Never had a mortgage?
We can guide you through the key stages of the residential mortgage process, including your deposit, borrowing position, Agreement in Principle, application and completion.
First-Time Buyers
Your First Home, Made Clearer
Buying your first property can be exciting, but the mortgage process can also feel unfamiliar. Understanding your deposit, borrowing capacity, Loan-to-Value and the costs involved is an important part of preparing for your purchase.
We can guide you through the process, from understanding your initial borrowing position through to your mortgage application and completion.
Your Buying Timeline
Five Steps To Your First Home
- 01
Understand Your Position
We review your income, deposit, credit commitments and expenditure to establish an indicative borrowing position.
- 02
Agreement in Principle
An Agreement in Principle indicates what a lender may be prepared to lend based on the information available at that stage.
- 03
Find Your Property
With your budget understood, you can view properties and make an offer with greater confidence.
- 04
Mortgage Application
We guide you through the full application and the documentation the lender requires.
- 05
Offer and Completion
Where approved, the lender issues a formal mortgage offer and the legal process progresses to completion.
Loan-to-Value
Understanding The LTV Scale
Loan-to-Value, or LTV, is the percentage of a property's value funded through a mortgage. For example, a £300,000 property with a £30,000 deposit requires a £270,000 mortgage — a 90% LTV mortgage.
95% LTV
5% deposit
The smallest deposit tier. Availability and criteria can be more limited.
90% LTV
10% deposit
A common first-time buyer position with a wider range of products.
85% LTV
15% deposit
A larger deposit can reduce the amount you need to borrow.
75% LTV
25% deposit
Lower LTV tiers may open up further product options.
The deposit required depends on the mortgage product and lender criteria available to you. These tiers are a general illustration only.
Budgeting
The Hidden Cost Checklist
Depending on your circumstances, you may need to budget for costs beyond your deposit.
Purchase Costs
- Legal fees
- Property searches
- Survey costs
- Valuation costs
- Applicable property taxes
Mortgage & Moving Costs
- Mortgage arrangement fees
- Buildings and contents insurance
- Life insurance and protection
- Removal and moving costs
- Initial furnishing and repairs
Common Questions
First-Time Buyer Essentials
How much can I borrow?
As a general guide, borrowing is often around 4 to 4.5 times annual income, although the amount available depends on the lender's affordability assessment and criteria.
Do I need an AIP first?
Not necessarily, but obtaining one can help you understand your potential borrowing position. It should not be treated as a guarantee of approval.
Ready To Start Your First Purchase?
Tell us about your circumstances and your plans, and we can discuss the next steps available to you.
Important Information
Mortgage availability and the terms offered will depend on your individual circumstances and the criteria of the relevant lender.
An Agreement in Principle is not a formal mortgage offer and does not guarantee that an application will be approved.
Your home may be repossessed if you do not keep up repayments on your mortgage.