Buying your first home is one of life's biggest milestones, but if you've never applied for a mortgage before, the process can feel overwhelming. From understanding how much you can borrow to choosing the right mortgage deal, there are several important decisions to make before you pick up the keys.
The good news? With the right preparation, buying your first home can be far less daunting than it seems. Here's everything first-time buyers should consider before taking out a mortgage.
1. Work Out What You Can Afford
Before you start booking viewings, it's important to understand your budget.
Many first-time buyers focus solely on the property's asking price, but your monthly mortgage repayments need to be affordable not just today, but if interest rates were to rise in the future. Mortgage lenders will carry out affordability checks and 'stress test' your finances to ensure you could still make repayments if rates increased.
A great place to start is by using a mortgage deposit calculator, which can help you estimate how much deposit you'll need based on where you're looking to buy.
👉 Try the MoneySavingExpert Mortgage Deposit Calculator to see how much deposit you'll need and start planning your budget.
2. Save the Biggest Deposit You Can
Although it's possible to buy a home with as little as a 5% deposit, a larger deposit can unlock lower mortgage rates and reduce your monthly repayments.
Generally speaking:
5% deposit – A great way to get onto the property ladder, although interest rates are often higher.
10–15% deposit – Opens up a wider choice of mortgage products and lenders.
20%+ deposit – Usually gives access to the most competitive mortgage rates.
Remember, your deposit affects your Loan-to-Value (LTV), which is one of the biggest factors lenders use when calculating your mortgage offer.
3. Check Your Credit Score
Before applying for a mortgage, it's worth checking your credit report.
Lenders want reassurance that you're able to manage borrowing responsibly. Paying bills on time, avoiding missed payments and being registered on the electoral roll can all improve your chances of securing a competitive mortgage.
It's also wise to avoid taking out new finance agreements or credit cards shortly before applying.
4. Get a Mortgage Agreement in Principle
A Mortgage Agreement in Principle (sometimes called an AIP or Decision in Principle) is an indication from a lender of how much they're likely to lend you.
Although it's not a formal mortgage offer, having one in place shows estate agents and sellers that you're a serious buyer. In competitive markets, this can strengthen your position when making an offer.
5. Don't Forget the Extra Costs
Your deposit isn't the only expense you'll need to budget for.
Other costs may include:
Solicitor or conveyancing fees
Survey costs
Mortgage arrangement fees (if applicable)
Buildings insurance
Removal costs
Furniture and decorating
Stamp Duty (depending on the property's value and current government thresholds)
Many first-time buyers are surprised by these additional costs, so it's sensible to keep some savings aside after paying your deposit.
6. Understand the Different Types of Mortgages
Not all mortgages are the same, and choosing the right one can make a significant difference.
The most common types include:
Fixed-rate mortgages – Your monthly repayments stay the same for an agreed period, making budgeting much easier.
Variable-rate mortgages – Your repayments can go up or down depending on changes in your lender's interest rate.
Tracker mortgages – These follow the Bank of England base rate, meaning your repayments change whenever the base rate changes.
A qualified mortgage adviser can explain the advantages and disadvantages of each option and recommend the most suitable mortgage for your circumstances.
7. Think Beyond Today's Monthly Payment
Just because a lender is prepared to lend you a certain amount doesn't necessarily mean you should borrow the maximum.
Ask yourself:
Could I still afford the repayments if interest rates increased?
Am I planning to start a family?
Will my income change in the next few years?
Do I want money available for renovations or improvements?
Buying within your means can provide greater financial flexibility and peace of mind.
8. Research the Area, Not Just the Property
Your home is about much more than four walls.
Before committing to a purchase, spend time researching the local area.
Consider:
Schools
Public transport links
Shops and supermarkets
Parks and green spaces
Cafés, pubs and restaurants
Broadband speeds
Parking
Future development plans
These factors don't just affect your day-to-day lifestyle—they can also influence your property's future value.
9. Be Ready to Move Quickly
Once you've found the right home, being organised can make all the difference.
Make sure you have:
A Mortgage Agreement in Principle
Proof of your deposit
Identification documents
A solicitor ready to instruct
A mortgage adviser or lender prepared to submit your application
Sellers are often more confident accepting offers from buyers who have everything in place.
10. Ask Plenty of Questions
There are no silly questions when buying your first home.
Some useful things to ask include:
How long has the property been on the market?
Have there been any recent renovations?
Is there a service charge or ground rent?
How long is the lease (if it's a leasehold property)?
What's included in the sale?
What's the Energy Performance Certificate (EPC) rating?
Have there been any recent price reductions?
The more informed you are, the more confident you'll feel throughout the buying process.
Final Thoughts
Buying your first home is exciting, but it's also one of the biggest financial commitments you'll ever make. Taking time to understand mortgages, budgeting carefully and seeking professional advice can make the process much less stressful and help you avoid costly mistakes.
Remember, buying a home isn't just about securing a mortgage - it's about choosing a property and a monthly payment that work for your lifestyle now and in the future.
Ready to Take the First Step?
Whether you're still saving for a deposit, wondering how much you could borrow or you're ready to start viewing properties, speaking to a mortgage adviser early can make the whole process much smoother.
Our trusted mortgage partners, The Finance Family, offer independent, whole-of-market mortgage advice tailored to your circumstances. They can help you understand your borrowing potential, compare mortgage products from a wide range of lenders and guide you through every stage of your application—from your first enquiry right through to getting the keys to your new home.
If you're ready to begin your home-buying journey, or simply have a few questions you'd like answered, we'd be happy to put you in touch.
👉 Get started today by completing The Finance Family enquiry form here:
Once you've secured your mortgage, the team at Hunters Stanstead Abbotts will be here to help you find the perfect property and support you every step of the way, from your first viewing through to moving day.
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