A Guide to Buying Your First Home in 2026

The 2026 Financial Landscape for First-Time Buyers

In 2026, the property market is more stable than it has been in years. House prices are growing at a steady pace, and mortgage rates now usually range from 3.5% to 4.5%. While rates are not as low as they were in the 2010s, the main benefit now is predictability.

For first-time buyers, the focus is now on making the most of your borrowing power instead of trying to time the market. Most lenders will let you borrow about 4 to 4.5 times your yearly salary. Some lenders even offer special products for high earners or certain professionals, allowing them to borrow up to 5 or 5.5 times their income.

With this added flexibility and the Mortgage Guarantee Scheme for 5% deposits, your Agreement in Principle could be higher than you think. At Crown Luxury Homes, we suggest getting an AIP early so you know your budget before you start looking for a home.

Deposit Boosters: Government Schemes in 2026

Many people still think you need a 20% deposit to buy a home in 2026, but that is no longer true. The new normal is much more accessible. The Freedom to Buy scheme, which is a permanent version of the mortgage guarantee, gives lenders a government-backed safety net. This keeps 95% LTV mortgages widely available, so you can buy a home with just a 5% deposit on properties up to £600,000.

If you are still saving, the Lifetime ISA (LISA) is a great option for buyers aged 18 to 39. It gives you a 25% government bonus on up to £4,000 saved each year, which means you can get up to £1,000 extra annually. There is talk of replacing the LISA with a simpler product, but for now, the £450,000 property price cap still applies.

If you want even more affordable options, there are two main schemes to consider:

• The First Homes Scheme: This offers new-build homes to local first-time buyers at a 30% to 50% discount.
• Shared Ownership: This lets you buy a share of a home (from 10% to 75%) and pay rent on the rest, which lowers the deposit you need.

The Step-by-Step Buying Process

Moving from renting to owning a home takes careful planning. In 2026, much of the process is now online, but the main steps are still the same as before.

Start by saving and preparing, making the most of your LISA bonus and getting an AIP (Agreement in Principle) to show how much you can borrow. This certificate shows sellers and estate agents that you are a serious buyer. After your offer is accepted, you move to the legal stage, where your solicitor checks that the property is safe and legally sound.

The last big step is exchanging contracts, which makes the deal legally binding. After that comes completion, when the money is transferred and you get your keys.

As rules change, having a mortgage advisor or independent broker is more important than ever. They can help you through the process by:

• Identifying lenders whose 2026 criteria match your specific career path.
• Demystifying the “fine print” of modern government schemes.
• Managing the timeline to ensure you don’t lose your dream home to a faster buyer.

Strategy: The Buyer’s Advantage

Buying your first home in 2026 is possible, but it helps to treat it as a well-planned project, not just a simple purchase. The market has changed, and there are more ways than ever to get started if you plan ahead and use expert advice.

An independent mortgage broker is your best resource. In 2026, many of the best rates and high-LTV products are only available through brokers, who can match your job and credit history to the right lender.

Do not overlook the importance of a professional survey. Spending £500 to £1,000 on a Level 2 or 3 survey may seem like a lot, but it can protect you from costly problems. Finding issues like structural damage or damp before you exchange contracts lets you renegotiate the price or ask the seller to fix them, which could save you thousands after you move in.

Common Questions for First-Time Buyers in 2026

To help you on your journey, we have gathered the most common questions our team at Crown Luxury Homes has received from first-time buyers.

How long does it take to buy a home in 2026? Usually, it takes about 12 to 16 weeks from when your offer is accepted to when you get your keys. If there is no chain, it can sometimes be as quick as 8 weeks, but legal checks and mortgage approval are the main factors that affect the timeline.

What is the difference between a “Valuation” and a “Survey”? Many people think the lender’s valuation is for their benefit, but it only tells the bank the property is worth the loan. A Home Survey (Level 2 or 3) is something you arrange to check for problems like structural issues or damp. In 2026, we see a survey as essential protection against future costs.

Can I still buy with a 5% deposit? Yes. The permanent Freedom to Buy scheme means 95% LTV mortgages are common. In 2026, though, lenders care more about your ability to afford the loan, so having a good credit history and steady job is very important.

Do I need a solicitor before I find a house? You do not need to hire one until your offer is accepted, but it is a good idea to get a quote in advance. Being ready with a solicitor makes you a more appealing buyer to sellers who want a quick, smooth sale.