The Full First-Time Buyer Mortgage Journey in the UK (Step by Step)

Clear, simple guidance explaining what happens at each stage — without jargon.

By Leah Creamer – Making Mortgages Simple

One minute you’re scrolling Rightmove.
The next, people are asking about LTVs, AIPs, solicitors and surveys — and you’rewondering if you’ve already messed something up.

Buying your first home is exciting — but it can also feel overwhelming.
There are new terms, unfamiliar stages, and plenty of moments where it’s not always clearwhat’s supposed to happen next.

This guide walks you through the full first-time buyer mortgage journey in the UK, step bystep, explaining what happens at each stage and what lenders are usually looking for.

This information is provided as general guidance only, not personal advice. Every lenderassesses applications differently, and individual circumstances can affect how the processworks.

Step 1: Understanding what you can borrow

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This stage is about understanding possibilities — not making commitments.Before looking at properties, most first-time buyers want to know one thing:“How much can I actually borrow?”

Mortgage lenders usually assess affordability based on:

• Your income (and how it is paid)
• Regular commitments (loans, credit cards, childcare, etc.)• Credit history
• Household spending
• The length of the mortgage term

Online mortgage calculators can give a rough starting point, but they do not consider yourfull financial picture. They often don’t factor in real household spending or credit history,which is why figures can change later in the process.

At this stage, nothing is guaranteed. It is about understanding what may be possible, not what is confirmed

This gives you a realistic guide on what you may be able to afford — and allows you to moveon to the next step: your deposit.

Step 2: Saving for a deposit and costs

Most first-time buyers in the UK need a deposit.

For many lenders, the minimum deposit is 5% of the property price, although the amountrequired depends on the lender and mortgage product chosen.

Generally, the larger your deposit, the better the interest rates available. This is becauselenders view higher deposits as lower risk.

This risk is measured using something called Loan to Value (LTV).

Loan to Value (LTV) is the percentage of the property price you are borrowing.

For example:

• 95% LTV = 5% deposit• 90% LTV = 10% deposit

Higher LTV = higher risk for the lender = usually higher interest rates.There are also alternative schemes available, such as:

• £5,000 deposit mortgages
• 100% mortgages (where no deposit is required)

These can be helpful options but usually come with:

• Higher interest rates
• Stricter criteria
• A requirement for good credit history

Deposit sources

Your deposit does not have to come from your own savings.

It may be:

• Gifted by family
• Gifted by a friend (depending on lender criteria)
• Gifted equity (for example, buying a property from a family member or landlord belowmarket value)

Each lender has different rules on acceptable deposit sources, so this is always checked inadvance.

Additional costs to budget for

Alongside your deposit, buyers should also plan for:

• Solicitor fees
• Land Transaction Tax (Wales) or Stamp Duty (England), where applicable
• Mortgage protection costs (such as life insurance, critical illness cover, income protection,and family income benefit – everyone’s needs will be different)
• Valuation or survey costs
• Moving costs
• Furnishing expenses
• Mortgage product fees (if applicable)

Being aware of these costs early helps avoid pressure later on.

Once your deposit is in place, you’re almost ready to start viewing properties — but there isone very important step to complete first.

Step 3: Agreement in Principle (AIP)

An Agreement in Principle (also known as a Decision in Principle) is often the first formalstep with a lender.

Your mortgage adviser should conduct an appointment with you to understand yourcircumstances, your goals, and what you are looking to achieve. During this meeting, theyshould explain your mortgage options, confirm your realistic budget, and help you understandwhat is affordable before you begin viewing properties.

An AIP confirms that:

• Based on the information provided
• And usually a soft credit check
• The lender would consider lending up to a certain amount

It’s important to understand

• An AIP is not a mortgage offer
• It is not guaranteed
• It can be withdrawn if circumstances change or information differs later

However, it is a vital step because most estate agents require one before accepting an offer.

Helpful tip:

If your AIP shows a higher borrowing amount than the property you are offering on, ask youradviser to reduce the figure shown.

Estate agents work for the seller. If they know you can borrow more, it may weaken yournegotiating position. Your adviser can always increase the amount later if needed.

Once your AIP is in place, you’re ready to make an offer.

