Key Takeaway

Getting a mortgage as a first-time buyer in the UK involves saving a deposit (typically 5% to 20% of the property price), checking your credit file, getting an agreement in principle from a lender to understand how much you can borrow, finding a property, submitting a full mortgage application, and completing the purchase. Lenders assess affordability based on your income, outgoings, and credit history, and you will also need to budget for stamp duty, valuation fees, and conveyancing costs. The entire process typically takes 8 to 12 weeks from offer acceptance to completion.

How Much Deposit Do You Need?

Most UK lenders require a deposit of at least 5% of the property’s purchase price, though 10% to 20% is more common and typically unlocks better interest rates. The larger your deposit, the lower your loan-to-value (LTV) ratio, which reduces the lender’s risk and often results in cheaper mortgage deals. For example, on a property costing £250,000, a 10% deposit is £25,000, giving you an LTV of 90%.

First-time buyers can use a Lifetime ISA (LISA) to save towards a deposit, with the government adding a 25% bonus on contributions up to £4,000 per year. You may also be eligible for schemes published on gov.uk that help reduce the deposit requirement, though availability and terms vary. Check current schemes directly on the government website.

Check Affordability and Get an Agreement in Principle

Before you start house hunting, check your credit file (available free from Experian, Equifax, or TransUnion) and correct any errors. Lenders use your credit history to assess whether you are a reliable borrower. Lenders must complete an affordability assessment to ensure you can afford the mortgage repayments both now and if interest rates rise, taking into account your income, regular outgoings, and any existing credit commitments.

An agreement in principle (AIP), also called a decision in principle, is a conditional statement from a lender showing how much they are willing to lend you based on an initial check of your income, outgoings, and credit file. An AIP is not a guarantee, but it helps you understand your budget and shows estate agents and sellers that you are a serious buyer. Most AIPs are valid for 60 to 90 days and can be obtained online in minutes.

The Mortgage Application Process

Once you have found a property and had your offer accepted, you submit a full mortgage application to the lender. The lender will arrange a valuation of the property to confirm it is worth the price you are paying (you pay for this, typically £200 to £500). They will also verify your income, employment, and outgoings in detail. This process typically takes 2 to 4 weeks.

If the lender approves your application, they issue a formal mortgage offer, which is usually valid for 3 to 6 months. At the same time, your solicitor or licensed conveyancer handles the legal work, including property searches, reviewing the contract, and arranging the transfer of ownership. Conveyancing typically costs £800 to £1,500 plus disbursements (search fees, Land Registry fees).

Read also: A Guide to Getting Your First Mortgage in the UK

Budget for Additional Costs

In addition to the deposit and monthly repayments, first-time buyers must budget for upfront costs. Stamp duty land tax (SDLT) applies in England and Northern Ireland, though first-time buyers benefit from relief on properties up to £425,000 (no SDLT on the first £425,000, then 5% on the portion from £425,001 to £625,000, as of July 2026; rates change, verify current thresholds on GOV.UK). Scotland and Wales have their own land transaction taxes with different rates and reliefs.

Other costs include the mortgage arrangement or product fee (£0 to £2,000, sometimes added to the loan), the valuation fee, conveyancing, buildings insurance (required from completion), and removal costs. According to MoneyHelper, first-time buyers should budget around 3% to 5% of the property price for these additional costs (MoneyHelper, 2026).

Next Steps

Start by checking your credit file, calculating how much deposit you can save, and using an online mortgage affordability calculator to estimate your borrowing capacity. Speak to an FCA-authorised mortgage adviser or broker for personalised guidance on lenders, products, and the application process. A broker can often access exclusive deals and handle much of the paperwork on your behalf.

Important: This article provides general educational information about mortgages in the UK and is not regulated mortgage advice or personalised financial, lending, or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Mortgage eligibility, rates, fees, and government schemes vary by lender, product, and your personal circumstances. Stamp duty rules differ across England, Scotland, Wales, and Northern Ireland. Speak to an FCA-authorised mortgage adviser before making any decisions. Your home may be repossessed if you do not keep up repayments on your mortgage.