A first-time buyer’s guide to buying a home in Northern Ireland

Buying your first home is exciting, but the process can feel like it’s written in a different language. This guide takes you through it step by step, with the costs, schemes and Northern Ireland specifics you need to know.

Figures in this guide are correct as of October 2026.

Step 1: Work out what you can afford

Most lenders work out how much you can borrow from your income, your regular outgoings and your credit history. As a rough guide, many lenders will lend around four to four and a half times income, though it varies by lender and circumstances. You can get a quick idea with our borrowing calculator.

Remember to look at what the monthly payments would mean for your budget, not just the maximum a lender might offer.

Step 2: Save your deposit

You’ll usually need a deposit of at least 5% of the price. A bigger deposit gives you access to more lenders and usually better rates, but plenty of first-time buyers in Northern Ireland buy with 5% or 10%.

Some families help with a gifted deposit. That’s usually fine, but the lender will want a letter confirming it’s a gift and not a loan, and your solicitor will need to check where the money came from.

Schemes that can help in Northern Ireland

Co-Ownership

Co-Ownership is Northern Ireland’s shared ownership scheme. You buy a share of the home with a mortgage and pay rent to Co-Ownership on the rest, and you can buy more shares over time. The property value limit is £215,000 for existing homes and £230,000 for new builds (from 15 September 2026). Find out more on our Co-Ownership mortgages page.

Lifetime ISA

If you’re 18 to 39 you can open a Lifetime ISA and save up to £4,000 a year, with a 25% government bonus. It can be used towards a first home costing up to £450,000. Taking money out for other reasons usually means a 25% charge, so check the rules before you use it.

The government is consulting on replacing the Lifetime ISA with a new First-Time Buyer ISA, possibly from April 2027. The changes aren’t law yet, and existing Lifetime ISAs carry on working as normal for now.

Stamp duty for first-time buyers

Northern Ireland follows the same Stamp Duty Land Tax rules as England. First-time buyers pay no stamp duty on the first £300,000 of the price, and 5% on the part between £300,000 and £500,000. If the price is over £500,000, first-time buyer relief doesn’t apply and the standard rates are used instead. Many first-time buyers in Northern Ireland pay no stamp duty at all.

The other costs to budget for

• Solicitor’s fees for the legal work, plus searches and registration fees
• A survey, which tells you about the condition of the property
• Mortgage fees, such as arrangement and valuation fees, though some deals have none
• Rates, the Northern Ireland equivalent of council tax, once you move in
• Moving costs and the basics for your new home

Step 3: Get a mortgage in principle

A mortgage in principle (sometimes called an agreement in principle) is a lender’s indication of how much they’d be willing to lend you. Estate agents often ask for one before they’ll take your offer seriously, so it’s worth getting before you start viewing.

Step 4: Find a home and make an offer

Once your offer is accepted, the property is “sale agreed”. At this point you’ll instruct a solicitor and make your full mortgage application.

Step 5: Valuation, survey and mortgage offer

The lender will value the property, and it’s sensible to get your own survey too. Once the lender is happy, they’ll issue a formal mortgage offer.

Step 6: Contracts and getting the keys

Your solicitor will handle the legal work, check the title and prepare the contracts. Once everything’s signed and the money is transferred on completion day, you get the keys.

Don’t forget protection

A mortgage is usually the biggest commitment you’ll make. It’s worth thinking about how the payments would be covered if you couldn’t work or if the worst happened, through life insurance and income protection.

Tips to give your application the best chance

• Check your credit file and correct any mistakes
• Make sure you’re on the electoral roll at your current address
• Avoid taking out new credit in the months before you apply
• Keep your recent payslips and bank statements to hand

How McDowell can help

We’ve helped people across Northern Ireland buy their first home for over 30 years. We’ll explain the process in plain English, compare lenders for you, and deal with the lender from application to completion. Find out more on our first-time buyer mortgages page, or book a free call below.

This article is general information only and isn't personal advice. Mortgage and protection products depend on your circumstances, so please speak to one of our advisers before making a decision.