Save for a deposit
Start early and save as much as you can. You'll typically need at least 5-10% of the price of the property you want to buy.
The more deposit you put down, the less you'll need to borrow.
Often the lower the loan to value, the more mortgage options and lower interest rates you might be offered.
Get to know your budget
First find out how much you could borrow. Look at your total income compared to your expenses like your bills, day to day spending and other debts to get an idea of how much money you'd have left each month to pay for a mortgage.
When looking at properties and areas to buy, it's handy to know what size of mortgage you may be able to get.
In addition, it's worth noting that lenders sometimes have different rules around lending for new build homes.
There are other options you might want to consider like shared ownership – which could reduce the size of the deposit and mortgage you need.
Get an idea of how much you could borrow with our mortgage calculator.
At this stage it might be worthwhile understanding all the ‘other’ costs involved in buying a home – the fees and charges, stamp duty and moving costs.
Check your credit score
Before applying for a mortgage, it's worth checking your credit score.
Whilst it's not the only factor lenders consider when deciding if you can borrow from them, it'll give you some idea if there might be any issues.
Get a decision in principle (DIP)
This is sometimes called mortgage in principle or application in principle. The great thing about a DIP, is that when you find a property you like you can make an offer knowing that you have a good chance of getting the mortgage you need. It gives you and the person you're buying the property from confidence that you’re serious.
Read more about getting a decision in principle.
Before applying for a DIP it’s best to check any eligibility criteria and rules a lender might have that would automatically mean they couldn’t lend to you.
Find the home you want to buy
If you haven't already, now's the time to start house hunting. Think about:
- How many bedrooms you need
- Your ideal location
- Local transport links, schools or other things that might be important to you.
Once you've found ‘the one’ you can make an offer to the seller.
Compare mortgage deals
Time to explore what mortgage offers are out there that could suit you. You can search our first time buyer deals to see what we have available, and what your monthly repayments might be.
Complete a full mortgage application
You'll need to provide some information to help with the application. You might need your pay slips and the history of addresses you’ve lived at.
This is when lenders will also run a credit check - it’s a good idea to check your credit score and make sure there are no red flags.
Find and appoint a solicitor
Next you’ll need to choose a solicitor to deal with the legal work involved in buying a property.
They sort the transfer of ownership, legal paperwork and check for any environmental or planning permission issues that could cause you problems in the future. This process is called conveyancing.
Get the property surveyed
Lenders will carry out a valuation of the property to confirm its value.
There are typically three types of survey available - a standard valuation, a homebuyers report and a full building survey.
More detailed surveys, like a homebuyers report or building survey will check the condition of the property and make you aware of any potential problems.
Sign the contract and exchange
Your mortgage offer has been approved! Now it’s time for you and the seller to sign contracts and pay your deposit. This is the stage where you’re legally bound to buy your new home.
There might be some time between exchanging and the final stage of completion. This is common as you might be waiting for the seller to move out, or if you've bought a new build, it might take some time to be finished.
Don’t worry, your mortgage offer will be valid for a certain period to cover this. This is typically around three to six months, but it varies from lender to lender - so make sure you check how long it's valid for.
Completion and move in day
Finally, everything's in place, and you've got a completion date. Your solicitor will transfer the rest of the money to buy the property to the seller's solicitor.
Once they confirm the money has been transferred, you can get the keys to your new home and move in. Congratulations!