First-Time Buyer Mortgages Explained
Buying your first home is exciting but can feel overwhelming. From understanding deposits to navigating applications, the process is often confusing. This guide breaks it down in simple terms for first-time buyers in the UK.
How Much Deposit Do You Need?
Most lenders require a minimum deposit starting around 5% of the property value. However:
More deposit can improve affordability and access better deals
Lenders consider deposit size along with income, credit history, and property type
It’s common for first-time buyers to underestimate what is actually required.
Step 1: Check Your Finances
Before applying, review:
Your credit score and history
Your available deposit
Any additional costs like legal fees or moving expenses
This helps set realistic expectations and avoids delays later in the process.
Step 2: Get an Agreement in Principle (AIP)
An AIP is a preliminary statement from a lender showing how much you could borrow. Benefits include:
Understanding your budget
Showing sellers you are a serious buyer
Highlighting any potential issues early
Remember, an AIP is not a guarantee — it is a starting point for the full application.
Step 3: Make an Offer on a Property
Once you know your budget and have an AIP:
Find a property within your price range
Make a formal offer through the estate agent
Include any contingencies, such as subject to mortgage approval
This step officially begins the path to owning your first home.
Step 4: Submit Your Full Mortgage Application
With an accepted offer:
Submit full documentation to the lender
Provide proof of income, bank statements, ID, and any other requested paperwork
The lender will carry out a full affordability assessment
This is when the mortgage is formally approved for completion.
Step 5: Legal Work and Conveyancing
Once approved, the legal process begins:
Solicitors handle searches, contracts, and registration
The lender arranges a valuation
Completion date is agreed and funds are transferred
Clear communication with your solicitor ensures the process runs smoothly.
Common Challenges for First-Time Buyers
Many new buyers face:
Confusion over deposit requirements
Understanding lender affordability rules
Overwhelm with legal documentation
Fear of rejection due to limited credit history
A broker can guide you through these challenges and make the process manageable.
How We Help First-Time Buyers
We provide:
Clear step-by-step guidance
Comparison of suitable lenders
Support through paperwork and application process
Advice to avoid common pitfalls
We do not guarantee borrowing with a 5% deposit and do not name lenders or provide rate figures.
The Takeaway
The first-time buyer mortgage process doesn’t have to be daunting. Start with your finances, get an AIP, and follow a structured approach. With the right support, you can navigate deposits, applications, and legal steps confidently — and move into your first home smoothly.
