I'm just starting to save
Understand deposits, buying costs and what you may need before you start viewing properties.
First Time Buyers Hub
Buying Your First Home? We’ll Help You Understand Every Step.
From working out what you can afford to arranging your mortgage and understanding what happens after your offer is accepted, Mortgage321 helps first-time buyers move forward with clarity.
- Free initial consultation
- 5% deposit options may be available
- Whole-of-market mortgage research
- Help from first calculation through to completion
Start here
Where are you in your first-home journey?
Tell us where you are today and we'll point you at what's most useful next. You don't need to understand every mortgage rule before buying your first home — that's our job.
I've got a deposit
Estimate what you might be able to borrow and what property price could be realistic.
I'm viewing properties
Get mortgage-ready, understand your credit position and consider an Agreement in Principle.
I've had an offer accepted
Understand what happens next and get your mortgage application moving.
Track your journey — tap your current stage
No sign-up needed — this just highlights the steps most relevant to you right now.
The full journey
Your Road to Your First Home
Ten stages, start to finish. Each one links to the tools that help with it — and to the adviser help behind them.
Work Out Your Budget
Understand your income, deposit, commitments and likely monthly mortgage payment.
Check Your Credit Position
Review your credit file before making unnecessary lender applications.
Get Mortgage Ready
Prepare your identification, income evidence, bank statements and deposit evidence.
Agreement in Principle
Obtain an indication of potential borrowing before making serious property offers.
Find the Property
Search within a realistic price range.
Make an Offer
Confirm that the proposed property price and mortgage requirement still fit your overall position.
Full Mortgage Application
Submit the mortgage application and supporting documents.
Valuation, Survey & Underwriting
The lender assesses the property and your application while your own survey can assess the condition of the property.
Mortgage Offer
The lender confirms the formal mortgage terms.
Exchange & Completion
Legal work completes and you become the owner of your first home.
This hub is your map. For what our first-time buyer service itself covers — the advice, research and hand-holding we do for you — see the First-Time Buyer service page View the service
Step one for most buyers
How Much Could I Afford?
Your income is only one part of a mortgage lender's affordability assessment. Lenders also look at how you earn it, what you already commit to, and how the household is made up.
What lenders may take into account
SalaryOvertimeBonusCommissionSelf-employed income
What can affect the assessment
Credit cardsPersonal loansCar financeChildcareDependantsMortgage term
Two lenders can assess exactly the same first-time buyer and produce very different maximum borrowing figures.
That's why an affordability range is a starting point — not an answer.
Deposits
How Much Deposit Do I Need?
Deposit size drives your loan-to-value (LTV) — the mortgage as a percentage of the property price. Here's how it looks on an example £250,000 property.
5% deposit
- Deposit
- £12,500
- Mortgage
- £237,500
- LTV
- 95%
10% deposit
- Deposit
- £25,000
- Mortgage
- £225,000
- LTV
- 90%
15% deposit
- Deposit
- £37,500
- Mortgage
- £212,500
- LTV
- 85%
These are illustrative examples only, not quotes. Mortgage availability at any LTV depends on lender criteria, your circumstances and the property.
A larger deposit can reduce the loan-to-value and may give access to a wider range of mortgage products.
Don't forget to keep money aside for the other costs involved in buying.
Small deposits
Buying with a 5% Deposit
95% loan-to-value mortgages can help first-time buyers purchase with a smaller deposit, subject to lender affordability, credit assessment and property criteria.
A 5% deposit does not guarantee mortgage acceptance.
Whichever deposit you have, lenders will still assess:
- Affordability
- Credit history
- Income
- Property type
- Mortgage term
- Other commitments
Budget beyond the deposit
What Else Should I Budget For?
The deposit is the biggest single item — but it's rarely the only one. Knowing the full picture before you commit helps you buy with your eyes open.
Deposit
The contribution you make towards the property purchase.
Legal / conveyancing fees
Your solicitor or conveyancer handles the legal transfer of ownership.
Survey
An independent survey can help you understand the condition of the property.
Mortgage valuation
Some lenders provide a free valuation; others may charge.
Mortgage product fee
Some mortgage products carry a lender product or arrangement fee.
Mortgage321 advice fee
Mortgage321's applicable advice fee will be explained and agreed before proceeding.
Property tax
SDLT, Welsh LTT or Scottish LBTT may apply depending upon the transaction and property location.
Moving costs
Removal costs, furniture, utilities and other setup costs.
Repairs / emergency fund
Keeping funds aside after completion can reduce financial pressure.
Don't use every penny of your savings for the deposit.
Before you apply
Check Your Credit File Before Making Applications
A missed payment, default or historic credit issue does not automatically mean that you cannot obtain a mortgage. It can, however, affect which lenders should be approached.
Understanding your credit position first can help avoid unnecessary mortgage applications.
Paperwork
Get Mortgage Ready
Having the right documents ready can help the mortgage process run more smoothly. Exact requirements vary by lender — your adviser confirms what's needed for your case.
Identification
Passport and/or driving licence where required.
Proof of address
Suitable evidence where requested.
Payslips
Recent payslips for employed applicants.
Bank statements
Recent personal bank statements.
P60
Where required.
Self-employed documents
SA302s, tax calculations, accounts or accountant information depending upon the lender.
Deposit evidence
Statements showing savings and source of deposit.
Gifted deposit evidence
Where family or another permitted donor is contributing.
Credit report
Particularly where there are known or historic credit issues.
Family help
Is Your Deposit Being Gifted?
