Buying a house in 2026/27 starts with working out what you can genuinely afford, not just the biggest mortgage a lender might offer. Then you need an Agreement in Principle, a deposit, a realistic budget for fees and tax, a solicitor or conveyancer, the right survey, mortgage approval, searches, exchange and completion. First-time buyers in England and Northern Ireland currently get SDLT relief on qualifying purchases up to £500,000, with 0% on the first £300,000 and 5% on the portion from £300,000 to £500,000.
Buying a house is one of those things that sounds simple until you actually try to do it. Find a property, get a mortgage, collect the keys. In reality, there are several stages where the numbers can change, the lender can ask for more information, the survey can uncover problems or the legal work can slow everything down.
The process is still manageable if you do things in the right order. GOV.UK says buying a home takes around 5 months on average, although chains and legal complications can make it longer. The easiest way to avoid unnecessary stress is to get your finances, mortgage position and legal team sorted before you fall in love with a property.
Step 1: Work out how much house you can actually afford
This is the most important step because almost everything else depends on it.
A lot of buyers start with a rough income multiple. You will often hear that lenders offer around 4 to 4.5 times household income. That can be a useful starting point, but it is not a universal rule and it is definitely not a guaranteed maximum.
The Bank of England’s loan-to-income framework historically limited the share of new mortgages at or above 4.5 times income rather than banning them completely. In 2026 the regulatory position is evolving further, with the PRA and FCA reviewing how high loan-to-income lending should work. Lenders can therefore offer above 4.5 times income in some circumstances, but they still have to satisfy their own affordability and responsible-lending rules.
Your actual mortgage offer can depend on income, existing credit commitments, childcare, student loans, age, mortgage term, credit history, the size of your deposit and how stable the lender considers your income.
I explain this affordability calculation in more detail in the video below, including why the house price you can afford is not simply your salary multiplied by one number.
The second part of affordability is your cash. A £300,000 mortgage does not mean you can buy a £300,000 property if you have no money for the deposit, tax, solicitor, survey, moving costs and emergency buffer.
| Cash item | What to allow for |
|---|---|
| Deposit | Often 5% to 10%+ of purchase price, depending on mortgage |
| SDLT / property tax | Depends on location, price and whether you are a first-time buyer or already own property |
| Solicitor or conveyancer | Legal fees plus searches and Land Registry costs |
| Survey | Depends on property type and survey level |
| Mortgage costs | Product, valuation or broker fees may apply |
| Moving / immediate repairs | Do not spend every last pound on completion day |
Step 2: Build the deposit and understand your first-time buyer options
A larger deposit can reduce your loan-to-value ratio, which can improve your choice of mortgage products. But there is no point putting every pound you own into the deposit and then discovering you cannot pay the solicitor or replace a broken boiler a week after moving in.
For eligible first-time buyers, the Lifetime ISA remains available in 2026. You can make a charge-free withdrawal towards a first home if the property costs £450,000 or less, the account has been open for at least 12 months, you are buying with a mortgage and the money is paid through your solicitor or conveyancer.
There is an important 2026 update. The government is consulting on a new First Time Buyer ISA that would eventually be offered instead of the Lifetime ISA. That consultation is not the same thing as the new product already existing. If you are buying now, the current Lifetime ISA rules are still the rules that matter.
Step 3: Get an Agreement in Principle before serious viewings
An Agreement in Principle, sometimes called a Decision in Principle, is an indication of how much a lender may be willing to lend based on initial information.
It is not a mortgage offer and it is not a promise that you will definitely be approved. The lender still has to assess the full application and the property.
But having one before you start making offers is useful because it gives you a realistic price range and shows an estate agent that you have already started the financing process.
Step 4: Search for the right property, not just the prettiest one
Before viewing, decide what is genuinely non-negotiable. Location, commute, schools, parking, bedrooms, garden, leasehold or freehold, condition and how long you plan to stay all matter.
Do not judge a property only by the asking price. Look at recently sold prices nearby, how long comparable homes have been on the market and whether the property needs expensive work.
If it is leasehold, check the remaining lease term, ground rent terms, service charges and any planned major works before you become emotionally committed. A cheap flat with an ugly lease can be more expensive than a higher-priced freehold house.
Step 5: Make an offer strategically
In England and Wales, an accepted offer is generally not legally binding until contracts are exchanged. That gives both sides room to negotiate, but it also means the transaction can still fall apart before exchange.
Before offering, check recent sold prices, the property’s condition and the seller’s position. A seller who has already found another property may value speed and certainty. A chain-free first-time buyer can sometimes be attractive even if their offer is not the absolute highest.
If a survey later uncovers a material defect, the price can still be renegotiated before exchange. That is one reason I would normally make the offer subject to contract and subject to satisfactory survey and mortgage.
Step 6: Instruct a solicitor or conveyancer immediately
Once your offer is accepted, get the legal work moving quickly. Your conveyancer checks the title, contract, searches, restrictions, planning issues and enquiries raised with the seller.
If you are using a mortgage, your lender will usually require a conveyancer who is acceptable to its panel. Choosing somebody before making an offer can save several days at the start of the transaction.
Your legal representative will also normally handle the SDLT return and registration after completion.
Step 7: Submit the full mortgage application
The full mortgage application is where the lender verifies the information behind your Agreement in Principle.
Expect questions about payslips, bank statements, accounts or tax calculations if self-employed, deposit source, credit commitments and the property itself.
Do not take out a large car loan, new credit card balance or finance agreement between your AIP and mortgage completion without understanding the impact. Lenders can reassess affordability before funds are released.
