First-Time Buyer Mortgage Process UK: 12 Steps from Budget to Keys

Step 1: Get Clear on Your Budget and Real Costs

Your true budget needs to cover every cost between making an offer and moving in. Here is what to factor in beyond the purchase price:

• Deposit — typically 5% to 15% of the property price, depending on the lender and rate you want.
• Mortgage fees — product fees (often £500 to £1,500), valuation fees, and broker fees if you use one.
• Survey costs — a HomeBuyer Report runs £400 to £700; a full Building Survey can reach £800 to £1,500.
• Legal fees — solicitor or conveyancer charges, search fees, Land Registry fees, and bank transfer fees. Budget £1,000 to £2,000.
• Stamp Duty Land Tax (SDLT) — first-time buyer relief means 0% up to £300,000 and 5% from £300,001 to £500,000 in England and Northern Ireland. Check GOV.UK for current thresholds.
• Moving and setup costs — removals, insurance, furniture, and urgent repairs.

For a detailed look at every line item, read our full breakdown of buying costs.

Figures are approximate for a £250,000 property in England. Scotland and Wales have different land transaction taxes.

Step 2: Check Your Credit File and Gather Paperwork

Mortgage underwriting hinges on risk and affordability. Before you apply, tidy up the basics so nothing delays your application.

• Check your credit file — look for errors in addresses, old accounts, or missed payments via Experian, Equifax, or TransUnion.
• Register on the electoral roll — one of the simplest ways to boost your credit score.
• Avoid new credit — do not take out car finance or new credit cards in the months before applying.
• Reduce existing debt — lenders look at total monthly commitments when calculating affordability.

Gather these documents early:

• Three months of payslips (or two to three years of accounts if self-employed)
• Latest P60 or SA302 tax calculation
• Three months of bank statements
• Proof of deposit (savings statements, gift letter if applicable)
• Photo ID and proof of address

Step 3: Decide How You Will Fund Your Deposit

Your deposit can come from personal savings, a gifted deposit from family, or both. Lenders will ask for proof and a signed gift letter if someone else is contributing.

Using a Lifetime ISA (LISA)

A Lifetime ISA gives you a 25% government bonus on savings up to £4,000 per year. You can use it for your first home if:

• The property costs £450,000 or less
• Your LISA has been open for at least 12 months
• You buy with a mortgage
• The LISA provider pays funds directly to your solicitor

Full details are on GOV.UK. Withdrawing for any other reason triggers a 25% penalty.

5% deposit options

The government's 2025 Mortgage Guarantee Scheme supports 95% loan-to-value mortgages permanently from July 2025. A 5% deposit is realistic, but expect higher interest rates than buyers putting down 10% or more.

Step 4: Speak to a Broker and Get an Agreement in Principle

An Agreement in Principle (AIP) is a lender's conditional statement of what they might lend you, based on an initial affordability and credit check.

Getting your AIP early helps you:

• Set a realistic price range — stop wasting time on properties you cannot afford.
• Look credible to sellers — estate agents take your offer more seriously with an AIP.
• Move faster — submit a full application the moment you find the right property.

A good broker searches the whole market, including deals not available directly. Read our agreement in principle guide for more detail.

Step 5: Start Viewings and Make an Offer

With your AIP in hand, start viewing properties with confidence. Ground your offer in facts, not emotion.

• Check comparable sold prices — not just asking prices. Use Land Registry price paid data.
• Assess the condition — visible damp, old boilers, or single glazing all affect what you should offer.
• Leverage your position — as a chain-free first-time buyer with a deposit ready, you are attractive to sellers.

If accepted, confirm what is included (fixtures and fittings) and ask the estate agent to mark it as Sold Subject to Contract (SSTC). For a wider view, see our UK house buying process guide.

Step 6: Instruct a Solicitor or Conveyancer

Conveyancing is the legal work that transfers ownership. Instruct your solicitor as soon as your offer is accepted — delays here are the biggest cause of slow completions.

