How to Get a Mortgage as a First-Time Buyer in the UK (2026 Guide)

Buying your first home is one of the biggest financial decisions you'll ever make. The mortgage is the part that scares most people — partly because the jargon is dense, partly because the process is genuinely complicated, and partly because the rules have changed several times in the last few years.

This guide walks you through the whole journey, from saving the deposit to getting the keys. It is written for someone who has never had a mortgage before. If you want to skip ahead, the headings below are listed roughly in the order you'll need them.

Step 1: Understand what a mortgage actually is

A mortgage is a loan secured against a property. The lender — usually a bank or building society — gives you the money to buy the house, and you pay it back with interest, typically over 25 to 35 years. If you stop paying, the lender has the legal right to repossess and sell the property to recover their money. That security is why mortgage interest rates are far lower than personal loan rates.

The two main flavours you'll see are fixed-rate mortgages, where your interest rate is locked in for a set period (usually 2, 3, 5 or 10 years), and tracker mortgages, which move up and down with the Bank of England base rate. Most first-time buyers choose a fixed rate because it makes monthly budgeting predictable. We compare them in detail in our fixed vs tracker guide.

Step 2: Work out how much you can afford

Lenders use two filters: how much you can borrow, and how much you can afford to repay each month. The first is usually capped at around 4 to 4.5 times your annual gross income, though some lenders go to 5 or 5.5x for buyers with strong affordability. The second is tested by simulating what would happen if rates rose to roughly 6–8%.

Use our mortgage calculator to see what monthly repayments would look like at different price points and rates. Then read How much can I borrow for a mortgage? for the affordability detail.

A useful rule of thumb: your total monthly housing cost (mortgage, insurance, council tax, utilities) should ideally come in under 35% of your take-home pay. Anything above 40% will leave you stressed when life happens.

Step 3: Save your deposit

The minimum deposit for a UK residential mortgage is 5% of the property price, but you'll get noticeably better rates at 10%, even better at 15%, and the very best rates kick in at 25% (a 75% loan-to-value ratio). Most first-time buyers land somewhere between 10% and 15%.

A few ways to accelerate your deposit:

  • Lifetime ISA: the government adds a 25% bonus on contributions up to £4,000 a year — that's a free £1,000 annually if you max it out. Read our Lifetime ISA guide before opening one; the rules trip people up.
  • Family gift: parents or grandparents can gift you a deposit. The lender will need a "gifted deposit letter" confirming it is not a loan.
  • First Homes scheme: in some areas you can buy a new-build at 30–50% off market price. See first-time buyer schemes for the rules.

For more savings strategies, see How to save for a house deposit fast.

Step 4: Sort your credit file

Lenders pull your credit file from one or more of the three UK credit reference agencies — Experian, Equifax and TransUnion. Before you apply, do these three things:

  1. Get all three reports for free (Experian's free Boost account, ClearScore, and Credit Karma between them cover all three).
  2. Check the electoral roll — being on it adds points instantly.
  3. Pay every bill on time for at least 6 months, ideally 12, before applying.

A "good" score on Experian (881+) is roughly the threshold for mainstream lenders. Below that, your options narrow but don't disappear — see Bad credit mortgages.

The full deep-dive is in What credit score do you need for a mortgage?.

Step 5: Get a mortgage in principle

A mortgage in principle (sometimes "agreement in principle" or AIP) is a written statement from a lender saying they would, in principle, lend you up to £X based on a soft credit check. It usually takes 15 minutes online and lasts 60–90 days.

You need an AIP for two reasons:

  • Estate agents will take you seriously. No agent in a competitive market will let you view a property without one.
  • You'll know your real budget. The figure you can borrow is often higher or lower than your guess.

A soft credit check leaves no footprint, so getting AIPs from 2–3 lenders to compare is fine. Don't apply for the full mortgage with multiple lenders, though — that does leave a footprint.

Full process explained in How does a mortgage in principle work?.

Step 6: Decide — broker or direct?

