Mortgages for first-time buyers

Mortgages for first-time buyers: what to expect

Buying your first home is exciting—but mortgages can feel complicated. There are different mortgage types, lenders assess affordability in detail, and you’ll need to gather documents and plan for costs beyond the deposit.

This guide explains the main moving parts of getting your first mortgage in the UK, so you know what to prepare for and what questions to ask along the way.

Am I eligible for a mortgage?

For most first-time buyers, the starting point is simple: it may be possible, but eligibility depends on several factors that lenders use to assess whether you can afford the repayments.

Common things that influence eligibility include:

• How much you want to borrow
• Your deposit
• Your income and employment status
• Your monthly outgoings and existing debts
• Your credit history
• Your age and the mortgage term you’re seeking
• Whether you’re buying alone or with someone else
• The type and value of the property

A useful approach is to estimate affordability before you start viewing seriously. That helps you focus on homes that fit your budget and reduces the risk of disappointment later in the process.

What do lenders look at on my application?

Mortgage lenders aren’t only interested in whether you can make payments today—they also need to be confident you can manage repayments if circumstances change.

1) Your income

Lenders typically ask for evidence of income and may consider different types of earnings depending on your situation.

• Employed applicants: usually require payslips and evidence such as a P60
• Self-employed applicants: often need accounts and supporting evidence of income
• Other income: some lenders may consider certain regular income types, but it’s assessed case by case

2) Your outgoings

Your spending and existing commitments matter because they affect affordability.

Lenders commonly look at:

• credit card balances and other revolving credit
• loan repayments (car finance, personal loans, etc.)
• regular household bills and commitments
• any dependants or additional financial responsibilities

In practice, this means you may be asked for bank statements so the lender can understand your day-to-day financial position.

3) Changes to your circumstances (affordability checks)

Most lenders apply affordability checks that test whether you could still afford repayments under less favourable conditions. This might include scenarios such as:

• interest rates being higher than expected
• job changes or reduced income
• unexpected life events

If you’re applying with a partner, lenders will consider both applicants’ finances.

What documents do I need to submit for a mortgage application?

Mortgage applications require evidence of identity and financial circumstances. The exact list can vary by lender, but the categories below are typical.

Proof of identity

You’ll usually need documents that confirm who you are, such as:

• passport or driving licence
• council tax bill
• utility bills (often excluding mobile phone bills)

Proof of income (employed)

If you’re employed, lenders commonly request:

• recent payslips
• P60
• evidence of any regular bonuses or commission (where applicable)

Proof of income (self-employed)

If you’re self-employed, lenders often require:

• certified accounts (often for more than one year)
• evidence of earnings from HMRC (where relevant)
• details of contracts or trading history for contractors

Bank statements and financial evidence

Most applications also require bank statements so lenders can review:

• income deposits
• regular spending patterns
• existing debts and commitments

Why preparation matters

Having documents ready (and consistent) can reduce delays. It also helps ensure the information you provide matches what lenders will see during their checks.

What deposit will I need for my first mortgage?

The deposit is often the biggest hurdle for first-time buyers. In general, lenders expect a deposit amount that depends on the mortgage product and the property value.

A larger deposit can make it easier to secure a mortgage and may reduce the amount you need to borrow, which can improve affordability.

Deposits and lender calculations

Lenders typically consider the deposit alongside the property value to determine loan-to-value (LTV). LTV is a key factor because it influences risk and the mortgage options available.

Government schemes and special cases

If you’re using a government-backed help scheme, the rules can differ from a standard deposit arrangement. The key point is that the lender will still assess affordability and eligibility, but the way the deposit/support is treated may vary.

If you don’t have a deposit

A 0% deposit mortgage is uncommon and usually comes with stricter requirements. If you’re in this position, it’s important to explore alternative routes (for example, options that involve a guarantor, shared ownership, or other structured arrangements) and understand how they affect the overall cost and risk.

I have bad credit, can I still get a mortgage?

Bad credit doesn’t automatically mean you can’t get a mortgage. What matters is the type of issue, how long ago it happened, and how it affects your overall financial profile.

How lenders view credit issues

Lenders may consider factors such as:

• missed payments or defaults
• county court judgments (CCJs)
• the age of the adverse information
• how much debt you have and whether it’s being managed

Practical steps before applying

• Check your credit file for accuracy and up-to-date information
• Review your finances to understand what might be affecting affordability
• Avoid making major changes to your credit position right before applying

Why mortgage advice can help

Different lenders have different underwriting approaches. A broker can help you understand which lenders are more likely to consider your circumstances and how to present the application in the strongest way.

Do I need insurance for a mortgage?

Buildings insurance (usually required)

Most mortgage contracts require buildings insurance. The lender wants the property protected because it’s their security.

Other protection options

Other types of cover are not always mandatory, but many first-time buyers consider them:

• life insurance (to help repay the mortgage if you die)
• critical illness cover (to help with mortgage payments if you’re diagnosed with a specified illness)

Insurance needs depend on personal circumstances, so it’s worth thinking about what would happen to mortgage repayments if your income changed.

The house buying process: simplified

Understanding the timeline can make the process feel less overwhelming. While every purchase is different, a typical first-time buyer journey often looks like this:

Step 1: Mortgage decision in principle (DIP)

A DIP is an indication from a lender that they may be willing to lend up to a certain amount, subject to full checks.

Step 2: Find a property and make an offer

Once you have a budget in mind, you can view properties and make an offer through the estate agent.

Step 3: Mortgage application and valuation

After your offer is accepted, the mortgage application moves forward. Lenders will arrange a valuation to confirm the property is worth the purchase price.

Step 4: Appoint a solicitor

A solicitor handles the legal side of the purchase, including searches and contract work.

Step 5: Formal mortgage offer

If the lender is satisfied with the checks (including valuation), they issue a formal mortgage offer.

Step 6: Exchange contracts

Once legal work is in place and both sides are ready, contracts are exchanged and a completion date is set.

Step 7: Completion

On completion day, ownership transfers and you receive the keys.

Timing note: the overall process can vary. Delays can happen due to valuation issues, legal searches, or the seller’s position.

What happens when your first mortgage deal comes to an end?

Many first-time buyers start on a fixed-rate mortgage. Fixed deals usually end after a set period, after which you’ll need to consider your next option.

Common outcomes include:

• moving to a new rate with your existing lender
• switching to a different product (often called remortgaging)

At this stage, it’s helpful to review affordability and total costs, not just the headline monthly payment.

Costs to remember beyond the mortgage

While this guide focuses on mortgages, first-time buyers also need to plan for other costs that can affect affordability and budgeting, such as:

• solicitor and conveyancing fees
• survey costs (if you choose to get one)
• moving costs
• potential early repayment charges if you change deals soon after completion

Summary

A first-time buyer mortgage is built around affordability, evidence, and lender criteria. By understanding what lenders look for, preparing the right documents, planning your deposit, and considering protection and insurance, you can approach the process with more confidence.

If you’re dealing with credit issues or a more complex income situation, it’s especially important to ensure your application is positioned appropriately for the lenders most likely to consider it.