First-Time Buyer Guide

A step-by-step guide to buying your first home in the UK

Buying your first home is a major milestone, but if you've never been through the process before, it can be difficult to know where to begin.

How much deposit do you need? How much could you borrow? Should you get an Agreement in Principle before viewing properties? What happens after an offer is accepted? And at what point do solicitors, surveys and insurance come into the picture?

This guide takes you through the process from preparing your finances to getting the keys to your first home.

At Cambs Ely Mortgages, we help first-time buyers in Ely, Cambridge, Cambridgeshire and across England understand their mortgage options and navigate the buying process.

1. Start by Understanding Your Finances

Before looking at properties, it is worth getting a clear picture of your financial position.

A mortgage lender doesn't simply look at your salary and multiply it by a fixed number. Affordability assessments can consider your income, regular financial commitments, existing credit, dependants, mortgage term, interest rates and other circumstances.

Two lenders looking at exactly the same applicants can reach different conclusions about how much they are prepared to lend.

This is one reason speaking to a mortgage adviser before starting your property search can be useful.

Knowing approximately what you could borrow, what deposit you have available and what monthly payment feels comfortable can give you a much more realistic property budget.

You can also experiment with different scenarios using our Mortgage Calculators.

2. Build Your Deposit

For most first-time buyers, the deposit is one of the biggest hurdles.

Your deposit is the portion of the purchase price you provide yourself, with the mortgage covering the remainder.

For example, if you purchased a property for £250,000 with a £25,000 deposit, you would require a £225,000 mortgage. This would represent a 90% loan-to-value, commonly shortened to 90% LTV.

Generally, a larger deposit reduces the percentage of the property's value that needs to be borrowed. This can sometimes provide access to a wider selection of mortgage products or more favourable rates, although this will depend on lender criteria and market conditions.

Remember that your deposit isn't the only money you may need.

You should also budget for potential costs such as:

• Solicitor or conveyancing fees

• Survey costs

• Mortgage-related fees where applicable

• Moving costs

• Insurance

• Furnishings and initial property expenses

• Tax where applicable

Try not to use every pound of your savings for the purchase. Having an emergency fund after completion can be valuable when you're responsible for your own property.

3. Check Your Credit Position

Your credit history can play an important role in a mortgage application.

Before applying, check that the information held about you is accurate. Pay particular attention to your registered addresses, credit accounts and payment history.

During the period leading up to a mortgage application, keeping your finances stable is particularly important.

Avoid taking unnecessary new borrowing simply because you've obtained an Agreement in Principle.

This includes things such as new personal loans, car finance, credit cards and excessive use of Buy Now Pay Later facilities.

An Agreement in Principle is not a mortgage offer. A lender can reassess your circumstances when you make the full application.

4. Speak to a Mortgage Adviser

You don't have to wait until you've found a property before discussing your mortgage.

In fact, having the conversation earlier can be helpful.

A mortgage adviser can look at your circumstances and help you understand:

How much you may be able to borrow

Different lenders have different affordability models.

What deposit may be appropriate

Your available deposit affects the loan-to-value and potentially the mortgage products available.

Which lenders may consider your circumstances

This can become particularly important if you're self-employed, have recently changed jobs, receive additional income, have a limited UK address history or have had previous credit problems.

What your likely monthly payments could look like

Being able to borrow a particular amount doesn't necessarily mean you should borrow it. Your mortgage needs to fit your wider household budget.

Cambs Ely Mortgages has access to over 200 lenders, allowing us to investigate options based on your individual circumstances rather than simply looking at one bank.

5. Get an Agreement in Principle

You may hear this referred to as an:

Agreement in Principle (AIP)
Decision in Principle (DIP)
Mortgage in Principle (MIP)

They broadly describe the same stage of the process.

An Agreement in Principle gives an indication of what a lender may be prepared to lend based on the information supplied and its initial assessment.

It can be useful when viewing properties because it demonstrates that you've started investigating your mortgage position.

However, an AIP is not a guarantee of lending.

The eventual mortgage remains subject to the lender's full underwriting, property assessment, eligibility criteria and confirmation of the information provided.

For a more detailed explanation, visit our Agreement in Principle Guide.

6. Start Looking for Your First Home

Now comes the exciting part.

Once you understand your approximate budget and mortgage position, you can start viewing properties.

Try not to focus exclusively on how a property looks.

Think about the things that are difficult or expensive to change.

Consider the location, transport links, parking, tenure, property construction, condition, energy efficiency, heating system and potential maintenance.

If it's a leasehold property, you will also want to understand matters such as the remaining lease term, service charges and ground rent.

A property also needs to be acceptable to your mortgage lender. Some unusual construction types, flats above certain commercial premises, short leases and properties requiring extensive work can require more specialist consideration.

