Buying your first home is one of the biggest financial decisions you'll ever make. This guide covers everything you need to know — from saving a deposit and understanding mortgage types to navigating the application process and avoiding common pitfalls.
How Much Deposit Do You Need?
The minimum deposit for most mortgage lenders is 5% of the property's purchase price. However, the more you can put down, the better your mortgage rate will typically be.
- • 5% deposit — access to 95% LTV mortgages. Rates are higher but it gets you on the ladder.
- • 10% deposit — noticeably better rates and more lender choice.
- • 15–20% deposit — the best rates and widest choice of products.
Types of Mortgage
Understanding the main mortgage types will help you choose the right product:
- • Fixed rate — your payments stay the same for a set period (usually 2–5 years).
- • Variable rate — your payments can go up or down with interest rates.
- • Tracker — follows the Bank of England base rate plus a set margin.
The Application Process
A typical mortgage application follows these steps: initial consultation, agreement in principle, property search, full application, valuation, mortgage offer, exchange and completion. With a specialist broker, the process is managed for you end to end.
Common Mistakes to Avoid
- • Not getting an agreement in principle before property hunting.
- • Taking on new credit (loans, credit cards) during the application.
- • Forgetting to budget for stamp duty, legal fees and moving costs.
- • Not using a specialist broker — especially for complex cases.