Buying your first home can feel overwhelming when you’re trying to understand deposits, affordability, mortgage terminology and the overall process. This page is designed to break things down into simple, easy-to-understand guidance so you know what to expect before moving forward with your mortgage plans.
A simple overview of what to expect from your first mortgage conversation and why you do not need to have everything perfectly prepared before speaking to a mortgage broker.
Understand what an AIP is, how it works and when it may help you start viewing properties confidently.
Understand how lenders assess income, spending and commitments when calculating affordability.
A breakdown of the main costs involved, including deposits, solicitor fees, surveys and stamp duty.
Buying your first home can feel overwhelming at first, especially when you are trying to understand deposits, affordability, mortgage options and the steps involved.
The good news is that you do not need to have everything perfectly prepared before speaking to a mortgage broker. The process is usually much more manageable once it has been broken down into simple stages.
Below is a straightforward overview of how the first-time buyer mortgage process typically works.
The first step is usually a relaxed conversation about your circumstances, income, deposit and future plans.
This allows us to understand what may be achievable, answer any initial questions and explain how the mortgage process works before you begin seriously viewing properties.
An Agreement in Principle is an initial assessment from a lender showing how much they may be willing to lend based on your circumstances and credit profile.
Having an AIP in place can help you understand your budget more clearly and can sometimes strengthen your position when making offers on properties.
Once you have identified a suitable property, you can make an offer through the estate agent.
At this stage, we can also help sense-check the property from a mortgage perspective and discuss any potential concerns before you commit further. If you are considering arranging a more detailed homebuyer survey, we would usually recommend waiting for the lender’s valuation to take place first so you can establish that the lender is comfortable with the property before incurring additional survey costs.
Once your offer has been accepted, the full mortgage application is submitted to the lender along with supporting documentation such as proof of income, bank statements and identification.
The lender will then begin assessing the application in more detail. During this stage, we may also discuss mortgage protection options designed to help protect your mortgage, income or family should your circumstances change in the future.
The lender will arrange a valuation of the property and review the application through their underwriting process.
During this stage, the lender may request additional information or clarification before making a final decision. Once the lender is satisfied with the application and valuation, they will issue a formal mortgage offer.
Once the formal mortgage offer has been issued, we can also help guide you through arranging suitable buildings insurance ready for completion.
Your solicitor will then continue progressing the legal work towards exchange and completion, at which point you will receive the keys to your new home.
An Agreement in Principle can help give you an early idea of what a lender may be prepared to consider before you start viewing properties or making offers.
It is not a guaranteed mortgage offer, but it can be a useful first step because it helps you understand your likely borrowing position and can show estate agents that your mortgage position has been reviewed.
The lender will still need to complete a full application, review your documents, assess the property and carry out underwriting before issuing a mortgage offer.
Mortgage affordability is about more than simply multiplying your income. Lenders will usually look at your income, regular commitments, credit commitments, dependants, deposit, mortgage term and wider household costs.
Different lenders can calculate affordability differently, so the amount you may be able to borrow can vary from one lender to another.
This is why it can be helpful to check affordability before you start making offers, especially if your income is variable, you have credit commitments, or your circumstances are not completely straightforward.
Lenders will usually look at your income, how it is earned and how stable it appears.
This may include basic salary, overtime, bonus, commission, self-employed income, benefits or other income sources, depending on the lender.
Existing credit commitments can affect how much you may be able to borrow.
Lenders may consider loans, credit cards, car finance, childcare costs, dependants and regular financial commitments when assessing affordability.
Your deposit affects the mortgage amount needed and the loan-to-value of the application.
A larger deposit can sometimes improve the range of lender options available, but the right route depends on your wider circumstances.
Affordability can vary between lenders, so it is worth checking your position before making an offer rather than assuming every lender will calculate borrowing in the same way.
When buying your first home, the deposit is usually the biggest cost, but it is not the only cost to plan for.
You may also need to budget for solicitor fees, searches, surveys, lender fees, valuation fees, moving costs and Stamp Duty Land Tax or Land Transaction Tax where applicable.
Understanding the likely costs early can help you plan your deposit properly and avoid surprises later in the process.
Your deposit is the amount you put towards the purchase from savings, gifted deposit or another acceptable source.
The amount needed will depend on the property, lender, mortgage product and your wider circumstances.
Buying a property usually involves legal work, searches and sometimes lender, valuation or product fees.
Your solicitor deals with the legal process, while the lender assesses the mortgage application and valuation.
You may decide to arrange a survey to understand the property condition before fully committing.
It is also worth budgeting for removals, insurance and any immediate costs after moving in.
The costs involved can vary depending on the property, location, lender, solicitor and mortgage product. It is worth understanding the likely costs early so you know how much deposit you really have available.
A first-time buyer review is not just about finding out how much you may be able to borrow. The right mortgage needs to fit your income, deposit, credit profile, property plans and monthly budget.
I will look at your position before you start applying, so you can understand what may be realistic, what documents may be needed and whether there are any issues to deal with early.
The cheapest rate is not always the most suitable option once fees, criteria, affordability and your wider plans are considered.
The documents needed will depend on your income, deposit, credit profile, lender choice and the property you are buying.
You do not need to have everything ready before booking a review call, but these are some of the documents that may be requested as the case progresses.
These documents help the lender understand your income, employment, monthly commitments and general affordability.
The exact documents needed can vary depending on whether you are employed, self-employed, receive variable income, or have other income sources.
May include:
These documents help confirm your deposit position, property details and the purchase you are looking to complete.
The lender and solicitor may need to understand where the deposit is coming from and whether the property meets the lender’s criteria.
May include:
You do not need to know exactly which documents apply before speaking to me. The first step is to understand your position, then I can explain what is likely to be needed based on your income, deposit and lender route.
Clear answers to common first-time buyer questions, from deposits and affordability to surveys, costs and the next steps after your offer is accepted.
Many lenders allow first-time buyers to purchase with smaller deposits, although the options available and interest rates can vary depending on your circumstances.
This depends on factors such as your income, monthly commitments, credit profile and the lender’s affordability assessment.
Not always, but having one in place can help you understand your budget and may strengthen your position when making offers.
In most cases, we recommend waiting for the lender’s valuation first before committing to a more detailed homebuyer survey.
You may also need to budget for solicitor fees, surveys, moving costs and potentially stamp duty depending on the purchase price.
Yes. Many lenders accept self-employed applicants, although they may assess income differently depending on your business structure and accounts.
Many buyers choose to consider protection policies designed to help cover mortgage payments or support their family if circumstances change in the future. Whilst not mandatory they are an important consideration in proper planning.