You have two routes to a mortgage:

  • Direct: apply to a single lender (your bank, or one you've found on a comparison site).
  • Broker: a regulated intermediary who searches across the market — typically 90+ lenders — and submits the application on your behalf.

For first-time buyers, a broker is almost always worth it. Many work fee-free (paid by the lender) and they can access deals that aren't on any comparison site. The big online players are Habito, Mojo Mortgages, L&C, and Trussle, all of which are free. We compare them in Mortgage broker vs going direct to a bank.

Get a free mortgage quote — compare 90+ UK lenders in 5 minutes, no credit check required.

Step 7: Find the right property

There's no point going through the mortgage maze for a property that won't pass the lender's valuation. Watch out for:

  • Non-standard construction (concrete, timber-frame, prefab) — many lenders won't touch these
  • Short leases (under 80 years remaining) — extension costs can be tens of thousands
  • Above commercial premises (especially takeaways and bars) — limits your lender choice severely
  • Cladding issues in flats — still a flashpoint post-Grenfell

When you find one you want, make a written offer through the estate agent. Once accepted, the property is "sold subject to contract" but is not legally yours until completion.

Step 8: Submit your full application

Now you commit to one lender and submit a full application. You'll need to upload:

  • 3 months of payslips (or 2–3 years of accounts if self-employed)
  • 3 months of bank statements
  • ID and proof of address
  • Details of any debts and outgoings

The lender will run a hard credit search, instruct a valuation of the property, and underwrite the application. This usually takes 2–6 weeks. Expect to be asked for clarifications — large transactions on your bank statement, gambling spend, even regular Klarna purchases can prompt a question.

Full document list: What documents do you need for a mortgage application?.

Step 9: Mortgage offer issued

If everything passes, the lender issues a formal mortgage offer — usually valid for 6 months. This goes to you, your conveyancer, and the lender's solicitor.

In parallel, your conveyancer is doing the legal work: searches with the local council, reviewing the title deeds, raising enquiries with the seller's solicitor. Read What is conveyancing and how much does it cost? for the detail. Budget around £1,000–£1,800 in conveyancing fees.

Step 10: Exchange and complete

Exchange of contracts is the legally binding moment — once contracts exchange, you can't back out without losing your deposit. Completion is the day the money moves and you get the keys, usually 1–4 weeks later. We unpack both in Exchange of contracts vs completion.

On completion day:

  • The lender sends the loan to your conveyancer
  • Your conveyancer sends the full purchase price to the seller's conveyancer
  • The estate agent releases the keys
  • Stamp duty is paid within 14 days

For first-time buyers in England buying a property under £300,000 (post-April 2025), stamp duty is £0. Above that, it's 5% on the slice from £300,001 to £500,000. Above £500,000, you lose the relief entirely. See UK stamp duty for first-time buyers.

Common mistakes to avoid

  • Maxing out your borrowing. Just because you can borrow 4.5x your salary doesn't mean you should. Build in headroom for rate rises.
  • Changing jobs mid-application. Lenders may withdraw the offer.
  • Big credit applications during the process. A new car loan or 0% credit card can re-trigger affordability checks.
  • Forgetting the extras. Conveyancing, surveys, removals, and emergency repairs add £3,000–£8,000 on top of stamp duty.

Frequently asked questions

How long does the whole process take? From mortgage in principle to keys, plan for 3–4 months. New-builds and chains can stretch this to 6 months or more.

Can I get a mortgage with a 5% deposit? Yes — see our 5% deposit mortgage guide. Rates are higher than at 10% or 15%, but it's a viable route.

Do I need life insurance to get a mortgage? No. Life insurance is not legally required, but most lenders will ask whether you have it. It's a sensible product if you have dependants.

Will student loan affect my mortgage? Yes — lenders treat the monthly student loan repayment as an outgoing, which reduces what you can borrow. The loan balance itself doesn't matter.

What is a "stress test"? The lender simulates what would happen if interest rates rose by 3 percentage points or more. If you'd struggle, they cap how much they'll lend.

This article is for informational purposes only and does not constitute financial advice. Always consult a qualified mortgage adviser before making a decision.