By Matthew Horan CeMAP · Mortgages
Quick answer: Buying your first home involves a lot of steps, but they follow a clear order: work out what you can afford, save a deposit, get a mortgage agreement in principle, find a property, apply for the mortgage, then complete the legal work and exchange. A broker can guide you through it, compare lenders and check your eligibility before you apply. Clarity Mortgages & Protection in Altrincham gives fee-free advice, with no obligation.
For first-time buyers, the process can feel confusing. There's new jargon, lots of paperwork and a lot of money involved. The good news is that once you know the steps, it becomes much easier to follow.
Here's a straightforward guide to what happens, and what to think about at each stage.
Step 1: Work out what you can afford
Start with your budget. Look at your income, your regular spending and what you'd comfortably pay each month. Then look at what lenders may be prepared to offer. Our post on how much you can borrow explains what they look at.
It's also worth remembering the costs beyond the mortgage payment, including utility bills, council tax, insurance and maintenance.
Step 2: Save your deposit
The size of your deposit affects the loan to value (LTV) of your mortgage, which is the amount you borrow as a proportion of the property's value. A larger deposit generally gives you a wider choice of lenders and often better rates, though smaller deposits are available.
Don't forget to budget for the other costs of buying, which can include:
Solicitor's or conveyancer's fees
A property survey
Mortgage fees, where applicable
Stamp duty, if it applies (check the current rules on GOV.UK, as first-time buyer reliefs can change)
Removal costs and furnishings
There are also government-backed schemes and savings products aimed at first-time buyers. The rules change, so check the current details before you rely on them. We can point you in the right direction.
Step 3: Check your credit and get your paperwork ready
Lenders will look at your credit history, so it's worth checking your credit reports with all three main agencies and correcting any errors. Make sure you're on the electoral roll. If your history isn't perfect, that doesn't automatically rule you out.
You'll usually need proof of ID and address, payslips, bank statements and, if you're self-employed, tax returns or accounts.
Step 4: Speak to a broker and get an agreement in principle
An agreement in principle (sometimes called a decision in principle) is an indication from a lender of how much they may be prepared to lend you, based on a first look at your details. It isn't a guarantee, but it shows estate agents and sellers you're serious.
A broker can help you choose a lender whose criteria suit you, which avoids applying somewhere that's likely to say no. If you're not sure whether you need one, read Do you need a mortgage broker?
Step 5: Find a property and make an offer
Once you know your budget, you can start viewing homes. When your offer is accepted, the property is usually marked as "sold subject to contract", but the sale isn't legally binding until contracts are exchanged. Either side can still withdraw until then.
Step 6: Apply for the mortgage
With an accepted offer, we submit your full mortgage application. The lender will check your documents, assess affordability and arrange a valuation of the property. If all goes well, they issue a mortgage offer.
Step 7: Legal work, survey and exchange
While the lender processes your application, your solicitor or conveyancer carries out searches and checks the legal title. You'll also want to consider a survey, which looks at the condition of the property beyond what the lender's valuation covers.
When everything is ready, contracts are exchanged and you're legally committed to the purchase. A completion date is agreed, and on that date the money transfers and you get the keys.
Don't forget protection
The best time to think about protecting your mortgage is before you exchange contracts. Our post on protection for first-time buyers explains which cover to consider and when to arrange it.
Common first-time buyer mistakes
Applying to several lenders at once. Multiple applications can leave marks on your credit file.
Taking on new credit. A new car loan or credit card before you apply can reduce what you can borrow.
Forgetting the extra costs. Fees and furnishing can add up quickly.
Not asking about protection. Your mortgage is a long-term commitment, so it's worth protecting the payments.
Waiting until you've found a property. Getting an agreement in principle first puts you in a stronger position.
Frequently asked questions
How much deposit do I need as a first-time buyer?
It depends on the lender and the deal. A larger deposit usually gives you more choice and often better rates. We'll explain what's available based on your situation.
How long does the process take?
It varies, but from an accepted offer to completion it often takes several weeks to a few months, depending on the property and the chain involved.
What is an agreement in principle?
It's a lender's initial indication of how much they might lend you. It isn't a guarantee, but it helps when you make an offer.
Do I need a broker to buy my first home?
Not necessarily, but a broker can compare lenders, check criteria before you apply and handle the paperwork, which many first-time buyers find helpful.
Can I get a mortgage if I'm self-employed?
Yes, in many cases. Lenders assess self-employed income differently, usually using your tax returns or accounts. We can help you prepare.
Does it cost anything to speak to you?
No. We don't charge a fee for our advice.
If you're thinking about buying your first home in Altrincham, Trafford or Cheshire, get in touch. It's fee-free with no obligation, and we'll guide you through each step.
About the author
Matthew Horan CeMAP is Principal of Clarity Mortgages and Protection, an independent, fee-free mortgage and protection broker based in Altrincham. He has over 10 years' experience helping individuals, families and business owners with mortgages and protection, and writes in plain English because most people aren't given the chance to understand what they're signing.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
This article is general information, not advice. What's right for you depends on your own circumstances. Acceptance of an application depends on the lender's criteria and is not guaranteed. Government schemes and tax rules change, so check the current position.
