How to purchase your first home in Stoke City, UK in 9 easy steps

How to purchase your first home in Stoke City, UK in 9 easy steps


Buying a first home is a big move up the property ladder, but we’re here to guide you through the process.

1. Decide how much of a down payment you can afford to make

One of the most difficult things for first-time purchasers to do is save for a deposit, and the COVID-19 outbreak means that you may need to save even more than you had planned.

Since there are currently so few 95% mortgages available, a deposit of at least 10% of the property’s purchase price is now more probable than ever.


Therefore, a £20,000 deposit is required on a £200,000 property, up from the standard 10% down payment.

Use our down payment calculator to get an idea of how long it might take you to save up for your first house purchase.

2. Increase your earnings by 25%

While savings interest rates are extremely low, the government has implemented a program to assist first-time homebuyers in increasing their down payment and closing costs.

A lifelong Isa can be opened by anyone under the age of 40 who is saving to purchase a home up to the value of £450,000.

You can put away up to £4,000 per year in a lifelong Isa until you turn 50. The government will match your funds at a rate of £1 for every £4. This could result in an annual increase of £1,000 in your income.

Keep in mind that there is a penalty on the amount you withdraw if you do so before you turn 60 for any reason other than purchasing a house.

3. See how much of a loan you can get

We’ve discussed potential savings requirements, but another major factor is how much of a mortgage you’ll qualify for.


Borrowing limits are typically established as a percentage of your yearly salary. The standard loan-to-income ratio offered by lending companies is 4.5:1.

For example, if you and your spouse each bring in £40,000 per year, you could potentially qualify for a loan of around $180,000. This assumes that you will be making equal mortgage payments each month.

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4. Investigate different financing programs

For first-time buyers who are strapped for cash, the withdrawal of 95% mortgages is a major setback; however, some of the largest lenders have relaunched their 90% deals.

If you don’t think you’ll be able to save enough money for a 10% down payment, you can look into programs like Help to Buy or joint ownership (more on these in a bit), or you can ask a family member to be a guarantor on your mortgage.

Joint mortgages and joint borrower, single proprietor deals are two alternatives to guarantor mortgages in which a parent or grandparent pledges his or her own money or property as collateral. An experienced mortgage counselor can help you weigh the benefits and drawbacks of your loan options.

5. Learn more about first-time purchasing programs

First-time buyers who are having trouble saving for a down payment have a few choices, including Help to Buy and shared ownership, both of which have their advantages and disadvantages.

With the government’s Help to Buy program, you can buy a brand-new construction house with just a 5% down payment by taking out a 20% loan and financing the remaining 75% with a mortgage. Help to Buy has been criticized for driving up the price of new homes, but it will be relaunched in April 2021 with price limits in place for specific regions.

When purchasing a portion of a property (typically a leasehold apartment), the buyer can choose to purchase anywhere from a 25% to 75% stake in the property and instead pay rent on the remaining stake. It can be a good way to get your foot in the door in expensive cities like London, but the total cost can be high and there are safety issues with some buildings.

First-Time Buyers: Follow Our Step-by-Step Guide to Securing a Mortgage and Purchasing a Home

6. Initiate a preliminary mortgage deal

In addition to helping you better understand your financial options, having a mortgage in place before you begin house hunting can demonstrate to sellers that you are a serious shopper.

An “agreement in principle” is a statement from a lender stating how much they are willing to let you borrow to purchase a house. This typically involves a “soft” credit check. Even if your offer is accepted, you won’t be guaranteed a mortgage until you officially file for one.

Again, a mortgage counselor is worth consulting because they can survey the market and secure a preapproval for you.

7. Try to locate the appropriate real estate

One of the most thrilling parts of purchasing a house is making your first property selection. Now that you have a preliminary arrangement, you can start investigating potential neighborhoods in which you can afford to buy a home. Using our town contrast tool, you can research and evaluate multiple English municipalities before making a final decision on where to make your investment.

Get the best possible results from your house viewings by familiarizing yourself with the local real estate market and using our house showing checklist.

8. Submit an application for a mortgage and make a bid

When you’ve finally located the perfect home, it’s time to put in a bid. Learn the ins and outs of placing an offer on a home and how to stand out from the crowd with the help of our comprehensive guide.

Return to the mortgage lender once your offer has been approved so you can complete the loan application process.

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9. Have patience and be prepared to trade

Here comes the dull part. After your offer is approved, you will need to hire a conveyancer to handle the transaction’s legal details. You should also commission a home inspection to make sure there are no major flaws with the home.

Maintain realistic expectations regarding how long the conveyancing procedure will take, particularly in the current climate.

Your conveyancer will coordinate with the seller’s lawyer to arrange a date for the exchange of contracts and completion of the acquisition once the process is nearly complete.