First-Time Homebuyer’s Guide: Navigating the Mortgage Process

May 9, 2025
5 min read

Equip yourself with essential knowledge

Buying your first home is an exciting milestone, but the mortgage process can feel overwhelming if you don’t know where to start. With changes in the housing market, evolving lending rules, and a range of mortgage products available, understanding your options is key to getting the right deal and securing your dream home.

At Endurance Mortgages, we specialise in helping first-time buyers navigate the mortgage process with confidence. Here’s what you need to know to make your journey to homeownership as smooth as possible.

1. Understanding How Mortgages Work

A mortgage is a loan used to buy a property, which you repay in monthly instalments over an agreed period, usually 25 to 35 years. Your mortgage repayments will depend on:

How much you borrow (loan amount)
Your interest rate (fixed or variable)
The loan term (how long you take to repay it)

Lenders will assess your financial situation to ensure you can afford the mortgage, considering factors like your income, outgoings, credit history, and deposit.

Key takeaway: The bigger your deposit, the less you need to borrow, which can give you access to better interest rates and lower monthly payments.

2. How Much Deposit Do You Need?

Saving for a deposit is often the biggest challenge for first-time buyers. The amount you need depends on the lender and the price of the home you want to buy.

Standard deposit – Most lenders require at least 5% of the property price.
Low deposit options – Some lenders offer 100% mortgages, meaning no deposit is needed if you meet their criteria.
Government schemes – You may qualify for support through schemes such as First Homes, Shared Ownership, or a Lifetime ISA, which can boost your deposit savings.

Example: If you’re buying a £250,000 home, a 5% deposit would be £12,500, while a 10% deposit would be £25,000.

Key takeaway: The more you can save for a deposit, the more options you’ll have for better mortgage deals with lower interest rates.

3. Understanding Mortgage Types

Choosing the right mortgage can make a big difference in how much you pay over time. Here are the main types available:

Fixed-rate mortgage – Your interest rate stays the same for a set period (usually 2, 5, or 10 years), meaning your monthly payments won’t change.
Tracker mortgage – Your interest rate follows the Bank of England base rate, so payments can go up or down.
Variable-rate mortgage – Your lender sets the rate, which can change at any time, affecting your payments.

Key takeaway: If you prefer stability and want to budget easily, a fixed-rate mortgage may be best. If you can handle some risk, a tracker or variable mortgage could save you money when rates are low.

4. Checking Your Credit Score

Before approving your mortgage, lenders will check your credit history to see how reliable you are at repaying debt. A good credit score can help you get better mortgage deals.

Ways to improve your credit score before applying:

Check your credit report for mistakes and correct any errors.
Pay off outstanding debts and avoid taking on new credit.
Stay within your credit card limit and make payments on time.
Register on the electoral roll, as this helps lenders confirm your identity.

Key takeaway: The stronger your credit score, the more mortgage options you’ll have with lower interest rates.

5. Understanding Mortgage Affordability

Lenders will assess your income and expenses to ensure you can afford your mortgage payments. This process includes:

Checking your salary, bonuses, and additional income.
Reviewing your monthly expenses, debts, and financial commitments.
Applying a stress test to see if you could still afford repayments if interest rates rise.

Key takeaway: Before applying, review your budget and reduce unnecessary spending to improve your affordability.

6. Getting a Mortgage Agreement in Principle (AIP)

A Mortgage Agreement in Principle (AIP) is a written estimate from a lender confirming how much they might be willing to lend you. This helps you:

Understand your budget before house hunting.
Show sellers and estate agents you are a serious buyer.
Speed up the mortgage application process.

Key takeaway: Get an AIP before you start viewing properties to strengthen your position as a buyer.

7. The Mortgage Application Process

Once you find a property and have your offer accepted, the mortgage application process begins. Here’s what happens next:

Submit your application – Your mortgage broker or lender will ask for documents like payslips, bank statements, and ID.
Property valuation – The lender will arrange a valuation to check the home’s worth.
Underwriting checks – The lender assesses your finances and credit history before making a final decision.
Mortgage offer – If approved, you receive a formal mortgage offer outlining the terms.
Legal work and contracts – A solicitor or conveyancer handles the legal paperwork, including property searches and contracts.
Exchange and completion – Once contracts are exchanged, your mortgage funds are transferred, and you get the keys to your new home.

Key takeaway: A mortgage broker can guide you through the application process and ensure everything runs smoothly.

8. Additional Costs to Consider

Buying a home involves more than just a deposit. Be prepared for extra costs, including:

Stamp Duty – First-time buyers pay no Stamp Duty on properties up to £300,000.
Legal fees – Solicitors charge between £1,000 – £2,500 for legal work.
Mortgage fees – Some lenders charge arrangement fees, which can be added to the loan.
Survey costs – A property survey costs between £300 – £1,500, depending on the level of detail required.
Moving costs – Budget for removals, furniture, and initial home improvements.

Key takeaway: Plan ahead and factor in these costs to avoid surprises.

9. Why Work with a Mortgage Broker?

The mortgage market is complex, and finding the right deal on your own can be time-consuming. A mortgage broker can help by:

Comparing the most suitable mortgage deals from multiple lenders.
Offering expert advice on eligibility and affordability.
Guiding you through the application process, reducing stress and paperwork.

At Endurance Mortgages, we specialise in helping first-time buyers secure the right mortgage with clear, honest advice.

Final Thoughts

Buying your first home is a big step, but with the right preparation, you can navigate the mortgage process with confidence.

To get started:

✔ Save as much deposit as possible to access better mortgage deals.
✔ Check your credit score and improve it before applying.
✔ Get a Mortgage Agreement in Principle (AIP) to know your budget.
✔ Compare mortgage types to find the most suitable option for you.
✔ Work with a mortgage broker to get expert guidance.

If you’re a first-time buyer in 2025, Endurance Mortgages is here to help. Contact us today for personalised mortgage advice and start your journey to homeownership.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.