First-Time Buyer Mortgage Guide: Your Complete Step-by-Step Journey

Buying your first home is an exciting step, but it can also feel complex and overwhelming. This guide is designed to help first-time buyers understand the key stages of the home-buying process and what to consider along the way. 

Preparation: Are You Purchase-Ready? 

Before you start browsing properties, it’s important to understand your financial position. 

Review Your Finances 

Mortgage lenders will assess more than just your income. They will consider your overall financial situation, including your outgoings, existing commitments, and spending habits. 

Taking time to review your income, expenses, and savings can help you understand what deposit you may be able to afford and what level of borrowing may be realistic. 

Check Your Credit Rating 

Your credit history helps lenders assess how you have managed borrowing in the past. This can influence whether you are offered a mortgage and on what terms.
You can check your credit report through credit reference agencies, often free of charge. 

Understanding the Costs Involved 

When buying your first home, there are several costs to consider in addition to your deposit, including: 

• Stamp Duty (where applicable) 
• Survey costs 
• Solicitor or conveyancing fees 
• Mortgage product or arrangement fees 
• Moving costs 

Planning for these in advance can help reduce the risk of financial pressure later in the process. 

How Much Might You Be Able to Borrow? 

Based on your financial situation, you can begin to explore how much you may be able to borrow. 

Mortgage calculators can provide an indicative estimate based on the information you enter. However, these figures are only a guide and may differ from the amount a lender is willing to offer. 

Find out more using our mortgage calculator. 

Your home may be repossessed if you do not keep up repayments on your mortgage. 

Deposit Requirements 

The size of your deposit will affect the mortgage options available to you. 

Some lenders offer mortgages with deposits starting from 5% of the property value, although this depends on your individual circumstances and lending criteria. 

A larger deposit may provide access to a wider range of mortgage products and potentially more competitive rates. 

Mortgage Decision in Principle (DIP) 

A Decision in Principle is an indication from a lender of how much they may be willing to lend, based on initial information. 

This can be helpful when making an offer on a property, but it is not a guarantee. A full application and further checks will be required. 

A mortgage adviser can help you understand your options and has access to a wide range of lenders across the market. 

Speak to a qualified mortgage adviser to discuss your options. 

Important: Thinking About Affordability 

It’s important to consider not just what you may be able to borrow, but what you can comfortably afford both now and in the future. 

Changes in interest rates or your personal circumstances could affect your monthly repayments. Taking a long-term view can help reduce the risk of financial pressure later on. 

House Hunting 

Once you have an indication of your borrowing capacity, you can begin searching for a suitable property. 

A Decision in Principle may help demonstrate to estate agents that you are a serious buyer. 

Take your time to find a property that suits both your needs and your financial situation. 

Legal Work and Mortgage Application 

Once your offer is accepted, you will need to appoint a solicitor or conveyancer to handle the legal aspects of the purchase. 

Your mortgage adviser will then proceed with your full mortgage application. The lender will carry out detailed checks, which may include income verification, credit checks, and a property valuation. 

Property Valuations and Surveys 

Lenders will usually require a valuation to confirm the property’s suitability for lending purposes. You may also choose to arrange a survey, which is more detailed and can help identify potential structural issues or repairs. 

Protection Advice 

Your adviser may offer to discuss protection products, such as life insurance or income protection. 

These products are optional and are designed to help provide financial support in certain circumstances, such as illness or loss of income. Your adviser will explain whether these may be suitable for you. 

Your Mortgage Offer 

If your application is successful, the lender will issue a formal mortgage offer outlining the terms and conditions. It’s important to review this carefully and ask questions if anything is unclear before proceeding.

Exchange and Completion 

Your solicitor will manage the final legal stages, including exchanging contracts and completing the purchase. Once completed, ownership of the property transfers to you. 

Fees 

Our fee for mortgage advice is £699. This fee becomes payable on completion of your mortgage. We will confirm the full details, including timing and method of payment, before you proceed. 

Need Support? 

If you would like mortgage advice to help you understand your options or navigate the process, you can speak to a qualified mortgage adviser. 

Important Information 

Your home may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate some commercial and buy-to-let mortgages. A lifetime mortgage or equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.