How to get a mortgage as a first-time buyer in the UK


By UK Mortgage Centre

IF you’re a first-time buyer in the UK and you’re ready to take the exciting step of purchasing your own property, it’s important to understand the mortgage application process.

Getting a mortgage can seem overwhelming at first, but with the right preparation and guidance from a mortgage broker, you can make the process smoother and increase your chances of securing the best mortgage rate possible.

In this blog, we will guide you through the key steps involved in getting a mortgage as a first-time buyer in the UK.

Collate Your Documents

Before applying for a mortgage, you need to gather important documents that your mortgage broker will need to submit your application and help you get the best rate possible. While we provide a free document checklist that you can download from the link in the description, here’s an overview of the type of documents you’ll typically need as an employed individual:

  • Proof of identity: This can be your driver’s license, passport, or utility bill. Lenders usually require at least two forms of identification, including an up-to-date bill.
  • National Insurance number: You can find this on a wage slip or by accessing your government gateway account.
  • Proof of employment
  • Proof of income: Usually, at least ten wage slips are required, along with any proof of additional income such as benefits, gifts, overtime, and bonuses.
  • Proof of deposit and its source: Whether your deposit comes from savings, the sale of a property, or a gift, you need to provide evidence.
  • Details of all current debts
  • Proof of child benefit received
  • Bank statements

While this may seem like a lot, it’s crucial to prepare and send the correct documents to your broker. Lenders want to verify the accuracy of the information your broker inputs into your application.

Download our document checklist here

 Submitting Your Documents to a Mortgage Broker

Once you have your documents together, you can send them to your mortgage broker. With these documents, your broker can start calculating how much you can borrow, also known as your borrowing ceiling. In the meantime, you can use affordability calculators available online, such as the one on our website, to get an idea of how much you can afford and start exploring properties on platforms like Rightmove.

Obtaining an Agreement in Principle (AIP)

Your broker will work on securing an Agreement in Principle (AIP) for you. An AIP is a document that demonstrates to estate agents that you are a serious buyer and have a provisional mortgage offer in place. This document will be required when making a formal offer on a property.

Finalising Your Mortgage Offer

Once you’ve put an offer on a property and it’s been accepted, your broker will commence the process of finalizing your mortgage offer. During this phase, you’ll need to decide on your mortgage

term, which refers to the length of time you want to repay the loan to the lender. You can choose between a shorter-term mortgage or a longer-term mortgage.

It’s important to note that shorter mortgage terms come with higher monthly repayments but result in paying less interest overall. On the other hand, longer mortgage terms offer lower monthly repayments but result in paying more interest over the course of the loan. Your broker will guide you through this decision-making process and help you plan accordingly based on your budget and financial goals.

Choosing Your Mortgage Type

Your broker will also discuss the different types of mortgages available and help you determine which one suits your needs. As a first-time buyer, most people opt for a fixed-rate mortgage. This means your monthly repayments will remain the same throughout the fixed-rate period, offering stability and predictability in your monthly outgoings. In the description box, you’ll find a guide explaining the various types of mortgages and repayment options, allowing you to explore and choose the most suitable option for your future.

Submitting Your Application and Receiving Your Mortgage Agreement

Once your broker has all the necessary information, they will submit your application to your chosen lender. The lender will review your application and, if approved, issue your final mortgage agreement. This agreement outlines the terms and conditions of your mortgage, including the interest rate and repayment schedule.

Navigating the process of getting a mortgage as a first-time buyer in the UK can be made easier with the assistance of a knowledgeable mortgage broker.

By collating the required documents, working closely with your broker, and understanding your options, you can increase your chances of securing a mortgage that aligns with your financial goals and aspirations of homeownership.

Remember, each step brings you closer to the exciting moment of owning your own home.

For further information or to secure your mortgage in principle give us a call on 01925 573 328 or fill out the form and we’ll get back to you ASAP!

Download our FREE First Time Buyer Guide


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