Mortgage Guide: First-Time Buyer Mortgage Checklist UK 2026 — From Deposit to Completion

Before you even browse Rightmove, you need a realistic picture of your budget. Mortgage lenders typically offer between 4 and 4.5 times your gross annual income, although some specialist lenders stretch to 5.5 times for certain professions. A couple earning a combined £55,000, for instance, might borrow between £220,000 and £247,500.

Critically, lenders do not just look at your salary. Under FCA affordability rules, they must stress-test your ability to repay at a rate significantly above the one you are offered. With the base rate at 4.50%, most lenders stress-test at around 7.50% (base rate plus 3 percentage points). That means your monthly payments need to remain manageable even if rates climb substantially.

Use this quick formula as a starting point:

• Maximum borrowing = gross annual income x 4.5
• Deposit needed = purchase price minus maximum borrowing
• Monthly repayment estimate = use an online calculator at the stressed rate of ~7.50%

Do not forget to budget for additional costs: solicitor fees (£1,000–£2,000), survey fees (£250–£700), mortgage arrangement fees (£0–£2,000), and moving costs. A common rule of thumb is to set aside an extra £3,000–£5,000 beyond your deposit.

The size of your deposit directly affects the mortgage rate you will be offered. A 5% deposit unlocks the market, but a 10% or 15% deposit opens the door to significantly lower interest rates. On a £250,000 property, the difference between a 5% deposit (£12,500) and a 15% deposit (£37,500) could save you hundreds of pounds per month in repayments.

The most powerful tool for first-time buyers building a deposit is the Lifetime ISA. You can save up to £4,000 per year and the government adds a 25% bonus — that is up to £1,000 of free money annually. The LISA can be used towards your first home provided the property costs no more than £450,000. If you are weighing up your options, our guide to Lifetime ISAs versus Help to Buy ISAs explains the differences in detail. You can also explore our ISA hub and savings hub for broader strategies.

Other schemes worth investigating:

• Shared Ownership — buy between 25% and 75% of a property and pay rent on the rest, reducing the deposit you need. Read our full Shared Ownership explainer for the pros and cons.
• First Homes scheme — discounts of at least 30% on selected new-build properties for eligible first-time buyers, as outlined on gov.uk.
• Help to Buy alternatives — the original equity loan scheme closed, but several successor programmes exist. Our guide to Help to Buy alternatives covers everything currently available.

Your credit score is one of the first things a lender will examine. Months before you apply for a mortgage, take these steps:

1. Check your credit reports with all three UK agencies — Experian, Equifax, and TransUnion. You can do this for free via services such as ClearScore, Credit Karma, and MSE Credit Club.
2. Correct any errors — wrong addresses, accounts that are not yours, or outdated defaults. Dispute them directly with the agency.
3. Register on the electoral roll at your current address. This is one of the simplest and most effective ways to boost your score.
4. Reduce outstanding debt — pay down credit card balances and avoid taking on new credit in the six months before applying.
5. Avoid multiple credit applications — each hard search leaves a mark on your file. Space applications at least three months apart.
6. Demonstrate stability — lenders like to see consistent income, a stable address history, and regular savings patterns.

If your credit history is thin (for example, you have never had a credit card), consider taking out a credit-builder card, spending a small amount each month, and repaying in full. Six months of this activity can make a meaningful difference to your file.

According to the FCA, lenders must assess your creditworthiness before offering a mortgage. A stronger credit file does not just improve your chances of approval — it can also unlock better rates, saving you thousands over the life of the loan.

An Agreement in Principle (AIP), sometimes called a Decision in Principle, is a conditional statement from a lender confirming how much they would be willing to lend you. It is not a guarantee, but it shows estate agents and sellers that you are a serious buyer.

Most AIPs involve a soft credit check (which does not affect your score) and are valid for 60 to 90 days. You can obtain one from a bank, building society, or via a mortgage broker.

Should you use a mortgage broker? For most first-time buyers, the answer is yes. A whole-of-market broker can compare deals from dozens of lenders, including ones you would not find on comparison sites. Some brokers charge a fee (typically £300–£500), while others are paid by commission from the lender. Either way, the potential savings on your interest rate usually far outweigh the cost.

