First-time buyers guide
We get some version of the same phone call most weeks, someone's found a flat they love, they've no idea what LBTT stands for, and they've got forty-eight hours before a closing date they didn't see coming. This guide is the thing we wish we could hand every one of them a month earlier.
It covers everything a first-time buyer actually needs to know in Scotland, in the order you'll need to know it. Read the deposit section properly, everything else follows from that one number.
How much deposit do you actually need?
Most lenders will take you seriously with a 5% deposit. That said, the mortgage deals get noticeably better once you're at 10% or 15%, lower rates, more choice, less stress. On a typical Edinburgh first-time buyer purchase around £220,000, that's the gap between finding roughly £11,000 and £33,000. Not a small gap.
A bigger deposit does two things for you: it unlocks cheaper rates, because lenders like buyers who look like less of a risk, and it gives you a bit of a cushion if prices dip after you buy. We'd also say this, there's no medal for stretching to the absolute maximum deposit you can scrape together. Sometimes going in at 10% and keeping some cash back for moving costs is the smarter play than emptying the account entirely to hit 15%.
Deposits usually come from savings, a Lifetime ISA (the government tops up what you save by 25%, up to £1,000 a year - genuinely worth using if you haven't started one), or a gifted deposit from family. If it's the latter, get the conversation with them out the way early as your solicitor will need a signed letter confirming it's a gift, not a loan.
Sort your Decision in Principle before you view anything
A Decision in Principle (sometimes called an Agreement in Principle) is a lender's provisional yes, based on a quick look at your income and credit file. It's not a guarantee, the full application still has to happen later but it tells you three things straight away: your actual budget, whether there's anything lurking on your credit file that needs sorting first, and it tells sellers you're not wasting anyone's time.
This matters more in Scotland than people expect, because of how the offers system works here. You can't put in a sensible offer without knowing your ceiling, and a lot of estate agents won't even release a Home Report until they've seen you've got one of these.
How buying a home actually works here
If you've picked up bits of the process from friends down south, forget most of it. Scotland does this differently, and once you're in it, things move fast.
The Home Report. Sellers have to commission this before marketing - survey, energy report, property questionnaire, the lot. You'll usually get sight of it before you even view.
Offers over, or fixed price. A lot of properties go out "offers over," which means the listed figure is a starting point, not the expected sale price. This is exactly where a Decision in Principle earns its keep.
Noting interest. If you like a place, your solicitor formally notes interest with the seller's solicitor. This is how you find out about a closing date.
Closing date. Everyone interested submits a sealed offer by a set deadline. No back-and-forth, no second chances - you get one shot, so it needs to be pitched right, not just high.
Missives. Once your offer's accepted, solicitors exchange a set of letters, the missives - that form the binding contract. This is the real point of commitment in Scotland; there's no English-style gap between "agreed" and "actually bound" where either side can quietly walk.
Completion. Keys in hand. The bit you've been picturing since step one.
The mortgage itself isn't just about the rate
Everyone fixates on the headline rate, understandably, but the shape of the mortgage matters just as much:
Fixed rate - your payment stays put for 2, 3, or 5 years no matter what the Bank of England does. The default for most first-time buyers who'd rather budget with certainty than chase a slightly better number.
Tracker rate - moves with the base rate. Can work out cheaper over time, but it's a harder thing to plan around on your first mortgage.
Term length - stretch it to 30 or 35 years and your monthly payment drops, but you'll pay more interest over the life of the loan. Worth an actual conversation, not just a default tick.
The questions we get asked most
How much deposit do I actually need to buy my first home in Scotland? 5% will get most lenders interested, but rates improve properly from 10% up.
Do first-time buyers pay LBTT in Scotland? Only above £175,000, and even then, only on the bit above that.
What's the difference between LBTT and Stamp Duty? LBTT is Scotland's own property tax, replacing Stamp Duty here since 2015. Different rates, different bands, different reliefs - an English calculator won't give you the right number.
How long does a Mortgage in Principle take? Usually the same day, sometimes within a couple of hours, depending on the lender.
Should I use a broker or just go to my own bank? Worth at least a conversation before you default to whoever you already bank with - a broker can look at the whole market, not just one shelf of products.
BOOK A CALL - If you’d like to talk through your own numbers rather than the general version. We’d be happy to help where we can.
