A First-Time Buyer’s Guide to the Mortgage Process

Buying your first home is exciting, but it can also feel overwhelming. Mortgages, deposits, surveys, solicitors, and unfamiliar terminology can make the process seem far more complicated than it needs to be.

This guide explains the mortgage journey for first-time buyers in clear, simple terms, so you know what to expect and how to prepare before you start viewing properties.

Step one: understanding what you can afford

Before looking at properties, it is important to understand how much you can realistically borrow and what monthly payments might look like.

Lenders look at your income, regular outgoings, credit commitments, and overall financial stability. This includes things like loans, credit cards, car finance, and childcare costs. A mortgage adviser can assess your situation and give you a realistic budget before you commit to anything.

This stage often includes arranging a decision in principle, which shows estate agents and sellers that you are a serious buyer.

Step two: saving for a deposit and costs

Most first-time buyers need a deposit, usually starting from 5 per cent of the purchase price. In addition to the deposit, there are other costs to plan for, such as legal fees, surveys, and moving costs.

Some buyers use gifted deposits from family, which is usually acceptable to lenders when structured correctly. Understanding these costs early helps avoid surprises later.

Step three, choosing the right mortgage

There is no single best mortgage for first-time buyers. The right option depends on your income, deposit size, future plans, and attitude to risk.

You may need to decide between fixed or variable rates, repayment or interest-only elements, and how long you want payment certainty. A good adviser will explain the pros and cons in plain English and help you choose a mortgage that suits your situation, not just the lowest headline rate.

Step four: making an offer and submitting the application

Once your offer is accepted on a property, the full mortgage application can be submitted. At this stage, lenders will request documents such as payslips, bank statements, proof of deposit, and identification.

The lender will also arrange a valuation of the property to confirm it is suitable security for the loan. Your adviser manages communication with the lender throughout this stage and deals with any follow-up questions.

Step five, legal work and mortgage offer

While the mortgage application is being processed, your solicitor will begin the legal work. This includes searches, reviewing contracts, and raising enquiries with the seller’s solicitor.

Once the lender is satisfied, they issue a formal mortgage offer. This confirms the terms of the mortgage and allows the legal process to move towards the exchange of contracts.

Step six, exchange and completion

Exchange of contracts is the point at which the purchase becomes legally binding. Completion is when the mortgage funds are released, ownership transfers, and you receive the keys to your new home.

Your adviser and solicitor will guide you through these final steps to ensure everything runs smoothly.

Common mistakes first-time buyers should avoid

Many first-time buyers underestimate the importance of budgeting realistically or assume all lenders assess income in the same way. Others make changes to their finances during the process, such as taking out new credit, which can cause problems.

Getting advice early helps avoid these issues and keeps your purchase on track.

How professional mortgage advice helps first-time buyers

A mortgage adviser does far more than search for rates. They help structure your application correctly, choose suitable lenders, manage the process from start to finish, and explain everything clearly along the way.

For first-time buyers, having someone on your side can reduce stress, save time, and improve the chances of a successful outcome.