Guide for First-Time Buyers: Navigating the Mortgage Process
- Drummonds Financial Group
- Jan 8, 2025
- 3 min read
Updated: Dec 31, 2025
Purchasing your first home is one of the most exciting milestones you’ll experience, but it also comes with its fair share of stress and complexity. Understanding how mortgages work and how to find the best deal for you is crucial. That’s where we come in.
At Drummonds Finance Group, we simplify the mortgage process and guide first-time buyers through every step with clear, expert advice. Whether you’re just starting to explore the property ladder or you’re ready to apply, this guide will give you confidence from beginning to end.
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.
Understanding What You Can Afford
Before applying for a mortgage, lenders will assess affordability. This is based on:
Your income
Regular outgoings
Existing credit commitments
Your credit history
As a rough guide, many lenders will lend between 4 and 4.5 times your income, but this can vary depending on your circumstances. Some Lenders might be able to offer between 5 & 6 Times income. Check out our page on 5x and 6x income
If you are self-employed or have a more complex income, getting tailored advice early on is crucial. Our Mortgage Advice page explains how different income types are assessed and how we help maximise borrowing where possible.
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.
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
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