A gifted deposit from parents or family is common, but lenders and solicitors will usually need evidence of the source of the money and confirmation that the funds are a genuine gift.
Typical evidence a lender or solicitor may ask for:
- Gifted deposit declaration
- Donor identification
- Bank statements
- Source-of-funds evidence
Different lenders have different rules regarding who can provide a gifted deposit and how the gift must be documented.
Before you make offers
What Is an Agreement in Principle?
An Agreement in Principle gives an indication of how much a lender may be prepared to lend based upon the information supplied.
It is not a mortgage offer.
When should I get one?
Usually before making serious property offers, particularly where an estate agent wants evidence that you have considered your mortgage position.
Does it guarantee my mortgage?
No. A full application remains subject to underwriting, credit assessment, property valuation and lender criteria.
Does it affect my credit file?
That depends upon the lender and whether the assessment uses a soft or hard credit search.
The next phase
My Offer Has Been Accepted — What Happens Next?
Several things now run in parallel: your mortgage application, the lender's valuation, your own survey and the legal work. Here's how they fit together.
Offer accepted
The seller accepts your offer and the purchase is agreed in principle.
Solicitor instructed
You appoint a conveyancer to handle the legal transfer of the property.
Mortgage application submitted
Your adviser submits the application with your documents and figures.
Mortgage valuation
The lender arranges a valuation of the property for its own security purposes.
Mortgage underwriting
The lender assesses your application, documents and affordability in detail.
Independent survey
Your own survey can assess the condition of the property — this is separate from the lender’s valuation.
Legal searches and enquiries
Your conveyancer carries out searches and raises enquiries with the seller’s solicitor.
Mortgage offer
The lender issues its formal mortgage offer confirming the terms.
Exchange of contracts
You and the seller become legally committed to the purchase, with a completion date set.
Completion
The remaining funds transfer, the keys are released and the home is yours.
Know the difference
Mortgage Valuation vs Property Survey
They sound similar but do different jobs — one protects the lender, the others inform you.
Mortgage Valuation
For the lender's benefit. It helps the lender assess whether the property provides acceptable security for the mortgage.
Level 2 Homebuyer Survey
A more detailed inspection suitable for many conventional properties.
Level 3 Building Survey
A more comprehensive survey that may be appropriate for older, unusual or heavily altered properties.
A lender's mortgage valuation is not a substitute for your own independent property survey.
Learn from others
Common First-Time Buyer Mistakes to Avoid
Every one of these is avoidable — and knowing about them in advance is half the battle.
Looking at properties before understanding borrowing
Know your realistic budget before becoming committed to a property.
Taking new credit before completion
New car finance, loans or credit commitments can affect affordability.
Missing credit payments
Keep existing credit commitments up to date throughout the mortgage process.
Using every penny as deposit
Keep funds available for fees, moving costs and unexpected expenses.
Making repeated mortgage applications
Understand the issue before repeatedly trying different lenders.
Assuming an AIP guarantees the mortgage
A full application is still subject to underwriting and valuation.
Changing employment without discussing it
A change in employment can affect lender assessment.
Not disclosing credit issues
Tell Mortgage321 about any concerns early so lender research can take them into account.
Real experience
First-Time Buyer Cases We've Helped With
A selection of first-time buyer cases from our casebook. Every published case is a real, anonymised Mortgage321 case, approved for sharing.
We publish only verified, anonymised, compliance-approved cases — and no first-time buyer cases have been approved for publication yet. In the meantime, our casebook includes real cases covering complex incomes, credit issues and specialist lending.
Read More Mortgage Case Studies Client feedback
First Homes We've Helped Make Happen
Reviews from first-time buyers we've helped — published with client consent, exactly as written.
We only publish reviews that clients have approved for publication — none are tagged as first-time buyer reviews yet. You can read what clients across all of our services say on our reviews page.
Read More Client Reviews Take it with you
Download Your First-Time Buyer Checklist
Fifteen things to have sorted before your mortgage application — a simple, free PDF. No email address needed; it downloads straight away.
- Deposit calculated
- Buying costs budgeted
- Credit file checked
- Indicative borrowing calculated
- Agreement in Principle considered
- Identification ready
- Payslips / income evidence ready
- Bank statements ready
- Deposit evidence ready
- Solicitor / conveyancer considered
- Survey budgeted
- Property tax checked
- Insurance / protection considered
- Offer accepted actions understood
- Mortgage application documents ready
Not Sure What to Do Next?
Ask Molly, our AI Mortgage Assistant
Molly answers general mortgage questions in plain English, any time of day. Pick a question to get started — or ask your own.
Can I buy with a 5% deposit? How much could I borrow? What documents will I need? What happens after my offer is accepted? Can I get a mortgage with bad credit?
Speak to an Adviser
Molly gives general mortgage information. A Mortgage321 adviser gives personalised, regulated mortgage advice — assessing your circumstances and researching real lender criteria for your case.
Discuss My First MortgageFirst-Time Buyer FAQs
Straight answers to the questions first-time buyers ask us most.
Ready to Understand What You Could Realistically Buy?
Use our calculators to understand the numbers, then let Mortgage321 assess your circumstances against real lender criteria. You don’t need to understand every mortgage rule before buying your first home — that’s what we’re here for.
FCA regulated Whole-of-market Established 2009 Free initial consultation
The guidance on this page is general information for first-time buyers in the UK and is not financial advice. Lender criteria, scheme availability and thresholds change — always confirm the current position with a qualified adviser before making decisions. Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage321 is an Appointed Representative of Ingard Financial Limited, FCA AR No. 498937.