actually missed a payment.
The first step is simply to get a clear picture. Once we know exactly what is showing on your file, how recent it is and how it came about, we can start to look at how different lenders are likely to view your application.
Not all lenders treat adverse credit in the same way. Some have very strict rules, while others specialise in helping people with a more complicated history – for example, accepting historic defaults or looking at how you have managed things since.
What usually matters most is timing, severity and context. A small, historic blip that has been brought up to date is very different to a recent default where no arrangement has been made. Part of our job is to match your real-life situation to lenders whose criteria are more flexible and realistic.
Sometimes it is still possible to apply now, with the right lender and the right expectations. In other cases, the best approach may be to put a short, focused plan in place – for example, settling specific accounts, reducing reliance on overdrafts or simply allowing more time to pass.
We will talk honestly through your options so you can decide whether to move ahead now or take a little longer to rebuild. Either way, you will have a clearer picture of what is realistic and what you can do to move closer to owning your home.
Worried about your credit history?
You do not have to work it all out on your own. Share your situation with us and we can talk through what your credit report is telling lenders and what your next steps might look like.
Understand affordability checks and how commitments (like loans and credit cards) impact your options.
Understand how lenders will assess what you can borrow
Every lender has its own formula for working out how much you can borrow. While most people have heard the phrase “4.5 times your income”, real affordability is much more nuanced. Lenders look at your income, your spending, your credit behaviour and even the type of property you want to buy.
This table breaks down how lenders assess affordability and what these rules mean in real life.
| Lender Rule | What That Actually Means | What You Can Do |
|---|---|---|
|
Income Multiples Most lenders use 4–4.5× your income. Some stretch to 5–5.5, some even to 6×. |
Not everyone qualifies for the higher multiples. Your credit, debts, dependants and income type influence whether a lender lets you borrow at the top end of their range. | Keep your credit clean, reduce unnecessary credit, and ensure income is provable. A broker can match you with lenders offering higher multiples if you’re eligible. |
|
Committed Outgoings Loans, credit cards, PCP, childcare etc. |
Lenders deduct your committed payments before calculating how much you can borrow. High monthly credit commitments can reduce affordability significantly. | Pay down or clear short-term debts where possible. Even reducing one monthly payment can increase borrowing power. |
|
Credit Behaviour Your score, history, utilisation and linked accounts. |
Lenders don’t just analyse your score – they look at patterns: late payments, consistent overdraft use, high utilisation and financial associations. | Lower utilisation, avoid repeated overdraft use and ensure you’re on the electoral roll. If needed, allow time to rebuild your profile. |
|
Deposit Size A larger deposit reduces lender risk. |
Higher deposits can unlock better interest rates and increase your affordability score because lenders view your application as lower-risk. | If possible, increase savings or consider using a LISA or gifted deposit. Even moving from 5% to 10% can change the lending decision. |
|
Dependants Children or adults financially dependent on you. |
Lenders factor in the assumed cost of raising children because it reduces your disposable income. | Not much to “fix” here — but selecting the right lender makes a big difference. Some are far more generous toward applicants with dependants. |
|
Expenditure Day-to-day spending and lifestyle patterns. |
Some lenders use an assumed living cost model; others analyse your actual bank statements for spending trends. | Keep spending consistent, avoid spikes in discretionary purchases and make sure your bank statements reflect stable, sensible budgeting. |
|
Interest Rate “Stress Tests” Lenders test whether you could afford higher rates. |
They model whether you could afford the mortgage if interest rates increased, which reduces borrowing for some applicants. | Reducing commitments helps here. We can also target lenders whose calculators are more generous under current stress test rules. |
Want a personalised affordability check?
We’ll run your numbers through multiple lender calculators so you can see your true borrowing range — not just a generic estimate. Get the ball rolling with a free, no-obligation Intro Call
See how existing commitments affect your mortgage options
Your Debt-to-Income (DTI) ratio compares your household’s regular monthly debt repayments to your gross monthly income. It’s one of the tools lenders use to assess how comfortably you can manage existing commitments alongside a new mortgage.
Different lenders use different affordability models. This tool is a guide only and does not replace personalised advice. If you’re unsure how your DTI might be viewed in practice, please get in touch and we can talk it through.
Add your regular gross (before tax) monthly income. For a joint application, use your combined figures.
Include regular monthly repayments on credit cards, loans, car finance and other borrowing. Exclude everyday bills such as utilities, council tax and general living costs.
