Buying Your First Home - A Complete Guide

How To Actually Buy Your First Home: A Complete Guide

You’ve probably heard all of these before: 

‘Just stop buying coffee’ 

‘Skip the holidays for a couple of years’ 

 ‘Save a little bit each month’

On the surface, this advice might seem logical. Until you try to apply it to real life. For most first-time buyers today, the problem isn’t discipline; it’s tackling an incredibly difficult housing market. Rent is sky high, everything else is getting more expensive, and somehow, you’re meant to save thousands on top of that without putting your life on hold.

This guide has been put together to help you make sense of your options, from saving for a deposit and the different routes to homeownership, to understanding how the whole process works once you’re ready. 

How to save for your deposit

If saving for that initial deposit feels impossible, you’re not alone. In fact, 34% of first-time buyers cite raising a large enough deposit as the biggest barrier to homeownership. 

Most tend to think of it as one big, intimidating number, but no one saves a deposit all in one go. What works is a lot less dramatic and much more achievable. It’s all about building momentum. 

Automate your savings

To avoid getting overwhelmed, set a short-term savings goal and stick to it. Choose a set amount of your income every month to go straight into a savings account, set up an automated transfer and budget the rest of your money for the month. You don’t have to put a large amount aside, but it helps to build up good saving habits.

Figure out what's important to you

Cutting out the things that make you happy, like buying a coffee before work, going to watch your favourite band, or getting the odd takeaway, might help you save a little more money, but where’s the fun in that? Instead of ditching all the little joys, decide on the things you want to splurge on and where you can save. For example, if you love getting an oat latte in the morning, skip the Friday night takeaway and make a cheaper, homemade version of it instead. Small sacrifices can go a long way, and it means you can still enjoy what you love. 

Saving accounts that can help

Some savings accounts can help you take bigger steps towards saving that lump sum. A Lifetime ISA, for example, lets you save up to £4,000 a year towards a house deposit, with the government adding a 25% bonus on top (up to £1,000 annually) Over time, it can make a real difference to how quickly your deposit comes together, especially if you’re saving consistently.

Explore buying schemes

One of the biggest misconceptions about buying a home is that you need to save a minimum 10% deposit. For a lot of people, especially in London, that’s the assumption that keeps them stuck.

In reality, there are other routes, and they exist for a reason. 

Shared Ownership

Shared Ownership is a government-backed scheme designed to make homeownership more accessible. You buy a portion of a home (usually between 25% and 75% of the full market value) and pay a mortgage on that share. The rest is owned by a housing provider, like Square Roots, and you pay a reduced rent on it.

Instead of needing a deposit based on the full value of a property, you only need to put down a sum based on the share you’re buying, giving you a much smaller number to work with. For example, if a new build apartment in Lewisham has a full market value of £570,000, buying a 25% share would mean purchasing a £142,500 share. With a 5% deposit, you’d need £7,125 to get started. Suddenly, something that felt years away can move into the realm of ‘maybe in the next couple.’

Ultimately, Shared Ownership allows you to approach the same goal from a different angle. It means building equity earlier and then increasing your share over time (a process known as staircasing) when it makes sense to you. 

Affordable Rent

If you’re renting in the capital, then handing over a large portion of your income every month can make the idea of saving money for a deposit impossible. Affordable Rent allows you to rent a home at up to 80% of the market rate, including service charge. 

If you’re struggling to put any money aside in your current renting situation, this can allow you to make a start saving towards your future. 

The buying process

Whether you’re buying your home on the open market or through Shared Ownership, the process typically follows this structure, with a few differences: 

Mortgage in Principle

You’ll usually start by speaking to a lender or broker to get a Mortgage in Principle, which gives you a clearer idea of your budget and shows sellers you’re serious about purchasing a home. While it’s not an official offer, it also shows you’re likely to be approved for a mortgage.

If you’re buying through Shared Ownership, this step also includes an affordability assessment to work out what share you can comfortably afford.

Start your search

From there, you can begin your search. When you find somewhere you like, you’ll either make an offer (for resale homes) or reserve it (for new builds), which takes it off the market.

Paperwork finalise

Once that’s agreed, things move into the legal and financial stage. You’ll appoint a solicitor to handle the paperwork, and either you or your mortgage broker will submit your full mortgage application.  At the same time, your solicitor carries out checks on the property, reviews the contracts and finalises your mortgage offer.

With Shared Ownership, this stage also includes reviewing the lease and understanding both the rent portion and the service charge on the remaining share.

Exchange contracts 

When everything is in place, you’ll exchange contracts, which is when the purchase becomes legally binding.

Completion 

The final step is completion, when all funds, including legal fees, are transferred and you get the keys.

If you’ve bought through Shared Ownership, you’ll now own your share of the property and begin paying rent on the rest, with the option to increase your share over time if it suits you.

Put down long term (Square) Roots with Shared Ownership

If the usual advice about skipping coffees and cutting back has taught us anything, it’s that buying your first home isn’t that simple. It’s about knowing your options and finding a path that actually works for you.

There isn’t just one route to homeownership: Square Roots offers a range of stylish Shared Ownership homes designed for modern living, with developments in Lewisham, Hendon and Kingston upon Thames. Explore what’s available, find a location that fits your lifestyle and start your journey towards a home of your own today.