First‑Time Buyer Mortgage Checklist: What You Need And When

First‑Time Buyer Mortgage Checklist: What You Need And When

Starting your first home purchase in the New Year feels exciting, but the process can look complex at first glance. This step‑by‑step checklist explains what lenders look for, what to prepare, how much you might borrow, and how we keep everything moving with estate agents, surveyors and conveyancers. Use it as your plain‑English guide from first query to getting your keys.

What lenders assess: the basics

Lenders all check three areas in detail, and your adviser will shape recommendations around them.

• Income: salary, bonuses, commissions, overtime and regular allowances. For self‑employed, lenders focus on taxable profits or salary plus dividends from company accounts.
• Commitments: credit cards, loans, car finance, student loan deductions, childcare, maintenance and any regular outgoings.
• Credit history: payment conduct, limits and balances, electoral roll, and any adverse markers like defaults, CCJs or missed payments.

Good to know: one small credit issue will not always stop you. Some lenders are more flexible than others on past blips if everything else stacks up.

How much deposit do you need?

• Minimum deposit: typically 5% for first‑time buyers with clean credit.
• Stronger options: 10% to 15% usually unlocks lower rates and broader choice.
• Adverse credit: expect to need a larger deposit, often 15% to 25%, with a specialist lender.

Example: a £220,000 purchase with a 10% deposit needs £22,000 cash, plus costs like legal fees, valuation fees and moving expenses.

How much can you borrow, and what salary do you need?

A quick rule of thumb is up to about 4.5 times gross annual income, though this varies by lender and your monthly outgoings.

• Single applicant on £35,000: rough maximum £157,500.
• Joint applicants on £30,000 and £25,000: combined £55,000, rough maximum £247,500.
• With higher unsecured debts or childcare costs, the approved amount can be lower. With lower commitments and strong credit conduct, some lenders may stretch above 4.5 times in limited scenarios.

Affordability is driven by monthly budget rather than headline multiple. Lenders will model your net income against essential bills, debts and a buffer for future rate changes.

Realistic affordability examples

• Example 1, single buyer: £35,000 salary, £150 car finance, £100 credit card payment. Likely borrowing range £140,000 to £155,000 depending on lender and rate.
• Example 2, couple: £55,000 combined salary, £0 debts, one child. Likely borrowing range £220,000 to £250,000 depending on childcare costs and chosen product fees.
• Example 3, self‑employed: average taxable profits of £42,000 over two years, £50 credit card payment. Likely borrowing range £170,000 to £190,000 depending on lender methodology.

These are illustrations, not offers. A tailored calculation will refine the numbers for your exact situation.

What do you need when applying for a mortgage?

Prepare the following so we can move quickly.

Employed applicants:

• Last 3 months’ payslips and latest P60
• Employment contract or employer letter if recently started
• Last 3 months’ bank statements, all accounts used for income and bills
• Proof of deposit, savings statements or gifted‑deposit letter with ID from the donor
• Photo ID and proof of address

Self‑employed applicants:

• Last 2 to 3 years’ SA302s and Tax Year Overviews, or
• Limited company directors, last 2 to 3 years’ full accounts and accountant’s reference
• Business bank statements, usually 3 to 6 months
• Personal bank statements, proof of deposit, ID and address as above

Extra documents:

• Credit report from a free‑to‑check service helps us spot issues early
• Details of any benefits, maintenance or secondary income

The stages: from Decision in Principle to completion

1. Discovery and affordability: we discuss your goals, budget and timescales, then outline your borrowing range and deposit options.
2. Decision in Principle (DIP): a soft search in most cases that checks eligibility. It strengthens your position when viewing and making offers.
3. Property offer and valuation: once your offer is accepted, we submit the full application. The lender instructs a valuation to confirm the property is suitable security.
4. Conveyancing: your chosen solicitor runs searches, reviews the contract and raises enquiries. We coordinate with them and the lender to keep dates aligned.
5. Mortgage offer: once the valuation and underwriting are complete, the lender issues the binding offer.
6. Exchange and completion: you exchange contracts, pay the deposit to the solicitor and set a completion date. On completion day, funds are released and you get the keys.

