What No One Tells First-Time Buyers About Getting a Mortgage
- Jan 8, 2025
- 5 min read
Updated: Feb 25
Buying your first home is exciting. It is also one of the most misunderstood financial processes in the UK.
Most first-time buyers believe the hardest part is saving a deposit. In reality, that is often only the beginning.
At Drummonds Finance Group, we regularly speak to buyers who have done everything “right” but still feel confused once they begin speaking to lenders or estate agents. The mortgage process is not difficult, but it is rarely explained clearly.
This guide focuses on the things most first-time buyers are not told.
The Lowest Rate Is Not Always the Best Mortgage
Many buyers begin by searching for the lowest interest rate online. What they do not realise is that lenders apply completely different affordability models.
Two lenders offering similar rates may allow dramatically different borrowing amounts. One may accept bonus income, while another ignores it entirely. One may allow a higher income multiple, while another restricts borrowing due to minor credit issues.
The rate matters. The criteria matter more.
What Is a Mortgage?
A mortgage is a loan used to buy a property. You repay it over an agreed period, usually between 25 and 40 years, with interest added. The loan is secured against the property, which means the lender has the right to repossess it if repayments are not maintained.
Choosing the right mortgage from the outset is important, as it can affect your monthly payments, long-term costs, and future flexibility. This is where professional mortgage advice becomes invaluable.
If you are completely new to the process, our First-Time Buyer Mortgage page explains the basics in more detail and outlines how we support buyers from start to finish.
How Much Deposit Do First-Time Buyers Need?
Most first-time buyers will need a minimum deposit of 5 per cent of the property value, although a larger deposit often gives access to better mortgage rates and more lender options.
For example:
A 5 per cent deposit on a £300,000 property is £15,000
A 10 per cent deposit would be £30,000
If your deposit is being gifted by family, this is very common and accepted by many lenders, provided it is structured correctly. If this applies to you, our Gifted Deposit Mortgage Advice page explains how lenders view gifted funds and what paperwork is required.
A Mortgage Decision Is Not Just About Income
Most buyers assume their salary determines what they can borrow. In reality, lenders assess monthly commitments, spending patterns, credit history and even future changes in circumstances.
A car finance agreement, student loan balance or childcare costs can reduce affordability more than many expect.
Understanding this early avoids disappointment when viewing properties above your realistic budget.
Estate Agents Are Not Mortgage Advisers
Estate agents are important in the buying process, but their role is to sell property. Many will recommend speaking to their in-house adviser, which may be suitable, but it is important to understand that this is not your only option.
An independent broker with whole-of-market access can often provide a broader view of lender criteria.
If you are unsure how this works, our First Time Buyer Mortgage page explains the differences between independent advice and direct bank applications.
The Deposit Is Only One Part of the Cost
First-time buyers are often surprised by additional costs beyond the deposit. Legal fees, survey costs and lender arrangement fees can add several thousand pounds.
Some lenders allow fees to be added to the mortgage, while others require them upfront. Understanding the full picture before offering on a property prevents unnecessary stress.
Credit History Matters More Than You Think
Even small historical issues can affect lender choice. Missed payments from several years ago may not prevent a mortgage, but they may reduce the number of lenders available.
This does not mean you cannot buy. It simply means careful lender selection becomes more important. Our Poor Credit Mortgage guidance explains how different lenders treat adverse credit.
The Mortgage Offer Is Not the Finish Line
Many first-time buyers believe that once a mortgage offer is issued, everything is secure. In reality, circumstances must remain stable until completion.
Changing jobs, taking on new credit or missing payments between offer and completion can create complications.
Clear guidance throughout the process reduces these risks.
Key Factors to Consider Before Applying
1. Deposit Size
Your deposit is the money you put down upfront when buying a home. Most first-time buyers need at least 5% of the property price as a deposit, although higher deposits can unlock better mortgage rates.
2. Types of Mortgages
Fixed-Rate Mortgages – Your interest rate stays the same for a set period (e.g., 2, 5, or 10 years).
Variable-Rate Mortgages – Rates can change with the lender’s baseline or Bank of England base rate.
Choosing the right type depends on how much certainty you want with your monthly payments.
3. Affordability and Credit
Lenders assess your income, outgoings, credit history, and financial commitments before offering you a mortgage. A strong credit profile can improve your chances of approval and access to competitive rates.
4. Additional Costs to Budget For
Aside from your deposit and monthly mortgage repayments, you’ll need to budget for:
Legal and conveyancing fees
Stamp duty (if applicable)
Property valuation and survey fees
Moving costs
Insurance costs
The Mortgage Process Step by Step
1. Initial Mortgage Advice
This is where we discuss your income, deposit, credit history, and future plans. We identify suitable lenders and mortgage products based on your circumstances.
2. Agreement in Principle
We arrange this with a lender to confirm your borrowing potential before you start making offers.
3. Property Offer Accepted
Once your offer is accepted, we move forward with the full mortgage application.
4. Full Mortgage Application
The lender will request documents such as payslips, bank statements, and ID. They will also arrange a valuation on the property.
5. Mortgage Offer Issued
If everything is approved, the lender issues a formal mortgage offer.
6. Legal Work and Completion
Your solicitor handles the legal work. Once completed, funds are released, and you receive the keys to your new home.
Throughout the process, we liaise with lenders, solicitors, and estate agents to keep everything moving smoothly.
Thinking About Buying Your First Home?
If you are considering purchasing your first property and want clarity before you start viewing homes, we would be happy to talk through your situation.
Drummonds Finance Group provides straightforward advice tailored to your income, deposit and long-term goals.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Speak to a First-Time Buyer Mortgage Adviser
If you are thinking about buying your first home, the best place to start is a conversation. We can review your situation, answer your questions, and help you understand what is realistically achievable.
👉 Contact Drummonds Finance Group today
Comments