The complete guide to getting a mortgage as a first-time buyer

Buying your first home is a major milestone—but the mortgage process can feel complicated when you’re not sure what comes next. This guide explains the key stages in clear, straightforward terms, so you can plan ahead and avoid surprises.

It covers:

• how deposits work and why loan-to-value (LTV) matters
• how lenders assess affordability
• the main mortgage types you’ll see
• the costs to budget for beyond the deposit
• the step-by-step journey from application to completion
• common first-time buyer support schemes (where eligible)

1) Start with the deposit (and understand LTV)

For many first-time buyers, the deposit is the biggest factor you can control. It affects the loan-to-value (LTV) ratio—how much you’re borrowing compared to the property price.

What is LTV?

LTV = mortgage amount ÷ property value

In general terms:

• Higher LTV (smaller deposit) can mean fewer options and may increase the cost of borrowing.
• Lower LTV (larger deposit) often improves the range of deals available.

Even if you’re focused on monthly payments, LTV can influence both the mortgage terms and the overall cost.

Where can your deposit come from?

Your deposit may come from a combination of:

• savings
• gifts from family (where accepted)
• government-backed support (where eligible)

Lenders typically need to understand the source of funds and that the money is available when required.

2) How lenders assess affordability

A mortgage isn’t approved based on income alone. Lenders carry out affordability checks to understand whether you can make repayments reliably.

What affordability checks usually consider

Most lenders look at:

• your income (and whether it appears stable)
• your regular outgoings (including existing credit commitments)
• essential living costs
• any other financial commitments
• the mortgage payment you’re applying for

Because affordability is assessed in detail, two people with similar incomes can receive different outcomes depending on their overall financial picture.

Income multiples: a useful guide, not a guarantee

You may hear figures such as “4 to 4.5 times income” for typical cases, but lenders don’t use a single rule for everyone. Your deposit, outgoings, employment situation, and the exact mortgage you’re applying for can all affect the result.

3) Choose the right mortgage type for your situation

Mortgage products differ in how the interest rate works and how predictable your payments are.

Fixed-rate mortgages

A fixed rate keeps the interest rate the same for an agreed period (commonly 2, 3, or 5 years). This can help you budget if you want payment stability.

Tracker mortgages

A tracker mortgage follows a reference rate (often a base rate index) plus a margin. Payments can move up or down as the reference rate changes.

Standard Variable Rate (SVR)

An SVR is the lender’s default rate, which can change over time. Many borrowers aim to avoid staying on an SVR longer than necessary.

Discounted mortgages

A discount is set against the lender’s SVR for a defined period. The discount reduces the rate temporarily, but the SVR can still change.

Thinking beyond the headline rate

When comparing mortgages, it’s worth looking at the total picture:

• the interest rate and how long it lasts
• any product fees
• early repayment rules (including overpayments)
• how the mortgage may behave once the initial period ends

4) Budget for the full cost of buying

A common first-time buyer mistake is focusing only on the deposit and mortgage payment. There are usually additional costs to plan for.

Stamp Duty Land Tax (SDLT)

SDLT depends on the purchase price and whether you qualify as a first-time buyer. The rules can change, so it’s important to check the current position for your circumstances.

Legal fees (conveyancing)

You’ll typically pay a solicitor or licensed conveyancer to handle searches, contract review, and the legal transfer of the property.

Survey and valuation

The lender will carry out a valuation for their own purposes. Many buyers also commission a survey to understand the property’s condition and identify potential issues.

Mortgage fees

Some mortgages include arrangement fees; others may be fee-free but could have different pricing. The “best” option depends on the total cost over the period you expect to keep the mortgage.

Ongoing costs

You should also consider:

• buildings insurance (often required from exchange)
• moving costs
• initial maintenance and furnishing

5) The mortgage process, step by step

Knowing the order of events can make the process feel more manageable.

Step 1: Decision in Principle (DIP)

A DIP is an initial indication that you may be able to borrow, based on the information you provide. It’s not the same as a full mortgage offer, but it helps you understand what’s possible before you commit to a property.

Step 2: Find a property and make an offer

Once you have a DIP, you can move forward with viewings and offers. After your offer is accepted, the legal process and mortgage application typically progress alongside each other.

Step 3: Full mortgage application

A full application involves more detailed information and evidence, such as:

• proof of identity
• proof of income
• details of your deposit
• information about your outgoings

Step 4: Valuation and mortgage offer

The lender will arrange a valuation. If the property meets the lender’s requirements and the application is satisfactory, you’ll receive a formal mortgage offer.

Step 5: Exchange of contracts

Exchange is the point where both parties become legally committed. Your solicitor coordinates the deposit payment and ensures key conditions are in place (including insurance).

Step 6: Completion and keys

Completion is when the remaining funds are transferred and ownership passes. You receive the keys once the transaction is complete.

6) First-time buyer support schemes (where eligible)

Depending on your circumstances, certain schemes may help with deposit requirements or affordability.

Shared Ownership

Shared Ownership allows you to buy a share of a property and pay rent on the remaining share. Over time, you may be able to increase your share.

Lifetime ISA (LISA)

A Lifetime ISA can provide a government bonus on eligible savings, which may be used towards a first home purchase (subject to scheme rules).

Right to Buy

If you’re a qualifying tenant of a council or housing association, you may be able to purchase your home at a discount.

Guarantor options (in some cases)

Where a lender is concerned about deposit or affordability, a guarantor arrangement may be considered. This is not a universal solution and depends on lender criteria and the overall application.

7) Prepare your finances before you apply

A mortgage application is often decided on the details. Small improvements before you apply can help your application look stronger.

Check your credit file

Look for inaccuracies and make sure your details are correct. If you spot errors, addressing them early can prevent delays.

Avoid new credit close to application

Taking on additional credit shortly before applying can affect affordability calculations and may influence lender decisions.

Reduce high-cost debt where possible

Credit card balances and other revolving debt can weigh on affordability. Paying down balances can help improve your financial position.

Keep spending patterns stable

Lenders may review recent bank statements. Unusual or irregular spending can raise questions that need explaining.

Save consistently

Regular saving can support your overall application narrative and help you build a deposit.

Keep employment stable (where you can)

Frequent job changes can complicate affordability assessments, particularly if income is variable.

8) Common questions first-time buyers ask

Can I get a mortgage if my credit isn’t perfect?

It depends on the type of credit issue, how recent it is, and how it affects your overall financial position. Some borrowers may have options through specialist routes, but the key is understanding how lenders are likely to view your circumstances.

How long does the process take?

Timelines vary based on lender processing, how quickly documentation is provided, and whether there’s a property chain. From application to offer can take weeks, while the journey from offer acceptance to completion is often longer.

Do I need a survey?

A lender valuation is not the same as a survey for your benefit. A survey can help you understand the property’s condition and identify potential issues.

Can I overpay my mortgage?

Many mortgages allow overpayments, but the rules depend on the deal. Checking the overpayment terms before you commit is important.

What is conveyancing?

Conveyancing is the legal process of transferring property ownership. Your solicitor or conveyancer manages searches, reviews the title, handles contract exchange, and coordinates completion.

Final thoughts: making the mortgage process feel clearer

A first-time buyer mortgage is a structured process, but it’s also personal. Your deposit, income and outgoings, the property you choose, and the mortgage type you select all influence what’s possible.

If you work through the steps—planning your deposit, understanding affordability, budgeting for buying costs, and preparing your finances—you’ll be in a stronger position to move forward with confidence.

Mortgage advice is regulated. If you’d like to discuss your options, speak to a qualified mortgage adviser.