Getting your first mortgage in the UK involves saving a deposit (typically 5% to 20% of the property price), checking your affordability, obtaining an agreement in principle from a lender, finding a property, completing a full mortgage application, arranging surveys and conveyancing, then exchanging contracts and completing the purchase. First-time buyers in England and Northern Ireland benefit from stamp duty land tax relief on properties up to a certain threshold, and you may qualify for government schemes that reduce the deposit requirement.

Introduction

Buying your first home is a major financial commitment. The mortgage process can feel overwhelming, but breaking it into clear steps makes it manageable. This guide walks you through each stage, from checking what you can afford to collecting the keys on completion day. Understanding the terminology, the timeline, and the costs involved will help you navigate the process with confidence.

What You Will Learn

  • How to assess your affordability and save a deposit
  • The role of an agreement in principle (AIP) and how to get one
  • The steps from offer acceptance to completion
  • Stamp duty relief and schemes available to first-time buyers
  • Common mistakes and how to avoid them

Step 1: Check Your Affordability

Before you start house hunting, work out how much you can borrow. Lenders assess affordability by looking at your income, outgoings, credit history, and any existing debts. Most lenders will offer between 4 and 4.5 times your annual gross income, though this varies by lender and your circumstances. Use an online mortgage affordability calculator to get an initial estimate, but remember that lenders apply their own stress tests to ensure you can still afford repayments if interest rates rise. According to MoneyHelper, understanding your budget early prevents disappointment later and helps you focus your search on realistic options.

Step 2: Save Your Deposit

You will need a deposit, typically 5% to 20% of the property price. The larger your deposit, the lower your loan-to-value (LTV) ratio, which often unlocks better interest rates. First-time buyers can use a Lifetime ISA (LISA) to save, where the government adds a 25% bonus (up to £1,000 per year) on contributions used for a first home purchase. Start saving early, cut unnecessary spending, and set up a dedicated savings account. Remember that you will also need funds for surveys, conveyancing, stamp duty (if applicable), and removal costs.

Step 3: Get an Agreement in Principle

An agreement in principle (AIP), also called a decision in principle, is a conditional statement from a lender indicating how much they may lend you, based on a soft credit check. It is not a binding offer, but it shows estate agents and sellers that you are a serious buyer. You can obtain an AIP online or through a mortgage broker, usually within minutes. The AIP is valid for around 60 to 90 days and helps narrow your property search to homes within your budget.

Step 4: Find a Property and Make an Offer

Once you have your AIP, start viewing properties. When you find one you want to buy, make an offer through the estate agent. Offers are typically lower than the asking price, especially in a slower market. Once your offer is accepted, instruct a solicitor or licensed conveyancer to handle the legal work. Your solicitor will carry out local authority searches, check the title, and liaise with the seller’s solicitor.

Step 5: Complete Your Mortgage Application

After your offer is accepted, submit a full mortgage application to your chosen lender. The lender will conduct a hard credit check, verify your income (payslips, bank statements, tax returns if self-employed), and arrange a property valuation to confirm the home is worth the purchase price. This stage can take two to six weeks. The lender will issue a formal mortgage offer if everything is satisfactory. As outlined in foundational property guidance such as The Englishman’s House: A Practical Guide for Selecting and Building a House, understanding the property’s structure and value has always been central to the purchase decision.

Step 6: Arrange Surveys and Conveyancing

The lender’s valuation is basic. Consider paying for a more detailed survey (homebuyer’s report or full structural survey) to identify defects that may need repair. Your solicitor will continue with searches, review the contract, and raise any legal queries with the seller’s solicitor. You will also need buildings insurance in place before exchange, as it becomes your responsibility once contracts are exchanged.

Step 7: Exchange and Complete

Once all searches are complete, your mortgage offer is in place, and contracts are signed, you exchange contracts. At this point, you pay a deposit (typically 10% of the purchase price) and the sale becomes legally binding. Completion usually follows one to two weeks later. On completion day, the lender releases the funds to your solicitor, who transfers the money to the seller’s solicitor. You collect the keys and take ownership of your new home.

Read also: A First-Time Buyer’s Guide to Getting a Mortgage in the UK

Tips for First-Time Buyers

  • Use a mortgage broker. Brokers have access to the whole market, including exclusive deals, and can match you to suitable products.
  • Check your credit report. Correct any errors and improve your score before applying (pay bills on time, register on the electoral roll, reduce credit card balances).
  • Budget for all costs. Include arrangement fees, legal fees, survey fees, stamp duty (if above the relief threshold), and moving costs in your budget.
  • Take advantage of stamp duty relief. First-time buyers in England and Northern Ireland pay no stamp duty land tax on properties up to £425,000 (as of August 2026), and a reduced rate on the portion up to £625,000. Scotland and Wales have their own equivalent schemes (GOV.UK, 2026).
  • Consider government schemes. Shared ownership, First Homes, or other local schemes may reduce the deposit or purchase price required.

Common Mistakes to Avoid

  • Not checking affordability first. Viewing homes you cannot afford wastes time and causes disappointment.
  • Skipping the survey. A basic valuation does not spot structural issues; a detailed survey can save you from costly repairs.
  • Overstretching your budget. Borrow what you can comfortably afford, not the maximum the lender will offer. Remember that interest rates can rise.
  • Ignoring the small print. Read the mortgage terms carefully, especially early repayment charges, arrangement fees, and what happens when the deal period ends.

Frequently Asked Questions

How much deposit do I need as a first-time buyer?
Typically 5% to 20% of the property price. A 5% deposit is possible, but a larger deposit (10% or more) usually unlocks better interest rates.

What is an agreement in principle, and is it binding?
An agreement in principle (AIP) is a conditional statement from a lender indicating how much they may lend you. It is not legally binding and does not guarantee final approval, but it shows sellers you are a serious buyer.

Do I qualify for stamp duty relief?
In England and Northern Ireland, first-time buyers pay no stamp duty land tax on properties up to £425,000 and a reduced rate on the portion between £425,000 and £625,000 (as of August 2026). Scotland and Wales have their own schemes. Check the current thresholds on GOV.UK or the relevant devolved authority site.

Should I use a mortgage broker?
A broker can save you time and often access exclusive deals not available directly. Many brokers do not charge a fee to the buyer (they are paid by the lender), but confirm this upfront.

Conclusion

Getting your first mortgage in the UK is a step-by-step process that starts with understanding your affordability and saving a deposit, then moves through obtaining an agreement in principle, finding a property, completing your mortgage application, arranging surveys and legal work, and finally exchanging contracts and completing the purchase. Take advantage of first-time buyer reliefs and schemes, budget for all costs, and consider professional advice from a mortgage broker and solicitor. With careful planning and realistic expectations, you will be collecting the keys to your new home.

Important: This article provides general educational information about the mortgage process for first-time buyers in the UK. It is not regulated mortgage advice, and it is not personalised financial, lending, or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Your home may be repossessed if you do not keep up repayments on your mortgage. Stamp duty thresholds, government schemes, and mortgage eligibility vary by location, lender, and your individual circumstances. Rates and fees change frequently. Speak to an FCA-authorised mortgage adviser or visit MoneyHelper for guidance tailored to your personal situation before making any decisions.