A First Time Buyer’s Guide to the Mortgage Process

Buying your first home is an exciting milestone, but it can also be overwhelming—especially when it comes to securing a mortgage. With so many options, jargon, and processes to navigate, it’s easy to feel lost. That’s where we at Complete Mortgage Advice step in, guiding you through every step of the mortgage journey and making the process as smooth as possible. In this guide, we’ll break down the mortgage process for first-time buyers in the UK and explain how we can help you get the best possible deal.

Step 1: Determine If You Are Mortgage Ready

Before you start house hunting, it’s crucial to determine whether you are mortgage-ready. Lenders will assess your financial situation to ensure you can afford a mortgage. Here are the key factors to consider:

• Deposit – Most lenders require a minimum deposit of 5% to 10% of the property price.
• Income and Affordability – Lenders will evaluate your income, outgoings, and existing financial commitments to determine how much you can borrow.
• Credit History – A good credit score increases your chances of mortgage approval. Checking your credit report and addressing any issues beforehand can be beneficial.
• Essential Documents – You will need to provide:
  • Proof of identity (passport or driving licence)
  • Proof of address (utility bills or bank statements)
  • Payslips (usually last three months) or last 2 years tax returns if self-employed
  • Bank statements (typically last three months)
  • Proof of deposit (savings statement or gift letter if receiving help from family)

At Complete Mortgage Advice we can arrange an initial mortgage appointment with you. As part of your appointment, we will be able to determine how much you can borrow on your mortgage. We provide tailored guidance to help get you mortgage ready.

Step 2: Understanding Mortgage Options

There are various types of mortgages available in the UK, and choosing the right one is crucial. The most common types include:

• Fixed-Rate Mortgage – Your interest rate stays the same for a set period (e.g., 2, 5, or 10 years), giving you stability in your monthly repayments.
• Variable-Rate Mortgage – Your interest rate can change, usually tracking the Bank of England base rate or the lender’s standard variable rate (SVR).
• Tracker Mortgage – Follows the Bank of England base rate plus a set percentage.
• Discounted-Rate Mortgage – Offers a reduced rate for an initial period before reverting to the lender’s SVR.

Not sure which mortgage type is right for you? We will assess your circumstances and recommend the right option for you, ensuring you don’t end up paying more than necessary.

Step 3: Securing a Mortgage Agreement in Principle (AIP)

A Mortgage Agreement in Principle (AIP) is a conditional offer from a lender stating how much they might be willing to lend you. Having an AIP can give you a stronger position when making an offer on a property, as sellers see you as a serious buyer.

We at Complete Mortgage Advice will help you obtain an AIP quickly, ensuring you know exactly what you can afford before you start viewing properties. This step also helps highlight any potential issues with your application early on, saving time and frustration later.

Step 4: Finding Your Dream Home

Once you have your AIP, you can start house hunting with confidence. Consider factors like location, transport links, local amenities, and future resale value. When you find a property you love, you can make an offer.

Step 5: Submitting Your Mortgage Application

Once your offer is accepted, the next step is submitting a full mortgage application. At Complete Mortgage Advice we take care of this for you so once your offer is accepted let us know and we will get to work to submit your application. As part of your application the lender will also conduct a mortgage valuation to ensure the property is worth the amount they’re lending.

Step 6: Mortgage Offer and Conveyancing

Once your application is approved, you’ll receive a formal mortgage offer. At this stage, your solicitor or conveyancer will handle legal aspects such as property searches, contract checks, and arranging the exchange of contracts.

We work closely with trusted solicitors and can recommend professionals who will ensure a smooth legal process, keeping you informed at every stage.

Step 7: Understanding Stamp Duty for First-Time Buyers

Stamp Duty Land Tax (SDLT) is a tax you usually have to pay when buying a property in England and Northern Ireland. However, as a first-time buyer, you may be eligible for relief, making your purchase more affordable. The stamp duty land tax is due to change from April 1^st 2025 the new criteria is as follows:

• No Stamp Duty on properties up to £300,000.
• Reduced Stamp Duty on properties between £300,001 and £500,000, where you only pay 5% on the amount above £300,001.
• If the property price is above £500,000, standard Stamp Duty rates apply.

This relief can save you thousands, making homeownership more accessible.

Step 8: Exchanging Contracts and Completion

Exchanging contracts is the point where your home purchase becomes legally binding. You’ll pay a deposit, and a completion date will be set. On completion day, the lender releases the mortgage funds, and you officially get the keys to your new home.

At Complete Mortgage Advice, we stay with you until the very end, ensuring everything runs smoothly and answering any last-minute questions you may have.

How Complete Mortgage Advice Can Help

Navigating the mortgage process as a first-time buyer can be daunting, but you don’t have to do it alone. Here’s how we make it easier for you:

• Expert Mortgage Advice – We search the market to find the right mortgage deal tailored to your needs.
• Stress-Free Application Process – We handle all the paperwork and liaise with lenders on your behalf.
• Access to Exclusive Deals – As mortgage specialists, we often have access to rates and products not available directly to the public.
• Ongoing Support – We’re here for you even after your mortgage is approved, offering advice on future remortgaging options.

Ready to Get Started?

If you’re a first-time buyer looking to secure a mortgage, we are here to help. Contact us today for expert guidance and a hassle-free mortgage journey. Your dream home could be closer than you think! 🏡💜

Tom Boulden
Mortgage Broker

📞 01752 905011

📧 info@completemortgageadvice.co.uk

🌐 www.completemortgageadvice.co.uk

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.