🏡 1. Start with Financial Preparation
Save for Your Deposit
Your mortgage deposit is the biggest upfront cost.
▪ Most lenders expect at least 5% of the property price as a deposit. Saving 10% or more typically gets you access to better mortgage rates and more options. �
Cloud Mortgages
💡 Example: For a £300,000 house, 5% is £15,000, and 10% is £30,000. �
HomeOwners Alliance
Government help:
A Lifetime ISA (LISA) lets you save up to £4,000/year and get a 25% bonus from the government — potentially £1,000 free each year. �
Cloud Mortgages
Tip: Saving more than the minimum deposit not only improves your chances with lenders but often reduces your monthly repayments and interest cost.
🧾 2. Organise Your Credit & Documents
Before applying for any mortgage, make sure your finances and paperwork are in good shape.
Check Your Credit Score
Your credit history (e.g., credit cards, loans, bills) affects how lenders view you.
Check your reports from agencies like Experian, Equifax, and TransUnion — this gives you a higher chance of approval with good terms. �
Mortgageable
Get Your Financial Documents Ready
Common documents lenders ask for include:
Recent payslips
Bank statements
Proof of ID
P60 (tax summary)
Details of regular expenses
Lenders use these to determine what you can afford. �
Mortgageable
📊 3. Get a Mortgage Decision in Principle (DIP)
A Decision in Principle (DIP) (sometimes called a mortgage in principle) is an estimate of how much you might be able to borrow.
It doesn’t guarantee a mortgage, but it shows estate agents and sellers that you’re serious and ready to proceed. �
HSBC UK
🔎 You can get a DIP online, over the phone, or via a broker, often within minutes. �
HSBC UK
Tip: Having this before house‑hunting makes your offers stronger and speeds up the buying process.
🏘️ 4. Start House Hunting
Once you know roughly how much you can borrow and have your finances organised, start searching for properties that fit your budget.
What to do during house search:
Create a “must‑haves” vs “nice‑to‑haves” list. �
Evolution Money
Attend viewings and compare neighbourhoods. �
Evolution Money
Keep your budget realistic — remember Stamp Duty and other buying costs too. �
MaPS
🗺️ First‑time buyers often look in areas where affordability is better; some regions outside London can be significantly cheaper. �
Financial Times
📑 5. Make an Offer and Apply for a Mortgage
Make an Offer
Once you find a property you love, make an offer through the estate agent. If accepted, you’ll move on to the mortgage application.
Apply for Your Mortgage
Now you start the formal mortgage application. A broker can help you find the best deal from a wide range of lenders. �
HomeOwners Alliance
Lenders will:
Check your full application
Run a full credit check
Instruct a valuation of the property
Once everything checks out, they issue a formal mortgage offer. �
HomeOwners Alliance
💡 Tip: Larger deposits usually unlock lower interest rates and better mortgage deals.
🧑⚖️ 6. Arrange Legal Support (Conveyancing)
You must hire a solicitor or licensed conveyancer — they handle all legal aspects of buying a house.
They will:
Conduct searches (local authority, environmental, etc.)
Handle contracts between you and the seller
Deal with land registry and ownership transfer
This process runs alongside your mortgage approval. �
HSBC UK
🕵️ 7. Valuation and Survey
Before completion, your mortgage lender will arrange a valuation to confirm the property’s worth — this protects their loan.
You might also want a homebuyer survey or building survey at your own cost. These check for:
Structural issues
Maintenance problems
Future repair costs
Surveys give peace of mind and negotiating power if issues are found. �
HSBC UK
📜 8. Review Mortgage Offer & Complete Legal Work
Once your offer is received:
Carefully check the terms and conditions
Ask your solicitor if anything is unclear
Your solicitor completes all legal work, including exchange of contracts — when you pay your deposit and agree a completion date. �
HSBC UK
🔑 9. Exchange & Completion
These are the final stages:
Exchange Contracts
This legally binds you and the seller. You’ll usually pay your deposit (typically 5–10%). �
HSBC UK
Completion
This is moving‑in day!
Your solicitor transfers the rest of the money to the seller, and you get the keys. �
HSBC UK
💷 10. Pay Stamp Duty and Consider Running Costs
As a first‑time buyer, you may benefit from tax relief:
In England & Northern Ireland, no Stamp Duty up to £300,000; reduced rate on £300k–£500k. �
MaPS
In Scotland, no tax on properties up to £175,000. s, no Land Transaction Tax up to £225,000. oing costs:
Mortgage payments
Bills, insurance, maintenance
📍 Additional Tips for First-Time Buyers in 2026
Interest rates & product choice: Fixed vs variable rates offer different benefits — fixed gives stability but less flexibility, variable can save money if rates fall. �
MoneyWeek
Loan‑to‑income rules: Some lenders now offer mortgages of up to ~6× salary for qualifying buyers, improving borrowing potential. �
HomeOwners Alliance
No‑deposit options: A few specialised products (like 98% or 100% LTV mortgages) help buyers with small deposits — but they carry higher risk. �
The Guardian
Family help: Many first‑time buyers use family support for part of the deposit — but options exist without this if you save diligently. �
Financial Times
🏁 Final Thought
Buying your first home in the UK can be long, but preparing early and understanding each step makes the process much smoother. Start with savings, get your credit in order, and don’t skip getting a mortgage in principle before you begin house‑hunting — these early steps greatly improve your chances of success. �
HSBC UK