Step 4: Finding a property and making an offer

When you find a property you’d like to buy, you make an offer through the estate agent.If the offer is accepted:

• Nothing is legally binding yet
• Timescales can vary
• Further checks are still to come

At this stage, you should provide your broker with:

• Full property address
• Purchase price
• Estate agent details
• Any updated documents needed for your mortgage application

This allows your broker to confirm the property is suitable for mortgage purposes and sourcethe most appropriate mortgage deal for you, based on your circumstances and preferencesdiscussed earlier.

The estate agent will also ask which solicitor you plan to use so they can issue theMemorandum of Sale, confirming the agreed price and parties involved.

Many brokers have relationships with solicitors who offer discounted rates. Using yourbroker’s recommended solicitor can also make communication smoother if issues arise later.

Step 5: Submitting the full mortgage application

Once your offer is accepted, your mortgage adviser should arrange a further appointmentwith you.

During this meeting, they will go through their mortgage recommendation in detail, ensureyou fully understand the product and costs, and confirm you are happy to proceed.

Once agreed, your adviser will submit the full mortgage application to the chosen lender.The lender will then complete detailed checks, including:

• Full credit assessment
• Income verification
• Bank statement review
• Property assessment

It is very common for lenders to ask follow-up questions or request additional documents.This is completely normal — almost every mortgage application receives questions from thelender.

Submitting the application does not mean instant approval — underwriting is where lendersask questions.

Step 6: Valuation and surveys

The lender will usually carry out a valuation on the property to confirm it is suitable securityfor the mortgage.

This valuation is for the lender, not the buyer.

Buyers often choose to arrange their own independent survey for peace of mind. A surveycan highlight issues not visible during viewings and may provide an opportunity torenegotiate the purchase price if problems are identified.

Step 7: Mortgage offer

If the lender is satisfied with:

• The application
• The documentation
• The property valuation

A formal mortgage offer will be issued.
Mortgage offers usually last around six months and are not transferable between properties.

It’s important to keep your finances stable at this stage. Some lenders carry out a final creditcheck just before releasing funds.

Taking out new finance — such as furniture or car agreements — can affect affordability andmay put the mortgage at risk.

Once your mortgage offer is received, your mortgage adviser should explain it to youpersonally.

I do this via a recorded video walkthrough so you can watch it in your own time — becausemortgage offers are long, technical documents and no one should feel rushed or confusedreading them.

Step 8: Conveyancing and legal work

Once your mortgage offer is issued, the legal work continues.

Many advisers recommend waiting until your mortgage offer is in place before committing tosolicitor costs, unless you are under time pressure.

Your solicitor will handle:

• Property searches
• Contract reviews
• Liaising with the seller’s solicitor
• Preparing for exchange and completion

This stage often takes longer than expected.

Typical timelines are 12–16 weeks, but it can take longer — especially if there is a propertychain, where multiple buyers and sellers depend on each other.

Step 9: Exchange of contracts

Once all legal checks are complete, contracts are exchanged.

At this point:

• The purchase becomes legally binding
• A completion date is agreed
• You are committed to buying the property

Buildings insurance must be in place from exchange of contracts. Your broker can arrangethis and provide all necessary documentation.

After exchange, withdrawing from the purchase can result in financial penalties.

Step 10: Completion and getting the keys

Completion is the day ownership officially transfers.
Sometimes exchange and completion occur on the same day, although this is less common.

Funds are sent, the seller moves out, and the buyer receives the keys — usually via the estateagent.

Keys are typically released in the afternoon rather than the morning.

At this stage, your mortgage adviser should also ensure any protection policies are placed onrisk if they haven’t already been started.

Most of my clients choose to put protection in place earlier, ensuring cover is activethroughout the buying process. This can also help avoid increased premiums, as even anadditional GP or hospital visit can sometimes result in higher monthly costs.

Final thoughts for first-time buyers

The first-time buyer journey has many moving parts and rarely follows a perfectly straightline.

Delays, questions, and uncertainty are completely normal.

Understanding what each stage means — and what it doesn’t — can make the entire processfeel far more manageable.

After you’ve bought your home

Your mortgage adviser should:

• Review your protection policies annually
• Check your buildings and contents insurance each year
• Contact you between 3–6 months before your initial rate ends
• Help you secure a new deal so you don’t revert to the lender’s standard variable rate

This guide is provided for general information only. Mortgage eligibility and suitabilitydepend on individual circumstances, and lender criteria can change at any time.