FIRST-TIME BUYER MORTGAGES UK: COMPLETE 2025 GUIDE

Your Step-by-Step Home Buying Journey

Buying your first home can be an exciting milestone, but it may also feel daunting at first.

⚠ Important: Your home may be repossessed if you do not keep up repayments on your mortgage.

In this guide, we outline the main steps in the process so you may feel more confident about what to expect. While following these steps can help you prepare, every homebuying journey is different and subject to individual circumstances.

Find a Mortgage Broker

A mortgage broker can help you decide what kind of first-time buyer mortgage may suit you and give you an idea of how much you could potentially borrow based on your financial situation.

You can arrange an appointment or call with a broker, or you may prefer to use an online service that can arrange your first-time buyer mortgage digitally. This may make the process quicker and reduce paperwork.

Choose a broker you feel comfortable with and ensure they can guide you through the process, liaise with solicitors where needed, and keep your case on track. Availability outside standard hours may also be helpful.

Important: Ensure your broker is authorised and regulated by the Financial Conduct Authority (FCA). You can verify this using the FCA Register. Regulated brokers must meet suitability and fair treatment standards under FCA rules.

Choose Your Mortgage

Choosing the right mortgage is an important decision. If your application is rejected, it can negatively affect your credit score. A mortgage broker can help identify products for which you meet the lender’s criteria, reducing the risk of rejection.

They can also compare total costs, as products with low interest rates may include additional fees (e.g., survey, booking, or product fees) that increase the overall cost.

Secure a Decision in Principle

Once you’ve found a potential deal, your broker can help you obtain a Decision in Principle (DIP)—an indication from the lender that they are willing to lend, based on the information provided. This can strengthen your position when making an offer on a property.

Find a Property

Knowing your borrowing capacity allows you to start viewing properties. Register with local estate agents, view multiple options, and take notes to help with comparisons.

Put in an Offer

When you’ve found the right property, you can make an offer. Clarify what’s included in the sale (e.g., fixtures, fittings, appliances, garden structures). Once accepted, you can proceed with your mortgage application, subject to valuation and legal checks.

Complete Your Mortgage Application

At this stage, you’ll verify income, identity, and other details. This can often be completed online with the support of your broker. The lender will also arrange a valuation to ensure the property meets lending criteria.

If approved, the lender will issue a mortgage offer—read the terms and conditions carefully.

Choose a Conveyancer or Solicitor

Select a legal professional to handle contracts, searches, and title checks. Compare quotes, check reviews, and choose based on reputation and experience, not just cost.

Instruct a Survey

Consider commissioning your own homebuyer’s report or full survey, especially for older or unusual properties.

Exchange Contracts

Once all legal work is complete, contracts are exchanged, and you pay your deposit. At this point, you are legally committed to the purchase.

Completion

On the agreed date, funds are transferred to the seller’s solicitor and you receive the keys.

Further Information

What is a First-Time Buyer?

In general, a first-time buyer is someone who has never owned property or land, nor inherited or been gifted property. First-time buyers may benefit from stamp duty relief and certain government schemes, subject to eligibility.

What is a Mortgage?

A mortgage is a loan secured against a property. You repay it with interest over an agreed term. If repayments are not maintained, the lender may repossess the property.

Main Types of Mortgage

• Repayment Mortgage – You pay part of the loan plus interest each month, and own the property outright at the end of the term.
• Interest-Only Mortgage – You pay only the interest each month and must repay the full loan at the end of the term. These are subject to stricter affordability checks under FCA rules and are not suitable for all borrowers.

Deposits

Deposit requirements vary. For repayment mortgages, you may need 5–15% of the property value; for interest-only, usually around 25%. A larger deposit often gives access to more competitive rates.

Interest Rates

Mortgages can have fixed rates (unchanged for a set period) or variable rates (can change in line with market rates). Your broker can explain options and implications.

Open Banking

A secure system allowing you to share financial data with authorised providers, potentially speeding up applications and helping match you to suitable products.

Insurance

• Buildings Insurance – Required by lenders to cover the property structure.
• Contents Insurance – Protects belongings.
• Income Protection – Covers repayments if you cannot work due to illness or injury.
• Life Insurance – Protects dependants if you pass away.

Fees to Budget For

• Stamp Duty (if applicable above thresholds).
• Valuation fees.
• Conveyancing or solicitor fees.
• Broker fees (some brokers are paid by lenders).

If you want to know more about your first-time buyer mortgage options, you can contact an FCA-authorised mortgage adviser.

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage.

This guide is for general information only and does not constitute financial advice. Always seek regulated advice tailored to your circumstances. Product availability and criteria may change. Accurate as of August 2025.