Buying your first home can feel like a maze, but the moving parts are more predictable than they look. Getting your first mortgage is easier when you treat it like a sequence of decisions rather than one giant financial test. This guide breaks the topic down into plain English so you can move from browsing to action with more confidence.
Start with your real budget, not the lender’s maximum
A lender’s headline number is only a starting point. The safer target is the payment you can still manage after bills, travel, childcare, food and a monthly buffer for surprises.
- Work from take-home pay, not gross salary, when deciding what feels comfortable each month.
- Stress-test your numbers against a higher rate, because affordability can tighten quickly when deals end or rates rise.
- Include service charges, ground rent, insurance and commuting costs if you’re buying a flat or moving area.
- Keep an emergency fund separate from your deposit so you are not cash-poor on completion day.
How deposits work in 2026
In most cases, UK buyers can still find mortgages from a 5% deposit, but lower-deposit deals usually come with tighter criteria and pricier rates than 10% or 15% options.
- A 5% deposit can open the door, especially where lenders support low-deposit lending, but a bigger deposit usually improves choice and price.
- The permanent Mortgage Guarantee Scheme is designed to support 95% loan-to-value borrowing for eligible repayment mortgages on a main home.
- Gifted deposits are common, but lenders normally want a signed gift letter, proof of funds and confirmation that the money is not repayable.
- A Lifetime ISA can help first-time buyers boost savings with a government bonus if the purchase meets the scheme rules.
The first-mortgage process in plain English
Most successful first purchases follow the same sequence: budget, deposit, Mortgage in Principle, property search, full application, valuation, legal work and completion.
- Get your paperwork ready before viewing seriously, because delays often start when income or deposit evidence is missing.
- Use a Mortgage in Principle to set a sensible search range and show estate agents you are organised.
- Once your offer is accepted, the lender underwrites the case while the solicitor handles searches, title checks and contracts.
- Completion is the day funds are released and you get the keys, but the expensive part starts earlier with fees, surveys and moving costs.
Budget for the costs people forget
The mortgage payment is only one part of the cost of moving. The hidden extras can be large enough to derail a deal if you have saved only for the deposit.
- Common costs include valuation gaps, surveys, solicitor fees, search fees, broker fees, removal costs and initial repairs.
- Leasehold purchases can also bring service charges, ground rent, deed of covenant fees and notice fees after completion.
- MoneyHelper warns that buyers and movers can spend thousands on fees before counting the deposit and any Stamp Duty or Land Tax.
- Build a contingency fund so a repair issue, urgent boiler replacement or extra legal query does not push you into expensive borrowing.
Bottom line
The strongest first-mortgage plan is simple: know your real budget, build the deposit and fees pot, get a Mortgage in Principle and keep your paperwork clean from day one.
FAQs
Should I borrow the maximum a lender offers?
Not automatically. A lender’s limit and your comfort zone are often different. Choose a payment that still leaves room for savings, repairs and higher household costs.
Do lenders use income multiples only?
No. Income multiples matter, but lenders also review debts, childcare, credit commitments, regular spending and stress tests before confirming affordability.
General information only. This article is not personal financial advice.