Pop in your figures above and click “Calculate DTI” to see your result.
Gather the right documents early so your application runs smoothly and avoids delays.
Know exactly what documents lenders will ask for
When applying for a mortgage in the UK, lenders need to verify your income to assess your ability to repay the loan. The exact documents required will vary from lender to lender, but they typically fall into two broad categories: employed applicants and self-employed applicants.
Providing clear, accurate documentation helps your Mortgage Adviser match you with the right lender and avoids delays later in the process.
Good to know (Ltd Company Directors)
If you’re a Ltd Company Director, some lenders can assess affordability using your share of company net profits (rather than just salary and dividends).
Depending on what you’re trying to achieve, we can package your application to best utilise your income.
Consistency is Key: Lenders prefer stable, predictable income. If your income fluctuates, be ready to explain why.
Up-to-Date Documents: Ensure everything you provide is recent, clear and complete. Outdated paperwork may not be accepted.
Work With a Mortgage Adviser: We'll guide you on exactly which documents you need, prepare your application and match you with a lender suited to your circumstances. You can also review our full Mortgage Application Document Guide for detailed support.
If you’d rather keep this to hand (or work through it with a pen and a coffee), download the workbook and tick things off at your own pace.
Plain-English definitions for the words lenders and solicitors throw around
Ask the right questions, negotiate with confidence, and understand what happens between offer and completion.
Ask the right questions before making an offer
When dealing with estate agents, asking the right questions is essential to gather information, make informed decisions, and ensure a smooth transaction. Here are some questions to consider asking:
Remember, these questions serve as a starting point. Tailor them based on your specific needs and the particulars of the property or the property market in your area.
Approach offers calmly, confidently, and strategically
Negotiating the price of a house can be a delicate process that requires preparation, communication skills, and a strategic approach. Here are some tips to help you negotiate the best possible price for the house you’re interested in:
Understand what happens between offer and completion
Your offer has been accepted and your mortgage approved — now it’s over to your legal team. Here’s what to expect at each stage of the conveyancing journey.
Swipe through the cards — or use the arrows to jump to the next step.
Keep your home secure if life throws a curveball — and use the checklist to make moving day painless.
Make sure illness or injury doesn't put your home at risk
Buying your first home isn’t just about reaching completion — it’s about staying secure once you’re there. You’ve worked hard to save your deposit, build your credit profile and prepare for homeownership.
But one thing often gets overlooked: your ability to keep paying for the home once you’re in it. Income Protection ensures that illness or injury doesn’t derail your plans.
If illness or injury stops you working, income protection provides a monthly benefit that keeps your finances stable.
Without protection, buyers are often forced to dip into their hard-earned deposit during a setback. This cover keeps your savings intact and your plans on track.
Your mortgage lender still expects payment, even if you're unwell. Income protection prevents arrears, credit damage and unnecessary stress.
Homeownership comes with responsibilities. Income protection gives you peace of mind and resilience for whatever life throws your way.
Protect your home, belongings, and lender requirements
Your shield of protection
Home insurance is a non-negotiable for homeowners. It protects you financially if the unexpected happens (think fire, theft, water damage, storms, or accidental damage), so you’re not left footing the bill alone.
Policies will often include liability cover too — helping protect you if someone is injured on your property, or if you accidentally damage someone else’s property.
Defaqto is an independent service known for its analysis of financial products. A 5-star Defaqto rating can indicate strong features and comprehensive cover within a home insurance policy.
Insurers with high ratings are often seen as more robust in terms of policy quality, which can add an extra layer of confidence when you’re choosing a provider.
A practical to-do list and timeline from exchange to moving day
A practical timeline to keep you on track — from the “we should probably start sorting…” stage right through to moving day and the first few jobs after you’ve moved in.
If you’ve worked through this guide, you’re already in a much stronger position than most first-time buyers. Whether you’re ready to move forward now or just needed clarity, that’s a big step.
And if you want help turning everything you’ve read into a clear, practical plan, we’re here to talk it through — no pressure, no jargon.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IMPORTANT: With investments, your capital is at risk. Pensions and investments can go down in value as well as up, so you could get back less than you invest.
Need Financial Planning Ltd is registered in England and Wales no. 10901658. Registered office, 123 High Street, Broadstairs, Kent, CT10 1NQ. Authorised and regulated by the Financial Conduct Authority. Need Financial Planning Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 977136. If you wish to register a complaint, please write to [email protected] or telephone 01843 228800. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
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