When comparing mortgage deals, pay attention to:

• Initial rate — the rate you pay during the fixed or tracker period (typically 2 or 5 years)
• Revert rate — the standard variable rate (SVR) you move onto after the initial period, often 2–3 percentage points higher
• Arrangement fee — sometimes added to the loan, meaning you pay interest on it
• Early repayment charges — penalties for overpaying or switching during the fixed term

With the base rate at 4.50%, typical two-year fixed rates for first-time buyers with a 10% deposit currently sit between 4.80% and 5.40%. If you are considering how energy efficiency affects your rate, our green mortgages guide is worth a read. For wider context on where rates are heading, see our latest mortgage rate analysis.

For a deeper look at this area, read our guide to Why Overpaying Your Mortgage Is Leaving Thousands on the Table.

Stamp Duty Land Tax (SDLT) is one of the largest upfront costs of buying a home — but first-time buyers benefit from generous relief. Since 1 April 2025, the permanent first-time buyer rates are:

• 0% on the first £300,000
• 5% on the portion from £300,001 to £500,000

This relief applies only to properties costing £500,000 or less. If the purchase price exceeds that threshold, you pay the standard rates instead, which are 0% up to £125,000, 2% on £125,001–£250,000, and 5% on £250,001–£925,000, as set out on gov.uk.

In practice, this means a first-time buyer purchasing at the UK average of £290,000 pays zero SDLT. Someone buying a £400,000 property in London pays just £5,000 (5% on the £100,000 above £300,000). Compare that to a non-first-time buyer at the same price, who would pay £10,000 — a saving of £5,000.

Remember that SDLT applies in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has the Land Transaction Tax (LTT), each with different thresholds and first-time buyer provisions.

Once you have found a property, it is time to make an offer. Estate agents work for the seller, not you, so approach negotiations with that in mind. Research comparable sold prices on the Land Registry or Zoopla, and do not be afraid to offer below the asking price if comparable evidence supports it.

After your offer is accepted:

1. Instruct a solicitor or conveyancer — they handle the legal transfer of ownership (conveyancing). Get quotes from at least three firms. Expect to pay £1,000–£2,000 including disbursements such as Land Registry fees and local authority searches.
2. Submit your full mortgage application — your lender will arrange a valuation survey (to protect their investment, not yours).
3. Commission your own survey — a HomeBuyer Report (Level 2) costs £250–£500 and can identify issues that affect value. For older properties, consider a Building Survey (Level 3) at £500–£700.
4. Review the mortgage offer — once the lender is satisfied, they issue a formal mortgage offer, typically valid for 3–6 months.
5. Exchange contracts — at this point the sale becomes legally binding. You pay your deposit (usually 10% of the purchase price) to the seller's solicitor. Pulling out after exchange incurs serious financial penalties.
6. Completion — typically 1–2 weeks after exchange. The remaining funds are transferred, the keys are handed over, and you officially own your home.

The entire process from offer to completion typically takes 12–16 weeks, though delays with chains, searches, or surveys can extend this considerably. Stay in close contact with your solicitor and mortgage broker throughout.

Congratulations — you have the keys. But the financial responsibilities do not stop at completion. Here is what to arrange in the first few weeks:

• Buildings insurance — your mortgage lender requires this as a condition of the loan. Arrange cover from the day of completion, not after you move in.
• Contents insurance — not legally required, but strongly advisable.
• Life insurance or decreasing term assurance — protects your family if you die before the mortgage is repaid. This is especially important if you have a partner or dependants.
• Income protection insurance — covers your mortgage payments if you are unable to work due to illness or injury.
• Council Tax — notify your local authority of your move. First-time buyers do not receive any Council Tax discount by default (only single-person households get the 25% reduction).
• Utility providers — take meter readings on moving day and set up new accounts.

Looking further ahead, think about overpayments. Most mortgage deals allow you to overpay by up to 10% of the outstanding balance per year without penalty. On a £225,000 mortgage at 5%, overpaying just £100 per month would save you over £16,000 in interest and cut roughly 3.5 years off a 25-year term. Even small, regular overpayments compound into significant savings over time.

Finally, diarise your fixed-rate end date. Remortgaging before you fall onto your lender's SVR — which can be 2–3 percentage points above your fixed rate — is one of the simplest ways to keep your housing costs under control. Start shopping for a new deal 3–4 months before your current rate expires.