First-Time Buyer Guide: Step-by-Step to Buying Your First Home in Scotland

★ Key Takeaways

• The Scottish home buying process is generally faster than England – typically 6-8 weeks from offer acceptance to completion
• You need a solicitor from the very start – they handle offers and negotiations, not estate agents
• Once missives are concluded, the sale is legally binding – no gazumping or gazundering
• Home Reports are provided by sellers upfront, saving buyers time and survey costs
• First-time buyers pay 0% LBTT on properties up to £175,000 – a significant saving compared to England

Buying your first home in Scotland is an exciting milestone, but the process works differently here compared to England and Wales. From Home Reports to blind bidding and the unique role of solicitors, understanding these differences will help you navigate your purchase with confidence.

In this comprehensive guide, we'll walk you through every step of the Scottish home buying journey – from getting your finances in order to collecting your keys on settlement day. Whether you're looking in Edinburgh, Glasgow, or anywhere across Scotland, this guide has you covered.

Before you start browsing Rightmove or booking viewings, it's essential to understand your budget. This means knowing how much you can borrow and having a realistic deposit saved.

Saving Your Deposit

Most lenders require a minimum 5% deposit, though 10% or more will unlock better interest rates. For a £200,000 property, that means saving between £10,000 and £20,000. Our guide to saving for a deposit covers practical strategies to build your pot faster.

Getting an Agreement in Principle (AIP)

An Agreement in Principle (also called a Decision in Principle or mortgage promise) is a statement from a lender confirming how much they're willing to lend you, subject to full checks. In Scotland's competitive market, having an AIP ready shows sellers you're a serious buyer who can move quickly.

Working with a mortgage broker like McGhie Mortgages means we can secure your AIP quickly and ensure you're looking at properties within your true budget.

Here's where Scotland differs significantly from England. In Scotland, solicitors handle property offers – not estate agents. This means you need a solicitor lined up before you find a property you want to bid on.

Your solicitor will:

• Note your interest in properties with selling agents
• Submit formal offers on your behalf
• Negotiate the missives (contracts)
• Handle all legal conveyancing work
• Register your ownership with Registers of Scotland

Expect to pay between £1,000 and £2,000 in solicitor fees for a straightforward purchase.

Now the fun part begins – finding your home! Use property portals like Rightmove, Zoopla, and ESPC (for Edinburgh and the Lothians) to search for properties that match your criteria.

Understanding Home Reports

In Scotland, sellers must provide a Home Report before marketing their property. This includes:

• Single Survey – A condition report with ratings from 1 (good) to 3 (needs attention)
• Valuation – The surveyor's opinion of market value
• Energy Report – The property's EPC rating
• Property Questionnaire – Information about council tax, parking, and any alterations

This system saves you money – you don't need to pay for your own survey before making an offer. However, your mortgage lender may require their own valuation.

Need Help Navigating the Scottish Home Buying Process?

Book a free, no-obligation chat with Marc to discuss your first home purchase.

Found a property you love? Here's how the Scottish offer process works:

Noting Interest

Your solicitor will formally "note interest" with the selling agent. This ensures you're notified if a closing date is set. It doesn't commit you to anything, but without noting interest, you could miss out on popular properties.

Blind Bidding and Closing Dates

In competitive areas like Edinburgh, sellers often set a closing date – a deadline for all offers. This is a "blind bid" system where you submit your best offer without knowing what others have bid. The seller then chooses the winning offer (not always the highest – they consider conditions too).

Properties may sell for anywhere from the Home Report valuation to 10-20% over in hot markets. Your solicitor and mortgage broker can advise on realistic offer levels.

Once your offer is accepted, your solicitor and the seller's solicitor exchange formal letters called missives. These cover the price, entry date, what's included, and any conditions.

The crucial point: once missives are "concluded" (fully agreed and signed), the contract is legally binding. Neither party can back out without facing financial penalties. This is very different from England, where either party can withdraw right up until exchange of contracts.

This system protects you from gazumping (being outbid after your offer is accepted) and provides certainty throughout the process.

Settlement (or "entry") is the day you become a homeowner! Your solicitor transfers the purchase funds to the seller's solicitor, receives the signed disposition (transfer document), and you collect your keys.

In Scotland, settlement typically happens 6-8 weeks after offer acceptance – significantly faster than the 12+ weeks common in England.

Here's a typical timeline for first-time buyers in Scotland:

Total: 6-8 weeks from offer acceptance to settlement (excluding property search time)

Budget for these essential costs beyond the property price:

Don't forget to explore government schemes that could help with your deposit or reduce your costs.

How much deposit do I need to buy a house in Scotland?

The minimum is typically 5%, though 10% or more will give you access to better interest rates and a wider choice of lenders. For a £180,000 property, that's £9,000 to £18,000.

Do I need a survey if there's already a Home Report?

The Home Report's Single Survey covers the property's condition, so you don't usually need to commission your own survey. However, your mortgage lender will arrange their own valuation (sometimes free, sometimes around £150-£300). For older properties or those with issues flagged in the Home Report, you might want a more detailed survey.

What is LBTT and how much will I pay?

Land and Buildings Transaction Tax (LBTT) is Scotland's property tax, replacing Stamp Duty. First-time buyers pay 0% on properties up to £175,000. Above that, you pay 2% on the portion between £175,001-£250,000, then higher rates on amounts above. For a £200,000 first home, you'd pay just £500 in LBTT.

Can the seller back out after accepting my offer in Scotland?

Until missives are concluded, either party can technically withdraw. However, once missives are concluded (fully exchanged and signed), the sale is legally binding. This happens much earlier in Scotland than the equivalent "exchange of contracts" in England, giving you greater certainty.

Buying your first home in Scotland doesn't have to be overwhelming. With the right preparation and expert guidance, you can navigate the process confidently and move into your new home within weeks.

At McGhie Mortgages, we specialise in helping first-time buyers across Edinburgh, the Lothians, and throughout Scotland. From securing your Agreement in Principle to celebrating with you on settlement day, we're with you every step of the way.

Ready to take the first step? Book a free, no-obligation consultation with Marc McGhie today and let's make your homeownership dream a reality.