← Back to Articles · Calculator

First-Time Buyer Mortgage (UK) – A Simple Step-by-Step Guide

Published: 8 Feb 2026

UK terminology: AIP/DIP, conveyancing, SDLT, RICS surveys, exchange & completion.

Buying your first home in the UK can feel complicated because there are several moving parts: your deposit, your credit profile, lender affordability checks, and the conveyancing (legal) process. The good news is that most first-time buyer journeys follow the same steps. Once you know the order, it becomes much easier to plan.

Step 1: Work out your realistic budget (not just the maximum)

Start with three numbers:

• Deposit: how much you can put down (including any gifted deposit).
• Monthly payment comfort zone: what you can afford without stretching your lifestyle.
• Upfront buying costs: solicitor/conveyancing fees, searches, surveys, and SDLT (if applicable).

Many lenders will lend up to around 4–4.5x income (not a rule, and affordability varies), but your personal comfort level matters just as much—especially with energy bills and general cost-of-living changes.

Step 2: Check your credit file early (UK-specific)

Before you apply, check your credit reports and tidy up common issues:

• Make sure you’re on the electoral roll at your current address.
• Check your address history is consistent across accounts.
• Avoid taking new credit (car finance, new credit cards) right before applying.
• Pay all commitments on time (even one missed payment can hurt).

Step 3: Gather your documents

Lenders and brokers commonly ask for:

• Photo ID + proof of address
• Recent payslips and P60 (or contracts if you’re a contractor)
• Bank statements (usually 3 months; sometimes more)
• Evidence of deposit and source of funds (including gifted deposit documents if relevant)
• If self-employed: SA302s + Tax Year Overviews (and/or accounts), typically 2+ years

Step 4: Get an Agreement in Principle (AIP) / Decision in Principle (DIP)

An AIP/DIP is a lender’s initial indication of what you may be able to borrow. It’s not a full offer, but it helps you:

• House-hunt with confidence and a clearer budget
• Strengthen your position when making an offer

Step 5: Make an offer and start the full mortgage application

Once your offer is accepted, you’ll proceed with the full application. This is where the lender verifies your income, spending patterns, deposit source, and other details.

Step 6: Valuation, underwriting, and surveys

The lender will do a mortgage valuation to confirm the property value for lending purposes. This is not the same as a home survey (which is for your peace of mind). Many buyers choose:

• RICS Home Survey Level 2 (common for typical properties)
• RICS Home Survey Level 3 (older homes, unusual construction, or if you want deeper detail)

If the valuation comes back lower than the agreed price (a “down valuation”), you may need to renegotiate, increase your deposit, or reconsider the purchase.

Step 7: Mortgage offer, exchange, completion

When the lender is satisfied, they issue a formal mortgage offer. Then:

• Exchange of contracts: key commitment point; you’ll usually pay your exchange deposit (often 10%).
• Completion: funds are transferred and you get the keys.