Mortgage guide
First-time buyer mortgage guide
Buying your first home involves more than finding a mortgage rate. You need to think about the deposit, affordability, upfront costs, property checks, legal work and what happens between making an offer and getting the keys.
Before house hunting
Start with what you can afford comfortably.
Before focusing on a property price, work out the amount you can realistically commit each month while still covering normal living costs and keeping a sensible financial buffer.
A lender will assess affordability using its own criteria, but your personal budget should also allow for council tax, utilities, insurance, maintenance and the other costs of owning a home.
Buying at the absolute top of your borrowing capacity can leave less room for rate changes, repairs and other life costs.
Deposit
Your deposit affects how much you need to borrow.
Your deposit is the part of the purchase price you provide yourself. The mortgage covers the balance.
The relationship between the mortgage and property value is the loan-to-value — LTV. A larger deposit usually means a lower LTV and can widen the mortgage options available, although lender criteria still apply.
Example
Buying for £250,000 with a £25,000 deposit means borrowing £225,000 — a 90% LTV mortgage.
Source of deposit
Lenders and solicitors may need evidence showing where the deposit came from, including gifted deposits.
Upfront costs
Keep money aside for more than the deposit.
Legal/conveyancing fees
Your conveyancer or solicitor handles the legal transfer of the property and associated searches.
Survey
A survey can provide more information about the property's condition than the lender's valuation alone.
Mortgage fees
Products can include arrangement, booking or valuation fees. Some can be added to the mortgage, which means paying interest on them.
Moving & setup costs
Removals, furniture, insurance and immediate repairs can all add to the amount needed.
Stamp Duty Land Tax rules depend on the purchase price and your circumstances. First-time buyer relief can apply in England and Northern Ireland where the qualifying conditions are met, so the current thresholds should be checked before exchange.
Mortgage process
Get the mortgage position clear before committing to a purchase.
1. Review affordability
Assess income, commitments, deposit and the monthly payment you can sustain.
2. Agreement in Principle
An AIP or DIP can give an initial indication of likely borrowing, but it is not a final mortgage offer.
3. Make an offer
Once you find a suitable property, you can negotiate through the estate agent.
4. Full mortgage application
The lender carries out detailed affordability, credit and property checks.
Property checks
The lender's valuation is not the same as a survey.
A mortgage valuation is primarily for the lender to assess whether the property provides acceptable security for the loan.
A buyer may separately choose a more detailed survey to understand the condition of the property and identify potential defects or repair issues.
The valuation and your own survey serve different purposes.
After your offer is accepted
The purchase is not complete until the legal process finishes.
Your solicitor or conveyancer carries out legal checks, searches and enquiries while the lender completes its mortgage underwriting. Once both sides are ready, contracts can be exchanged.
In England and Wales, exchange of contracts is the point at which the transaction normally becomes legally binding. Completion then takes place on the agreed date, when funds are transferred and you can usually collect the keys.
If the purchase is delayed or circumstances change, the lender may need to reassess parts of the application.
First-time buyer advice
Buying your first home?
We can help you understand the borrowing range, deposit, mortgage options and application process so you know what is realistic before committing to a property.
Book a conversationThis guide is for general information only and is not personal mortgage, financial, tax or legal advice. Mortgage criteria, tax rules and property-purchase costs can change. Your home may be repossessed if you do not keep up repayments on your mortgage. Content checked against current GOV.UK, MoneyHelper and FCA guidance on 16 September 2026.