Mortgage Advice for First Time Buyers

Mortgage Advice for first time buyers


Mortgage Advice for First Time Buyers

For first time buyers buying your first home can seem daunting but by understanding the mortgage process you are more likely to find the process a lot easier.

This post is designed to give you an overview of what you are to expect when purchasing your first home as first time buyers.

We will aim to explain the following:

  • Each step involved with buying your first home
  • The mortgage application process
  • The process after a mortgage has been submitted

We have broken down the process into 5 main steps.

Step 1). Establish how much deposit you have

Saving for a deposit is one of the biggest challenges currently facing first time buyers and is an important part of the buying process.

The amount of deposit you have available will directly affect what value of property you can buy, so it is important to know exactly how much you will have available.

There are lenders that will accept a 5% deposit but you may require a minimum of 10% depending on your personal circumstances.

Step 2). Find out how much you can borrow

As first time buyers it is essential to establish how much you can borrow when applying for a mortgage.

This amount will vary from lender to lender with some lending more than others.

The type of things that will affect how much you can borrow are:

  • Income
  • Outstanding debts such as credit cards, loans, and car finance
  • Amount of deposit
  • Credit score

Part of our service is to help you find out exactly how much you can borrow. As previously mentioned, the amount you can borrow will differ from lender to lender. As well as helping you find the most suitable mortgage deal, we can also help identify who will lend you the most money.

Step 3). Get a mortgage agreement in principle.

An agreement in principle is a lender confirming how much money you can borrow based on a range of information and a credit check.

We would recommend having an agreement completed before you start viewing properties. This will clarify your budget and can show estate agents you’re a serious buyer and have been provisionally accepted for a mortgage.

The agreement in principle will be submitted to the lender by your adviser. This will usually require a credit search being carried out. This is something that we can help assist you with.

It is not a guarantee of acceptance, but it does confirm that upon providing evidence of the information supplied they are  likely to accept a mortgage application.

Step 4). Find your new home.

This is one of the most exciting steps in buying your first home.

Now you have your agreement in principle and know exactly what you can afford, the house hunting can begin.

You can register online and see what properties are available within your budget.

Once you have a list of properties you like you can arrange viewings with the estate agent. It is always a good idea to view a few different properties so you can really get a feel for what is right for you.

Step 5.) Make an offer, instruct a solicitor and apply for your mortgage.

Once you have found the home you want you will need to show your interest by making a formal offer through the Estate Agent selling the property.

This is where the agreement in principle will come in handy as you can demonstrate you have already been provisionally accepted for the mortgage. This puts you in a strong buying position.

When a price has been agreed, you will need to inform your mortgage adviser. They will then need to submit the full mortgage application to the lender.

Once submitted, your broker will supply the lender with all requested paperwork. They will liaise between yourself and them to make sure the application goes through as quickly and smoothly as possible.

You will also need to find a solicitor and instruct them to start work on your purchase.

What happens next?

Most of the work is now done. Your mortgage adviser, solicitor and the estate agent will all communicate with each other to get everything ready for your purchase. They will also keep you updated throughout the process.

The next 2 steps will be exchange of contracts and completion.

Exchange of Contracts

Exchange of contracts is the point at which you will pay over your deposit and the purchase contract becomes legally binding. It is standard practice for exchange of contracts to occur a week prior to completion but this is flexible. Exchange of contracts dates can be agreed between you and the seller.


The most exciting part of the whole process. The completion date is the day the current owner must vacate the property and you can collect the keys and officially become a homeowner!!!

If you are first time buyers looking to secure your first mortgage get in touch as we would love to see if we can help you on your journey.

Mortgage Advisor

01752 905011

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.

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