Step 8: Get the right survey
A lender’s mortgage valuation is primarily for the lender. It is not the same thing as a detailed survey carried out for you.
The older, unusual or more heavily altered the property is, the more cautious I would be about relying on a basic inspection. Roof problems, damp, movement, electrics, drainage, extensions and structural alterations can cost far more than the survey itself.
If something significant appears, get quotes before exchange. A £10,000 roof problem is useful negotiating information before you become legally committed. Afterwards, it is your roof.
Step 9: Let the searches and enquiries finish properly
Your conveyancer will normally arrange searches covering matters such as the local authority, drainage and environmental issues, depending on the property and lender requirements.
They also review the legal title and raise enquiries with the seller’s solicitor. This can be the slowest and least visible part of buying a house, but it is not pointless admin. This is where issues such as rights of way, missing building regulations, restrictive covenants, lease problems or unclear boundaries can appear.
Step 10: Understand the Stamp Duty bill before exchange
For purchases in England and Northern Ireland, the standard SDLT rates from April 2025 are 0% on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above £1.5 million.
Qualifying first-time buyers get better treatment if the property costs £500,000 or less: 0% on the first £300,000 and 5% on the portion from £300,000 to £500,000. If the price is above £500,000, First-Time Buyers’ Relief is not available.
| First-time buyer purchase | SDLT |
|---|---|
| £250,000 | £0 |
| £300,000 | £0 |
| £350,000 | £2,500 |
| £400,000 | £5,000 |
| £500,000 | £10,000 |
If you already own another residential property and the higher rates apply, the surcharge is now 5 percentage points above the standard residential rates. That can completely change the cash requirement, so do not assume the first-time buyer figures apply to you just because this is the first home you intend to live in.
This article focuses mainly on England. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax, so the tax figures above should not be applied to those purchases.
Step 11: Exchange contracts only when you are ready
Exchange is the point where the purchase becomes legally binding in England and Wales.
Before exchange, you should normally have the mortgage offer, satisfactory legal enquiries, searches, survey information, buildings insurance arranged where required and enough cash available for the deposit and completion costs.
Once contracts are exchanged, pulling out can have serious financial consequences. This is not the stage to discover you never read the survey.
Step 12: Complete and collect the keys
On completion day, your solicitor sends the purchase money to the seller’s solicitor. Once the money arrives and completion takes place, you become the owner and normally collect the keys from the estate agent.
Your solicitor then deals with the SDLT filing where applicable and the Land Registry application to register you as the new owner.
The goal is not to buy the most expensive house a lender will let you buy. It is to buy a house you can still comfortably afford after the keys are in your hand.
2026/27 house-buying checklist
| ✓ | Step | What to do |
|---|---|---|
| ☐ | 1 | Calculate your realistic monthly housing budget |
| ☐ | 2 | Confirm deposit, fees, tax and emergency cash |
| ☐ | 3 | Check Lifetime ISA eligibility if relevant |
| ☐ | 4 | Get an Agreement in Principle |
| ☐ | 5 | Shortlist locations and research sold prices |
| ☐ | 6 | View properties and check tenure, condition and running costs |
| ☐ | 7 | Make an offer subject to contract |
| ☐ | 8 | Instruct a solicitor or conveyancer immediately |
| ☐ | 9 | Submit the full mortgage application |
| ☐ | 10 | Arrange the right level of survey |
| ☐ | 11 | Review searches, enquiries and mortgage offer |
| ☐ | 12 | Calculate exact SDLT or relevant property tax |
| ☐ | 13 | Arrange buildings insurance where required |
| ☐ | 14 | Exchange contracts and agree completion date |
| ☐ | 15 | Transfer remaining funds and complete |
| ☐ | 16 | Take meter readings, update council tax, utilities and insurance |
The biggest mistakes I would avoid
The first is using the lender’s maximum as your personal budget. A bank’s affordability model does not know whether you want to travel, have children, change careers or sleep comfortably at night if rates are higher when your fix ends.
The second is forgetting the non-deposit cash requirement. Stamp duty, legal fees, moving costs and repairs can turn a seemingly affordable purchase into a cash-flow problem very quickly.
The third is skipping a proper survey on a property where condition matters. Saving a few hundred pounds to avoid discovering a five-figure problem is not a saving.
And the fourth is making major financial changes halfway through the mortgage process. Keep your finances boring until completion. A new car on finance can wait.
How much can I borrow for a mortgage in 2026?
There is no universal income multiple. Around 4 to 4.5 times income is often used as a starting point, but lenders can offer more or less depending on their criteria, your deposit, commitments, term and affordability assessment.
How much Stamp Duty does a first-time buyer pay?
For qualifying first-time buyers in England and Northern Ireland buying for £500,000 or less, the current rates are 0% on the first £300,000 and 5% on the amount from £300,000 to £500,000.
Can I still use a Lifetime ISA in 2026?
Yes, subject to the existing rules, including the £450,000 property price cap, 12-month minimum account period and buying with a mortgage. The government is consulting on a future First Time Buyer ISA, but that does not replace the current LISA rules yet.
How long does buying a house take?
GOV.UK says buying a home takes about 5 months on average, although chains, mortgage delays, surveys and legal issues can make the process shorter or longer.
This guide is general information rather than personalised mortgage, legal or tax advice. The buying process and property taxes differ in Scotland, Wales and Northern Ireland, so check the rules for the part of the UK where you are purchasing.
I cover mortgages, property, investing and the real numbers behind buying a home on The Anxious Investor YouTube channel. If you are trying to work out what you can afford before speaking to a lender, start with the affordability video above.
