First-Time Buyer Mortgage Checklist: Buying a first home involves more than finding a property and comparing mortgage rates.
A lender must be satisfied that the deposit, income, credit history, monthly commitments and property all meet its rules. The buyer must also decide whether the mortgage remains affordable after legal fees, moving costs and household bills are included.
This checklist explains the practical checks to complete before submitting a first-time buyer mortgage application.
At a glance
Before applying for a first-time buyer mortgage:
- confirm your deposit and its source;
- calculate your loan-to-value ratio;
- review income, debts and regular spending;
- check your credit reports for errors;
- budget for legal, survey and moving costs;
- prepare your supporting documents;
- obtain an agreement in principle where suitable;
- avoid taking new credit before completion.
A mortgage should not only make a purchase possible. It should remain manageable after the keys are collected.
What Counts as a First-Time Buyer?
A first-time buyer is generally someone who has never owned a residential property in the UK or overseas.
Ownership can include a property that was inherited or received as a gift. When two people buy together, both may need to meet the first-time buyer definition for certain tax reliefs or schemes.
Lender definitions can also vary. Check your position before relying on a first-time buyer product or tax saving.
Our First-Time Buyer mortgage page explains the main mortgage options in greater detail.
1. Confirm Your Deposit
Many first-time buyer mortgages are available with a deposit starting from 5% of the purchase price. However, availability depends on lender criteria, affordability and the property.
A larger deposit reduces the loan-to-value ratio, known as LTV.
For example:
- Property price: £250,000
- Deposit: £25,000
- Mortgage required: £225,000
- Loan-to-value: 90%
A lower LTV may provide access to more products or different rates. It does not remove the need for income and credit checks.
The lender will also check where the deposit came from. Savings, a Lifetime ISA and a family gift can be treated differently.
A gifted deposit normally requires written confirmation that the money is a genuine gift and does not need to be repaid.
2. Check Mortgage Affordability
Lenders do not assess borrowing from salary alone. They consider how much income remains after financial commitments and normal household spending.
The assessment may include:
- basic salary;
- overtime, commission or bonuses;
- self-employed income;
- personal loans and car finance;
- credit card balances;
- student loan deductions;
- childcare and maintenance payments;
- dependants;
- regular household spending.
Different lenders use different calculations. Therefore, the same income and deposit can produce different borrowing outcomes.
Use the Mortgage Affordability Calculator for an initial estimate. The result is a guide rather than a mortgage offer.
3. Review Your Credit File
A credit report helps a lender understand how you have managed borrowing and payments.
Check reports from the main credit reference agencies before applying. Look for:
- incorrect addresses;
- accounts that do not belong to you;
- missed or late payments;
- unused credit accounts;
- high credit utilisation;
- financial links with former partners;
- electoral register information.
Do not assume that a high score guarantees approval. Lenders use their own credit policies and consider the complete application.
Read our Credit File and Mortgages guide before making an application.
4. Calculate the Full Cost of Buying
The deposit is only one part of the required budget.
Other costs may include:
- solicitor or conveyancer fees;
- property searches;
- mortgage valuation fees;
- an independent property survey;
- mortgage product fees;
- broker or advice fees;
- Stamp Duty or another property transaction tax;
- removals;
- buildings insurance;
- immediate repairs or furniture.
Keep an emergency reserve where possible. Using every available pound for the deposit can leave little protection against repairs or unexpected costs.
For qualifying purchases in England and Northern Ireland, first-time buyers currently pay no Stamp Duty Land Tax on the first £300,000. A 5% rate applies to the portion between £300,001 and £500,000. Relief is unavailable when the purchase price exceeds £500,000.
Rules differ in Scotland and Wales. Check the current GOV.UK Stamp Duty guidance and use our Stamp Duty Calculator before setting your budget.
5. Prepare Your Mortgage Documents
Providing complete evidence can reduce avoidable delays.
An employed applicant may need:
- photographic identification;
- proof of address;
- recent payslips;
- a recent P60;
- personal bank statements;
- evidence of the deposit;
- details of outstanding credit;
- a gifted deposit letter, where relevant.
Self-employed applicants may also need accounts, tax calculations, tax-year overviews and business bank statements.
The documents must support the information entered on the application. Unexplained differences between stated income, bank transactions and credit commitments may lead to further questions.
Our Getting Mortgage Ready guide covers the main preparation stages.
6. Understand the Agreement in Principle
An agreement in principle provides an estimate of how much a lender may be willing to lend.
It can help buyers:
- set a realistic property budget;
- show an estate agent that initial checks have been completed;
- identify possible credit or affordability issues;
- prepare for a full application.
It is not a guaranteed mortgage offer. Approval still depends on full underwriting, supporting evidence and the lender’s assessment of the property.
Some lenders use a soft credit search at this stage. Others may use a hard search. Check this before proceeding.
7. Check the Property Against Lender Rules
A buyer can meet the income and credit requirements while the property fails the lender’s assessment.
Extra checks may apply to:
- flats above commercial premises;
- short leases;
- unusual construction;
- new-build homes;
- properties with structural defects;
- high-rise buildings;
- properties with restrictive planning conditions.
A lender’s valuation is primarily for the lender. It is not the same as an independent survey of the property’s condition.
Consider arranging an appropriate survey before becoming legally committed to the purchase.
8. Avoid Financial Changes Before Completion
The lender may carry out further checks before releasing the mortgage funds.
During the application, avoid:
- taking a new loan;
- financing a vehicle;
- increasing credit card balances;
- missing payments;
- changing employment without discussing it;
- moving deposit funds without keeping records;
- making unexplained large bank transactions.
A material change can affect affordability or require the lender to assess the case again.
First-Time Buyer Mortgage Process
The usual stages are:
- Review your deposit, credit file and monthly budget.
- Prepare income and deposit evidence.
- Discuss suitable mortgage options.
- Obtain an agreement in principle where appropriate.
- Find a property and agree a purchase price.
- Submit the full mortgage application.
- Complete the lender’s valuation and underwriting.
- Arrange legal searches and an independent survey.
- Receive the formal mortgage offer.
- Exchange contracts and complete the purchase.
The exact order and timing can differ between England, Wales, Scotland and Northern Ireland.
For another view of the buying stages, read the Connect Network’s First-Time Buyer Guide.
Preparing for the Mortgage, Not Only the Purchase
The first mortgage decision sets the financial structure around a new home.
A lower rate can be important. However, the deposit, fees, mortgage term, monthly payment and future flexibility must work together.
Good preparation does not guarantee approval. It does make the application easier to understand, document and assess.
Frequently Asked Questions
Can a first-time buyer get a mortgage with a 5% deposit?
Some lenders offer mortgages at 95% LTV. Approval still depends on affordability, credit history, property type and the lender’s criteria.
Does an agreement in principle guarantee a mortgage?
No. It is an initial indication rather than a formal offer. The lender must still assess the documents, property and complete application.
Should I clear debt before applying?
Reducing debt may improve affordability, but using deposit savings to repay borrowing can also reduce the available deposit. Review both effects before deciding.
When should I speak to a mortgage adviser?
Consider seeking advice before viewing properties or submitting applications. Early checks can identify suitable lenders, documentation needs and potential issues.
Your home may be repossessed if you do not keep up repayments on your mortgage.
