Buying your first home is an exciting milestone, but it can also feel overwhelming, especially when it comes to financing. In this guide, we walk you through the key steps and answer common questions to help you confidently navigate the process.
How Can I Get a Mortgage?
The best thing you can do is speak to a mortgage broker (like us!). Think of us as your personal guide through the whole process.
We’ll talk with you to understand your financial situation, explain all the different mortgage options, and help you figure out what’s realistic for your budget. Whether you’re just starting to think about buying or have already spotted a place you love, our job is to make sure everything runs smoothly.
We're here to answer your questions, handle the paperwork, and make sure you feel confident every step of the way. No jargon, no stress, just clear advice and support.
Are First-Time Buyer Mortgages Different to Standard Mortgages?
Not really. First-time buyer mortgages are still standard mortgages. However, as a first-time buyer, you might qualify for better rates or be eligible to borrow slightly more than the typical 4.5 times your income. It’s just one of the ways lenders try to make things easier to help you onto the property ladder.
How Much Can I Borrow as a First-Time Buyer?
A general rule of thumb is to multiply your income by 4.5. However, this isn’t always completely accurate, as factors like existing debts and financial commitments also play a role. Some lenders may offer more than 4.5 times your income, which is why speaking to a broker is essential for setting a realistic budget.
To get a rough idea of how much you can borrow, use our calculator >>
A Brief Outline of the Mortgage Process
The mortgage process might sound a bit daunting at first, but it's pretty straightforward once you break it down. Here’s a step-by-step overview of what to expect:
- Initial Assessment
We’ll get to know you and your finances. That means looking at your income, regular outgoings, debts, and credit history. This helps us determine what kind of mortgage you might qualify for and how much you can borrow.
- Decision in Principle (DIP)
Once we’ve got these details, we’ll aim to get you a Decision in Principle. This is basically a lender saying, “Yes, we’d probably lend you this amount.” It’s useful when you’re house hunting because it shows sellers you’re serious and financially ready.
- Mortgage Application
Found your dream home and had your offer accepted? Amazing! Now we get to work submitting your full mortgage application to the lender.
- Lender Review
The lender will review your application and documents and arrange a valuation of the property. The valuation ensures that it is worth the price you’re paying and that it is a good investment.
- Mortgage Offer
If everything checks out, the lender will issue a formal mortgage offer. This is the official green light that says, “We’re lending you the money!”
- Legal Process
Now it’s over to the solicitor. They’ll handle all the legal bits, like making sure the property is legally sound, doing searches, and officially transferring ownership to you. If you don’t have a solicitor, we can help you find one and get them instructed.
- Exchange & Completion
You'll exchange contracts once all the legal bits are sorted and everyone’s happy. Then comes the best part: completion day. That’s when you get the keys and officially become a homeowner!
What Can Affect My Mortgage Application?
Several factors can impact your eligibility, including:
- Your income (which determines how much you can borrow)
- Existing credit or debts
- Adverse credit history
Lenders carefully consider each of these elements, but we can give you a rough guide of what to expect.
It’s always best to be upfront and honest about any credit issues or debts at the start of the process. Ultimately, the lender will find any issues, and you may waste money on fees only to have your application declined.
Other Than My Deposit, What Costs Can I Expect?
Beyond your deposit, you’ll need money budgeted for additional costs such as:
- Valuation fees
- Lender arrangement fees
- Solicitor fees
- Broker fees
- Stamp duty (if applicable, more on this below)
We always aim to provide a clear breakdown of all fees upfront to help you budget effectively.
Do I Need to Pay Stamp Duty?
While there are still exemptions for first-time buyers, you may need to pay if your property exceeds a certain price threshold. Use our stamp duty calculator to find out whether you’ll need to pay, and if so, how much.
Are you a first-time buyer?
If you’re just getting started with buying your first home, we’re here to help. We’ll go through the whole process with you to ensure you’re confident in your mortgage decisions and will be here to support you every step of the way.
Speak to our friendly experts today! Call us on 0345 345 6788 or submit an enquiry here.
