Welcome.
Buying your first home is one of the biggest financial decisions you will make, and it is often made in unfamiliar language, under time pressure.
This guide sets out how the process works from the lender’s side of the table: what they look at, how much they are likely to lend, and the costs you need to plan for beyond the deposit.
Every case is different. Some buyers have a straightforward salary and a healthy deposit; others have bonuses, a new job, help from family or income from more than one source. Each of those can be presented in a way lenders understand, and that is where advice makes the biggest difference.
When you are ready, speak to us. Your first consultation is free, and we will tell you plainly what is possible and what it will cost.
The price up to which first-time buyers in England and Northern Ireland pay no Stamp Duty, on homes costing up to £500,000.
01Are you ready to buy?
Lenders are not only asking whether you can afford the payments today. They are building a picture of how reliably you manage money, and whether that will hold up if rates rise.
Your credit file
Check your report with all three main credit reference agencies: Experian, Equifax and TransUnion. Lenders may use any of them, and errors on one may not appear on the others.
- Register on the electoral roll at your current address.
- Pay every bill on time, including phone contracts and buy-now-pay-later plans.
- Keep credit card balances well below their limits.
- Avoid new credit applications in the six months before you apply.
- Close old accounts you no longer use only if they carry no history you need.
Your bank statements
Most lenders ask for three months of statements. Underwriters read them. Regular gambling transactions, frequent overdraft use or large unexplained transfers all prompt questions, so tidy your spending before you apply.
Your employment
Many lenders like to see at least three to six months in your current role, or that you are past any probation period. Some will lend from day one with a signed contract, particularly for professionals moving roles within the same industry.
If you are self-employed, most lenders want two years of accounts or tax calculations, though some will consider one.
Adviser’s note
Bonuses, overtime, commission and allowances are treated very differently from one lender to the next. Some use 100% of a regular bonus, others 50%, others none. Choosing the right lender can change your borrowing by tens of thousands of pounds.
Your timeline
Start talking to an adviser before you start viewing. An agreement in principle shows estate agents you are a serious buyer and tells you the price range to search in.
02How much can you borrow?
Most lenders lend up to around 4.5 times your income. Some go to 5 or 5.5 times for higher earners or certain professions, always subject to an affordability assessment.
What lenders assess
- Income: basic salary, plus some or all of any bonus, overtime or allowances.
- Commitments: loans, car finance, credit cards, student loan repayments, childcare and maintenance.
- Living costs: based on your household size and, often, your actual spending.
- Stress test: whether you could still afford the payments if rates rose.
- Credit profile: your history and how you use credit today.
Why your deposit matters
Your loan-to-value (LTV) is the mortgage as a percentage of the property’s price. Rates are priced in LTV bands, so moving down a band can lower your rate.
| Deposit | LTV | What it usually means |
|---|---|---|
| 5% | 95% | Fewer lenders, higher rates, stricter affordability |
| 10% | 90% | Much wider choice of lenders |
| 15% | 85% | Rates usually improve again |
| 25% | 75% | Access to most mainstream products |
| 40% | 60% | Typically the lowest rates available |
Bands are indicative; lenders set their own criteria and pricing.
Worked example
On a £400,000 flat, a £40,000 deposit means a £360,000 mortgage at 90% LTV. Saving a further £20,000 takes you to 85% LTV, which often unlocks a lower rate across the whole loan.
03Your deposit.
You will usually need at least 5% of the purchase price. Lenders will want to see where every pound has come from.
Your own savings
Savings built up over time in your own name are the simplest source. Expect to show statements tracing larger balances back to their source.
A gift from family
Most lenders accept a gifted deposit from a close family member. The person giving it will normally sign a gift letter confirming it is not a loan, they will have no interest in the property, and they will not live there. Their identity and the source of the money will be checked too.
