How does the mortgage process work? Here, we share our step-by-step guide to getting a mortgage and purchasing your first home.
Buying your first home is an exciting milestone, and we’re here to make the mortgage process simple for you. From the step-by-step process you’ll need to go through to answering the most common questions we hear from first-time buyers, this guide covers everything you need to know to help you get started with your home purchase.
Quick steps to getting your first mortgage
- Check Your Budget – Use a mortgage calculator to see how much you can borrow. Try our free calculator here to get a better idea of your potential budget
- Save Your Deposit – Aim for at least 5%, but if you can save more, even 10%, you’ll have access to more competitive interest rate pricing
- Get Your Documents Ready – This will typically include proof of ID, proof of address, payslips, and bank statements
- Improve Your Credit Score – Pay bills on time and avoid taking out any new loans in the run-up to applying for your mortgage
- Choose the Right Mortgage Type – There are so many different types of mortgages on the market to support your home purchase. We’ll advise you on the best one to suit your needs
- Apply for a Mortgage in Principle – Often known as a DIP (Decision in Principle), having this in place shows estate agents and sellers you’re serious when you start house hunting
- Submit Your Full Application – The paperwork can seem a lot, but our team will help you to complete this and review it fully before we submit to your chosen lender to raise any potential issues early on
- Receive Your Mortgage Offer – Once approved, your solicitor handles the legal side
- Complete and Move In – Exchange contracts and get the keys to your new home!
How can I work out my budget as a first-time buyer?
Before you even start the house-hunting process, having a clear and realistic budget in mind is essential. Using an online calculator to work out how much you can borrow is a good place to start.
When it comes to applying for a mortgage, lenders assess your income, outgoings, credit score, and deposit to determine whether a mortgage is ‘affordable’ for you.
Speaking to one of our experts early on will give you a clearer idea of your budget and which lenders are likely to offer to you based on your individual circumstances.
How much deposit do I need to buy my first home?
As a first-time buyer, you can usually get started with a 5% deposit, though a larger deposit often unlocks better rates and lower monthly repayments.
What documents do I need for my mortgage application?
Having all your documents ready will prevent any delays down the line. Typically, you’ll need to provide:
- Proof of identity (passport or driving licence)
- Proof of address
- Recent payslips (typically last 3 months)
- Bank statements (typically last 3 months)
- Details of any loans or credit commitments
If you’re self-employed, you may need tax calculations and accounts from the last 1–2 years. Read our full guide to getting a mortgage when you’re self-employed here.
Which mortgage type is best for first-time buyers?
Choosing the right mortgage depends on your priorities and your individual circumstances:
- Fixed-rate mortgage: Your rate stays the same for a set period (typically 2 or 5 years), making them great for budgeting and offering long-term stability
- Variable-rate and tracker mortgages: Your payments can change depending on market conditions, so while your monthly mortgage costs may decrease, they could also rise unexpectedly too. This option gives you more flexibility, but less protection from market volatility
To give you confidence in your mortgage decision, we’ll compare all available products and explain how each option works.
How Do I Submit My Full Mortgage Application Successfully?
Once you’ve found a property, we’ll help you complete your full application, including:
- Your income, outgoings, and deposit details
- Property information
- Supporting documents
Our experts will thoroughly review your application before submitting it to your lender. This means that if there’s anything we think could potentially cause issues later, we’ll raise it early to save you time and money. Once your application is submitted, we’ll liaise with the lender, keep things moving, and update you at each stage to keep you informed.
What is the difference between a DIP and a full mortgage offer?
A DIP is an initial indication of how much you can borrow based on your declared income. One of our experts can help you secure a Decision in Principle today.
On the other hand, a full mortgage offer is a formal approval from your lender stating that they’re willing to offer you the loan after a full underwriting and property valuation process.
What fees should I budget for besides the deposit?
There are several fees to expect during the mortgage application and home purchase process. These can include (but are not limited to):
- Mortgage fees
- Solicitor or conveyancing fees
- Survey costs
- Moving costs
Read our full guide to these costs here.
Ready to start your mortgage application?
If you’re ready to get started, speak to our team of experts today! We’ll answer any questions you might have and support you throughout the whole process, call us on 0345 345 6788 or submit an enquiry here.
