Step 1: Work out your budget
Before you look at a single property, you need to know exactly what you can afford. This means understanding three figures: how much you can borrow (typically 4–5.5x your income), how much deposit you have, and how much the total monthly repayment will be.
Do not forget to budget for the additional costs of buying: solicitor fees (£1,500–£3,000), survey costs (£500–£1,500), mortgage arrangement fees (£0–£2,000 depending on the product), and moving costs. These can add up to £5,000–£8,000 on top of your deposit.
Step 2: Open a Lifetime ISA immediately
If you have not already done so, open a Lifetime ISA (LISA) as soon as possible. You can save up to £4,000 per year and receive a 25% government bonus — up to £1,000 free money per year — which can be used towards your deposit on your first home (up to £450,000 purchase price).
The LISA must be open for at least 12 months before you can use it to buy a property, which is why opening it early — even with just £1 — is important. You can pay in a lump sum before April 5th each year to maximise the annual bonus.
Step 3: Get a mortgage Agreement in Principle
Before you start viewing properties seriously, get a mortgage Agreement in Principle (AIP) — also called a Decision in Principle or Mortgage in Principle. This is a conditional offer from a lender confirming how much they would be willing to lend you, subject to full application and valuation.
Sellers and estate agents take buyers with an AIP much more seriously. In London's competitive market, being chain-free with a mortgage in principle can be the difference between having your offer accepted and losing the property to another buyer.
As whole-of-market broker, we can often issue an AIP the same day. We search 90+ lenders to find the best deal for your income, deposit, and circumstances.
Step 4: Understand the costs of buying in London
London has the highest property prices in the UK, which affects several of the costs involved in buying.
Stamp Duty Land Tax (SDLT)
First time buyers in England pay no stamp duty on the first £425,000 of a property's value (until March 2025, after which the threshold reverts to £300,000 — so if you are planning to buy, timing matters). Above this threshold, the rate is 5% up to £625,000.
On a £400,000 property as a first time buyer, you currently pay no stamp duty at all. On a £500,000 property, you pay 5% on £75,000 = £3,750. Use our stamp duty calculator to work out exactly what you will owe.
Solicitor fees
Your conveyancing solicitor handles the legal side of the purchase. In London, expect to pay £1,500–£3,000 for a standard residential purchase, with additional disbursements (Land Registry fees, searches) on top. Do not just choose the cheapest — responsiveness and experience matter enormously in keeping a purchase on track.
Step 5: Find the right area
In London, location is everything. The same budget can buy very different properties depending on the borough — a 1-bedroom flat in Kensington or a 3-bedroom house in Havering. Think carefully about what matters to you: commute time, schools, lifestyle, and long-term growth potential.
As a general rule, areas with new transport infrastructure (particularly Elizabeth line stations) and active regeneration tend to outperform over the medium term. Our guide to the best areas under £400,000 is a good starting point.
Step 6: Make an offer and instruct a solicitor
When you find the right property, make an offer through the estate agent. In London's competitive market, you may need to offer at or above the asking price. Once your offer is accepted, instruct your solicitor immediately and formally apply for your mortgage.
Your lender will commission a valuation of the property. We recommend also commissioning an independent survey (at minimum a HomeBuyer Report) to identify any structural issues before exchange of contracts.
Step 7: Exchange and completion
Exchange of contracts is the legally binding point — once you exchange, neither party can pull out without financial penalty. Completion is typically 1–4 weeks after exchange, when the money transfers and you receive your keys.
The average time from offer to completion in London is 3–4 months, though complex chains or leasehold properties can take longer. Instructing a proactive solicitor and keeping in regular contact with all parties will help keep things moving.
Government schemes for London first time buyers
Shared Ownership is the most widely used scheme in London. You buy a percentage (typically 25–75%) of a new-build home from a housing association and pay subsidised rent on the remainder. This dramatically reduces the purchase price you need to mortgage.
The First Homes scheme offers newly built properties at a minimum 30% discount to eligible first time buyers, with the discount staying attached to the property forever. Availability is growing across Greater London.