The Lifetime ISA
If you are 18 to 39 you can open a Lifetime ISA and save up to £4,000 a tax year, with a 25% government bonus of up to £1,000 a year. It can be used towards a first home costing up to £450,000.
Withdrawing for any other reason, or for a home above the cap, triggers a 25% charge on the amount withdrawn, which means you can get back less than you paid in. The Government has announced plans to replace the Lifetime ISA with a new first-home ISA; existing accounts are expected to continue, so check the latest position before opening one.
Family-assisted options
If income is the limiting factor rather than the deposit, there are structures that let family help without simply gifting money:
- Joint borrower, sole proprietor: a parent joins the mortgage to support affordability but is not named on the deeds.
- Family deposit or savings-backed mortgages: a relative places savings with the lender as security for a set period.
- Shared ownership: you buy a share of a home and pay rent on the rest, with the option to buy more later.
Adviser’s note
Each option has tax, legal and inheritance implications for the family member helping. We will explain how lenders treat them and recommend everyone involved takes independent legal advice.
Lifetime ISA government bonus on contributions of up to £4,000 a tax year, for first homes up to £450,000.
04The real cost of buying.
The deposit is the largest cost, but it is not the only one. Budget for these before you make an offer.
Stamp Duty for first-time buyers
In England and Northern Ireland, first-time buyers pay no Stamp Duty Land Tax on the first £300,000 and 5% on the portion from £300,001 to £500,000. Above £500,000 the relief is lost and standard rates apply to the whole price.
| Purchase price | Stamp Duty |
|---|---|
| £250,000 | £0 |
| £300,000 | £0 |
| £400,000 | £5,000 |
| £500,000 | £10,000 |
| £550,000 (no relief) | £17,500 |
England & Northern Ireland, main residence, rates as at October 2026. Scotland (LBTT) and Wales (LTT) have their own rules. To qualify, every buyer must be a first-time buyer.
Other costs to plan for
| Cost | What to know |
|---|---|
| Legal fees | Ask for a fixed fee that includes searches and Land Registry fees. Leasehold purchases usually cost more. |
| Survey | The lender’s valuation is not a survey. A RICS Home Survey Level 2 or 3 tells you about the condition of the property. |
| Lender fees | Product fees range from nothing to £1,000 or more. A lower rate with a fee is not always cheaper. |
| Advice fee | Our typical fee is £495; the exact fee is confirmed after your first consultation. |
| Moving in | Removals, furniture, and buildings insurance from exchange of contracts. |
Leasehold flats
Check the lease length, ground rent and service charge early. Many lenders want plenty of years left on the lease, and shorter leases can be costly to extend.
05The journey, step by step.
From offer accepted to completion often takes around 8 to 12 weeks, although chains, leasehold enquiries and new-build timescales can make it longer.
Initial consultation
We review your income, deposit and plans, and tell you what you can realistically borrow and what it will cost.
Free · around 20 minutesAgreement in principle
A lender’s initial indication of how much it will lend, usually with a credit search. Agents will ask for one.
Usually same day to a few daysFind a home and offer
Once your offer is accepted, instruct a solicitor and book any survey.
Your timescaleFull application
We package your documents and submit your application to the lender best suited to your case.
A few days to prepareValuation and underwriting
The lender values the property and an underwriter reviews your file, sometimes with follow-up questions.
Often one to three weeksMortgage offer
The formal offer. Most are valid for around three to six months, depending on the lender.
We check every conditionExchange of contracts
You pay your deposit, a completion date is fixed and the purchase becomes legally binding.
The point of commitmentCompletion
The lender releases the funds, the seller is paid and you collect your keys.
Moving day06Choosing your mortgage.
The lowest headline rate is not always the best deal. We compare the total cost over the deal period, including fees, against how much flexibility you need.
Fixed or tracker
| Fixed rate | Tracker | |
|---|---|---|
| Payments | The same every month for the deal | Move with Bank of England base rate |
| Suits | Budgeting certainty | Flexibility, or if you expect rates to fall |
| Leaving early | Early repayment charges usually apply | Often lower or no charges |
Two, three or five years?
