First-time buyers: what to expect from start to finish

Buying your first home can feel like a lot to juggle. Mortgage decisions, documents, property checks and timelines all overlap—so it helps to understand the main stages before you begin.

This overview brings the process together in one place, so you know what typically happens and where the key moving parts are.

Important: Your home may be repossessed if you do not keep up repayments on your mortgage.

The first step: get your mortgage position clear

Before you start viewing properties, it’s usually helpful to understand what you could borrow and what your monthly payments might look like.

Lenders assess affordability based on your income and outgoings. They also consider factors such as:

• the size of your deposit
• the type of property you want to buy
• your employment and income profile
• your existing financial commitments

Agreement/Decision in Principle (AIP/DIP)

An Agreement/Decision in Principle is often an early step. It doesn’t replace a full mortgage application, but it can help you:

• understand the rough lending range you may be considered for
• show estate agents you’re ready to proceed when you find a property
• avoid spending time on homes that may be outside your realistic budget

What to remember:

• it is not the same as a full offer after underwriting
• the final decision depends on the property, the valuation and the information provided at application
• it is typically valid for a limited period

Affordability: how lenders look at your situation

Many first-time buyers focus on the property price. Lenders focus on whether the mortgage fits your finances—both now and in the context of your wider commitments.

What affects how much you can borrow

While each lender’s approach can differ, affordability is commonly influenced by:

• Income (including whether it’s considered reliable and sustainable)
• Monthly commitments (credit commitments, loans and certain deductions)
• Deposit size (which can affect lending options)
• Employment type and history
• Age and mortgage term
• Household circumstances (for example, dependants and childcare costs)

Income types: what may be counted

Different income sources can be treated differently. Common examples include:

• PAYE salary: often assessed as straightforward, subject to lender rules
• Overtime and regular commission: may be considered if consistent and evidenced
• Bonuses: may be used depending on how frequently they’re paid and how predictable they are
• Allowances: sometimes included where they can be evidenced
• Self-employed income: usually requires more supporting documentation and a longer record
• Zero-hour and fixed-term contracts: may be considered, but lenders often apply specific requirements

Commitments: what can reduce the amount you’re offered

Commitments are the regular financial obligations that reduce the amount left over for mortgage payments. These can include:

• credit cards and loans
• car finance
• student loan deductions
• childcare-related costs (where applicable)
• service charges/ground rent for flats (where applicable)

It’s also worth noting that lenders may treat certain items differently—for example, how credit balances are viewed or how specific pay slip deductions are handled.

Typical costs when buying your first home

A mortgage is only part of the picture. Planning for the wider costs can help you avoid surprises.

Stamp Duty Land Tax (SDLT)

SDLT depends on the purchase price and your circumstances. Some first-time buyers may qualify for reduced or nil SDLT in certain cases.

Legal fees (conveyancing)

You’ll need a solicitor or conveyancer to manage the legal work. Costs can vary depending on the property type and complexity (for example, leasehold versus freehold).

Mortgage lender and arrangement-related fees

Many mortgages include charges such as an arrangement fee. There may also be valuation-related costs depending on the lender and product.

Survey and valuation costs

A mortgage valuation is carried out for the lender’s purposes. You may also choose a survey for your own peace of mind, and the level you select can affect cost and depth.

Surveys: choosing the right level of property check

For first-time buyers, deciding on a survey is often one of the most important choices.

Standard mortgage valuation

This is typically the most basic check and is mainly for the lender to decide whether the property is acceptable for the mortgage.

HomeBuyer’s Report

Usually more detailed than a standard valuation. It focuses on the condition of the property and can highlight issues that may need attention.

Building or full structural survey

Often chosen for older properties, unusual construction types, or where you want a deeper inspection. It can provide a more comprehensive assessment of condition and potential defects.

Flats: what first-time buyers should watch for

Flats can be a great first step, but leasehold properties often come with extra considerations.

Lease length (leasehold)

Most flats are leasehold, meaning you buy the right to occupy for a set number of years. A lease that is too short can create problems for lending and future resale.

If you’re considering a flat with a shorter lease, it’s important to factor in the potential cost and timing of extending it.

Service charge and ground rent

Leasehold properties usually involve ongoing costs such as:

• service charge (often for communal areas and building insurance)
• ground rent (where applicable)

These costs can affect affordability and should be reviewed carefully.

Flats above or very close to commercial premises

Some lenders may be cautious about flats above shops or close to certain commercial uses. The impact can depend on the specific property and the nature of the commercial premises.

Insurances you’ll typically need

Mortgages usually require buildings insurance. For leasehold properties, buildings insurance may be arranged through the freeholder in line with the lease, but it’s still important to understand how it works.

First-time buyers commonly also consider:

• contents insurance (to protect belongings)
• life cover (to help protect dependants if the worst happens)
• income protection / critical illness options (to help manage payments if you can’t work)

The right mix depends on personal circumstances, but the key is to plan for the financial impact of unexpected events.

After your offer is accepted: what happens next

Once you’ve agreed a purchase, the process moves into the legal and mortgage application stages.

Mortgage application and underwriting

After an offer is accepted, the mortgage application is progressed with the lender. The lender will typically:

• review the evidence provided
• check credit information
• consider the valuation outcome

In many cases, the lender will require a valuation carried out by an independent valuer. If the valuation raises concerns, the lender may require changes before issuing a full mortgage offer.

Mortgage offer and protection planning

When the lender is satisfied, a formal mortgage offer is issued. At this stage, it’s often sensible to ensure the required insurances are in place so you’re ready for exchange of contracts.

Conveyancing and searches

Your solicitor handles the legal work, which can include searches, reviewing the contract pack and liaising with the other side.

Exchange of contracts and completion

• Exchange of contracts is when the transaction becomes binding.
• Completion is when the purchase finishes and keys are released.

Timings vary depending on the chain, property type and how quickly searches and mortgage requirements are satisfied.

A final reminder for first-time buyers

Every purchase is different, but the core steps tend to follow a similar pattern:

1. clarify affordability
2. secure an early lending position
3. choose the right surveys
4. plan for insurances and wider costs
5. understand what happens after acceptance

If you keep track of the main stages—mortgage application, valuation, legal process and exchange/completion—you’ll be better placed to move forward with confidence.