Throughout, we liaise with estate agents to manage expectations, with surveyors on valuation timing, and with conveyancers on searches and enquiries so your purchase stays on track.

Fixing for 2 years or 5 years?

• 2‑year fixed rate: usually lower early repayment charges and earlier reassessment point. Suits buyers who expect changes soon, such as pay rises, overpayments or moving again.
• 5‑year fixed rate: payment stability for longer, helpful for budgeting and avoiding two rounds of fees. Suits buyers planning to stay put and who value longer term certainty.

Also factor in – product fees, cashback incentives, overpayment allowances, portability and any early repayment charges if plans might change. We will map product features to your plans, not just the headline rate.

How to compare rates without hurting your credit file

• Use an adviser to pre‑screen criteria and run soft searches where possible.
• Avoid submitting multiple full applications at once; hard searches in quick succession can dent your score.
• Review the true cost: interest rate, product fee, valuation, cashbacks and any incentives across the fixed term, not just month one.
• Check eligibility before applying, including loan‑to‑income caps, property types and minimum deposit rules.

If you want to independently compare, start with soft‑search friendly tools and stop short of full applications until we confirm suitability. We can help you compare mortgage deals across the market and manage the application strategy.

Current mortgage rates for first‑time buyers, and whether they are better

Rates change frequently as lenders adjust to swap rates and market competition. First‑time buyers do not automatically get better rates than home movers, however putting down a larger deposit often brings lower pricing because the risk to the lender is reduced. Your personal rate depends on loan‑to‑value, product type, credit profile and fees. Ask for a personalised illustration for today’s options and the total cost over the fixed period.

Common pitfalls to avoid

• Stretching to the limit: aim for a buffer so rising costs or life changes do not create stress.
• Ignoring fees: a slightly higher rate with a low fee can be cheaper overall than a headline low‑rate, high‑fee product, especially on smaller loans.
• Credit file surprises: check reports early and correct errors before applying.
• Inconsistent bank conduct: avoid unarranged overdrafts, gambling spikes or bounced payments in the 3 to 6 months before application.
• Changing jobs mid‑process: not always a problem, but tell us early so we can pick lenders comfortable with probation.
• Skipping protection: consider how payments would be covered if illness or injury stopped income. We can discuss suitable cover options alongside your mortgage.

How first‑time buyers get a mortgage with us

We provide whole‑of‑market advice, source suitable products, prepare your application, and then manage all parties through to completion. You focus on choosing your home while we handle the paperwork, criteria checks and timelines. If you are ready to get started, we can help you get a mortgage with clear, step‑by‑step guidance and regular updates.

Quick answers to the top questions

• What do you need when applying? ID, proof of address, deposit evidence, bank statements, income proofs, and for self‑employed, SA302s or accounts.
• What salary do you need? There is no set number. Lenders work from affordability, but a broad guide is up to about 4.5 times income subject to commitments.
• How much deposit do you need? Usually 5% minimum, with better choice and pricing at 10% to 15% and above.
• How much can a first‑time buyer get? Often 4 to 4.5 times income, adjusted for debts, dependants and spending.
• What are current rates and are they better for first‑time buyers? Rates move, and first‑time buyers do not always get cheaper pricing; bigger deposits usually reduce the rate.

Your home may be repossessed if you do not keep up repayments on your mortgage or any loan secured against it.

Summary

Buying your first home is achievable with a clear plan. Know what lenders assess, gather documents early, secure a Decision in Principle and choose a fixed term that matches your plans. Compare the total cost of products and protect your credit score by using soft searches and a single well‑targeted application. We will coordinate with estate agents, surveyors and conveyancers so you can progress smoothly to completion. When you are ready, we can help you apply for a mortgage and keep things simple from start to finish.