FIRST TIME BUYER

Take The First Step To Buying Your First Home

Buying your first home is exciting, but it can feel overwhelming too, with a lot of decisions and unfamiliar terms to get your head around. Our team of first time buyer mortgage advisors will guide you through every step, from working out what you can afford to picking up the keys.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What is a Decision in Principle, and how much can you borrow?

Before you start viewing properties, it’s worth getting what’s called a Decision in Principle. You might also hear it called an Agreement in Principle or Mortgage in Principle, they all mean the same thing. It’s a statement from a lender showing roughly how much they’d be willing to lend you, based on your income and outgoings. It isn’t a guaranteed offer, but it tells you, and any sellers, that you’re a serious, ready buyer.

How much you can actually borrow as a first time buyer depends on your income, outgoings, deposit size, and credit history. Lenders vary quite a bit here, so rather than relying on a rough rule of thumb, we’ll run your actual numbers and tell you honestly what’s realistic for your situation.

Be realistic about what you can afford

Work out exactly how much you can comfortably spend on your new home, not just what a lender says you can borrow. Do a proper budget calculation, and factor in the extras beyond the purchase price too, things like conveyancing, stamp duty, and any work the property might need. Even a newly built house will need furnishing, and older properties can come with extensive jobs like re-flooring, re-tiling, or rewiring. Getting your Decision in Principle early helps here too, since it gives you a clear number to plan around before you fall in love with a property that’s a stretch.

Get some experienced eyes on the property

When you’re buying for the first time, it’s easy to miss details in a house that an experienced buyer would spot straight away. Where you can, take someone along who’s bought before, a parent, or a friend who owns their own home. If that’s not possible, make sure you get some assistance once you’ve found a property you like and are arranging a second viewing. It’s always worth asking when the boiler was last serviced too. If it’s been a while, your conveyancer can request a certified boiler service check before contracts are exchanged.

Improving your credit score

Register on the electoral roll. If your name isn't there, some banks and building societies won't consider you. You can register online or by post.
Check your credit file for mistakes. Even a slightly wrong address can affect your score, so check the details and report anything incorrect straight away.
Check for fraudulent activity If something on your credit report is incorrect or doesn’t apply to you, i.e. if someone applied for credit in your name without your knowledge, contact the credit reference agency immediately to have your file updated.
Watch for fraudulent activity. If something on your file doesn't look right, for example credit applied for in your name without your knowledge, contact the credit reference agency immediately.

Check if you're financially linked to someone else. A joint account with a partner, friend, or family member means their credit rating can affect yours.
Keep existing debt as low as you can. Lenders can be more cautious about offering further credit if you already owe a lot elsewhere.
Be aware of County Court Judgements. A CCJ for unpaid debt can seriously affect your score. If you're struggling with payments, free debt advice is available online.
Try to stay at one address for a while. Lenders tend to feel more confident when they can see a stable address history.

If you’re struggling to improve your score, get in touch. We’re happy to talk through your options and what might help in your situation.

What's actually in your credit file

Every credit reference agency holds slightly different information, so it’s worth checking more than one for the full picture. In general, your file will include:

Your name, address, and date of birth
Search footprints, such as previous credit applications
Financial links to other people, for example a joint loan or bank account
Any late or missed payments, or defaults
How much you currently owe to lenders
Any County Court Judgements against you not paid in full within one month of the notice
Whether you’re on the electoral register at your current address
Whether you’ve been declared bankrupt or entered into an IVA (Individual Voluntary Arrangement)

It won’t include your salary, student loans, or criminal record, though you will be asked for these separately when you apply for a mortgage.

First time buyer questions we get asked a lot

How do I get a mortgage as a first time buyer?

Start by getting a Decision in Principle so you know what you can likely borrow, then get your deposit and paperwork together (proof of income, bank statements, ID). Once you’ve found a property, we’ll help you put together the full application and guide you through to completion.

How much can I borrow as a first time buyer?

It depends on your income, outgoings, credit history, and deposit. Lenders each calculate this differently, so rather than guessing from a generic multiple, we’ll work out your actual borrowing power based on your circumstances.

How much deposit do I need as a first time buyer?

Most lenders ask for at least 5% of the property’s value, though a bigger deposit usually gets you access to better rates. We’ll talk through what’s realistic for your savings and the schemes that might help you get there sooner.

What is an agreement in principle?

It’s a lender’s estimate of how much they might lend you, based on your income and a soft credit check. It’s also called a Decision in Principle or Mortgage in Principle. It isn’t a guaranteed mortgage offer, but it strengthens your position when you’re viewing properties and making offers.

Do I need a mortgage broker as a first time buyer?

You don’t have to use one, but going whole-of-market means we can compare deals across lenders rather than just what a single bank offers you directly. For a first time buyer especially, having someone explain the process and check you’re getting a suitable deal tends to make the whole experience less stressful.

What credit score do I need for a mortgage?

There’s no single number every lender uses, and each has its own criteria. Rather than chasing a specific score, focus on the basics, registering to vote, paying bills on time, and keeping existing debt manageable. We can also point you toward lenders more likely to suit your circumstances.

Ready to take your first step?