Common sources of delay:

• Slow identity verification and onboarding
• Waiting for the seller's solicitor to send the contract pack
• Local authority search backlogs (some councils take six to eight weeks)
• Unanswered pre-contract enquiries

Instructing early means your solicitor can complete ID checks and be ready to act when the contract pack arrives. Read our conveyancing process guide for a full breakdown.

Step 7: Submit Your Full Mortgage Application

After your offer is accepted, your broker submits the full mortgage application. The lender will scrutinise:

• Income and affordability — stress-testing whether you can afford repayments if rates rise.
• Credit history — a full hard credit search looking at payment patterns and commitments.
• Bank statements — spending habits, gambling transactions, and regular outgoings.
• The property — via a valuation (covered in the next step).

If anything changes — a new job, pay cut, or new credit agreement — tell your broker immediately. Be aware of common mortgage mistakes to avoid that trip up first-time buyers here.

Step 8: Valuation and Survey — Know the Difference

These serve completely different purposes. Confusing them is one of the costliest first-time buyer errors.

The mortgage valuation

The lender arranges a valuation to confirm the property is adequate security for the loan. It may be a desk-based check rather than a physical visit. The valuation protects the lender, not you.

Your survey

A survey is for you. It checks condition and flags problems that could cost thousands. Your options:

• RICS HomeBuyer Report — suitable for standard properties in reasonable condition (£400 to £700).
• RICS Building Survey — the most detailed option for older or unusual properties (£800 to £1,500).

If the survey flags significant issues, you can renegotiate the price, ask the seller to fix problems, or walk away. Discuss findings with your broker and solicitor first.

Step 9: Conveyancing Searches and Enquiries

Your solicitor runs searches and raises enquiries with the seller's side. This is where timelines often drift.

Standard searches include:

• Local authority search — planning applications, building control, road schemes.
• Water and drainage search — confirms mains water and sewerage connections.
• Environmental search — contaminated land, flood risk, and subsidence.
• Title check — verifies the seller owns the property and can sell it.

Your solicitor also raises pre-contract enquiries about boundaries, disputes, guarantees, and alterations. Your part: respond quickly, keep your broker updated, and chase politely if things go quiet.

Step 10: Mortgage Offer Issued — What to Check

When the lender is satisfied, they issue a formal mortgage offer to you and your solicitor. Check the following carefully:

• Interest rate and product type — fixed, tracker, or discount. Check it matches what your broker arranged.
• Product fee — confirm the amount and whether it was added to the loan or paid upfront.
• Special conditions — some offers require repairs or additional documents before drawdown.
• Offer expiry date — typically three to six months. Flag a tight timeline with your solicitor early.

Step 11: Exchange Contracts

Exchange is when the deal becomes legally binding. After exchange, pulling out typically means losing your deposit and facing a claim for the seller's losses.

Before exchange, confirm you are satisfied with:

• Survey outcomes — issues should be resolved or reflected in a renegotiated price.
• Search results — no unexpected planning applications, flood zones, or rights of way.
• Buildings insurance — you are responsible from exchange. Your solicitor will confirm when cover must start.
• Completion date — typically 7 to 28 days after exchange.

On exchange, you pay the exchange deposit (usually 10% of the purchase price). Your solicitor holds these funds until completion.

Step 12: Completion Day and Getting the Keys

Completion day is the final step. Here is what happens:

1. Your lender releases funds — sent to your solicitor, usually early in the morning.
2. Your solicitor transfers the money — the full purchase price goes to the seller's solicitor.
3. Ownership transfers — once receipt is confirmed, the property is legally yours.
4. The estate agent releases the keys — collect them from the agent's office, usually by early afternoon.

After completion, your solicitor pays any stamp duty within 14 days and registers the purchase with the Land Registry. For stamp duty thresholds, try our stamp duty calculator.

Typical First-Time Buyer Timeline

This timeline covers a straightforward chain-free purchase.

Chain-free purchases can complete in as little as eight weeks. Complex chains or slow searches can push beyond 20 weeks. Use our mortgage calculator to plan your monthly repayments.