A shorter fix gives you a chance to move to a lower LTV band sooner as you pay down the loan and, hopefully, the property rises in value. A longer fix gives certainty for longer. Think about how long you expect to stay in the property.
The term
Many first-time buyers choose 30 to 35 years to keep payments manageable. A longer term means lower monthly payments but more interest overall; most deals let you overpay to shorten it.
Small print that matters
- Early repayment charges: what it costs to leave during the deal.
- Overpayments: many lenders allow up to 10% a year without a charge.
- Portability: whether you can take the deal with you if you move.
- Fees: whether to pay upfront or add them to the loan, where you will pay interest on them.
A common annual overpayment allowance without an early repayment charge. Allowances vary by lender.
When your deal ends
At the end of a fixed or tracker period your lender moves you onto its standard variable rate unless you arrange a new deal. We will contact you around six months before, so you never pay the higher rate.
07Protecting what you have built.
Your mortgage is likely to be your largest monthly commitment. Protection makes sure it is still paid if life takes an unexpected turn.
| Cover | What it does |
|---|---|
| Life insurance | Pays a lump sum to clear or reduce the mortgage if you die during the term. |
| Critical illness | Pays out on diagnosis of a specified serious illness. |
| Income protection | Replaces part of your income if you cannot work through illness or injury. Often the most overlooked. |
| Buildings insurance | Required by your lender, usually from exchange of contracts on a house. |
Protection policies have no cash-in value at any time and will cease at the end of the term. If you stop paying premiums, your cover will end.
Eight things to avoid
- Applying for new credit or finance while your mortgage is in progress.
- Changing jobs between application and completion without telling us.
- Moving large sums between accounts without a paper trail.
- Missing a single payment on any account, however small.
- Assuming the lender’s valuation tells you about the property’s condition.
- Leaving buildings insurance until completion day.
- Forgetting the costs on top of the deposit.
- Choosing a mortgage on the headline rate alone.
08A first purchase, start to finish.
A couple buying a £400,000 flat in London
Combined income of £95,000, £30,000 saved and a £15,000 gift from a parent. One partner receives a discretionary bonus.
- Purchase
- £400,000 leasehold flat
- Deposit
- £45,000, including a £15,000 gift
- Mortgage
- £355,000 over 35 years (90% LTV band)
- Stamp Duty
- £5,000 with first-time buyer relief
- Challenge
- Some lenders ignored the bonus, capping borrowing below the price
- Outcome
- A lender that averages bonus history, a five-year fix and completion in ten weeks
This example is illustrative and does not describe a real client. Figures are for explanation only.
09Checklist and glossary.
Documents to have ready
- Photo ID: passport or driving licence
- Proof of address dated within three months
- Last three months’ payslips
- Latest P60
- Last three months’ bank statements, all accounts
- Statements showing your deposit building up
- Gift letter and donor ID, if applicable
- Employment contract, if new to your role
- Two years’ accounts or SA302s, if self-employed
- Details of any loans, credit cards and finance
- Your solicitor’s details, once instructed
Glossary
- AIP
- Agreement in principle: a lender’s initial indication of how much it may lend.
- LTV
- Loan to value: the mortgage as a percentage of the property’s value.
- ERC
- Early repayment charge for repaying or leaving a deal early.
- SVR
- Standard variable rate: the lender’s rate after a deal ends.
- Conveyancing
- The legal work of transferring ownership.
- Exchange
- When contracts are swapped and the purchase becomes binding.
- Completion
- When the money moves and you get the keys.
- Leasehold
- Owning a property for a fixed number of years under a lease.
- Freehold
- Owning the property and the land it stands on outright.
- SDLT
- Stamp Duty Land Tax, paid on purchases in England and Northern Ireland.
Related: First Time Buyers · All guides · Calculators