7. Making an Offer

Once you've found a property you want to buy, you can make an offer through the estate agent.

Don't assume that the asking price is automatically the property's value.

Consider comparable properties, the condition of the home, how long it has been marketed and your own maximum budget.

If your offer is accepted, the estate agent will normally ask for details of your solicitor and mortgage arrangements so that the transaction can move forward.

This is when the mortgage process becomes much more property-specific.

8. Choose a Solicitor or Conveyancer

Your solicitor or conveyancer handles the legal side of the purchase.

Their work typically includes investigating the legal title, conducting searches, reviewing contracts, raising enquiries and dealing with the transfer of funds.

If you're using a mortgage, it is important that the solicitor you choose is acceptable to your mortgage lender.

A lender may have a particular panel of solicitors or conveyancers it is prepared to work with.

The cheapest quote isn't necessarily the most appropriate choice. Communication and experience can become extremely important when you're trying to keep a property transaction moving.

9. The Full Mortgage Application

Once your offer has been accepted and an appropriate mortgage has been identified, the full mortgage application can be submitted.

At this stage, the lender may request evidence supporting the information provided.

Depending on your circumstances, this might include:

• Identification

• Proof of address

• Bank statements

• Payslips

• Evidence of your deposit

• Employment information

• Accounts or tax documents if you're self-employed

• Details of existing financial commitments

Every application is different, so the exact documents required will depend on the lender and your circumstances.

This is why having your documents organised early can make the process easier.

See our Documents Needed for a Mortgage guide for a more detailed checklist.

10. The Lender Assesses the Property

The lender also needs to be comfortable with the property being used as security for the mortgage.

A mortgage valuation is primarily for the lender's benefit. Its purpose is to help the lender determine whether the property provides acceptable security for the proposed loan.

This shouldn't automatically be treated as a comprehensive assessment of the property's condition.

Depending on the property and your concerns, you may want to consider arranging your own survey.

This is particularly worth considering with older properties or where you have concerns about condition, alterations or maintenance.

11. Mortgage Offer

If the lender is satisfied with you, the property and the application, it may issue a formal mortgage offer.

This is a significant milestone, but the purchase hasn't completed yet.

Your solicitor still needs to complete the legal work.

You should read your mortgage offer carefully and understand the important terms, including the interest rate, mortgage term, monthly payments, product period, fees and any applicable early repayment charges.

Your mortgage adviser can also take you through the mortgage recommendation and explain why a particular solution has been recommended.

12. Think About Protecting Your New Home

Getting a mortgage is about being able to buy the property.

Protection is about considering what could happen afterwards.

Ask yourself:

What happens to the mortgage if I die?

What happens if I'm diagnosed with a serious illness?

What happens if illness or injury prevents me from working for several months—or longer?

Depending on your circumstances, this may lead to discussions around:

Life Insurance – designed to pay a benefit if the insured person dies during the policy term, subject to the policy terms.

Critical Illness Cover – designed to pay a benefit following diagnosis of a specified critical illness that meets the insurer's definition.

Income Protection – designed to provide an income if illness or injury prevents you from working, subject to the policy terms and underwriting.

Protection isn't simply something to add because you're getting a mortgage. It should be based on your circumstances, existing benefits, budget and what you actually need to protect.

Explore our Protection Advice section for more information.

13. Exchange of Contracts

Exchange is an important legal stage in the home-buying process.

Your solicitor will explain the implications before you proceed.

Once contracts are exchanged, the transaction generally becomes legally binding and a completion date is agreed.

You should make sure any required buildings insurance is arranged at the appropriate point and in accordance with your solicitor's and lender's requirements.

Do not cancel, change or take out financial commitments around this stage without considering whether they could affect your mortgage.

The lender may still perform checks before releasing mortgage funds.

14. Completion Day

This is the day you've been working towards.

Your solicitor arranges for the purchase funds to be transferred. Once completion has taken place and the seller's solicitor confirms receipt, the estate agent can normally release the keys.

You are now a homeowner.

But your relationship with your mortgage shouldn't end there.

Keep your mortgage documentation somewhere safe and make a note of when your current mortgage deal is due to end.

Reviewing your mortgage before the end of a fixed or introductory period can give you time to consider the options available rather than leaving everything until the last minute.

Your First Home Is a Journey, Not Just a Mortgage

There is a lot more to buying your first home than finding an interest rate.

Your deposit, affordability, credit profile, mortgage term, property, solicitor, survey, insurance and protection all form part of the wider process.

You don't need to understand everything before you start.

What matters is understanding each decision before you make it.

At Cambs Ely Mortgages, we help first-time buyers understand the process step by step, from the initial affordability conversation and Agreement in Principle through to mortgage application and completion.

We support first-time buyers in Ely, Cambridge, Cambridgeshire, East Anglia and across England, with appointments available remotely.

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