First time buyer mortgage application process: your step-by-step guide

The first time buyer mortgage application process can feel like a maze of paperwork, jargon, and waiting, especially when you're not sure what happens next. This guide walks through every stage, from checking your credit score right through to collecting the keys, so you know what to expect and when.

Most first-time buyers move from a mortgage in principle to completion in around 12 to 24 weeks, though this varies depending on your circumstances, the property chain, and how quickly your paperwork comes together. This guide is part of our wider first time buyer mortgage series, covering everything from deposits to rates.

In simple terms, the process runs in a set sequence: a lender or broker assesses your finances, you get an agreement in principle, you find a property and submit a full application, the lender values the property and underwrites your application, you receive a formal mortgage offer, and then your solicitor takes you through exchange and completion.

Before you approach a lender, it's worth spending time getting your finances in order. Lenders look closely at your income, regular outgoings, credit history, and how much deposit you have saved, so it helps to know what they'll see before you apply.

Check your credit report with all three UK credit reference agencies - Experian, Equifax, and TransUnion - since lenders can pull data from any of them and the information isn't always identical. Aim to do this around six months before you plan to apply, giving you time to fix any errors or improve your score.

Soft check vs hard check

Checking your own credit report, or getting a mortgage in principle from most lenders, usually only involves a soft check, which doesn't affect your credit score and isn't visible to other lenders. A hard check happens later, when you submit a full mortgage application, and is recorded on your credit file. This is why it's worth doing your homework at the soft-check stage rather than applying to several lenders directly and building up multiple hard searches.

How much can you borrow?

Lenders typically base how much they'll lend on a multiple of your income, alongside a detailed look at your regular spending and any existing debt. Most mainstream lenders lend somewhere in the region of four to four and a half times annual income, though this varies by lender, and some specialist lenders will consider more in certain circumstances. For a clearer picture based on your own circumstances, read our guide on how much can I borrow or speak to an advisor.

Your deposit is the amount you put towards the property yourself, with the mortgage covering the rest. The percentage you put down determines your loan to value (LTV), the size of your mortgage compared with the property's value, and lenders offer different ranges of deals at different LTV tiers.

Most first time buyer mortgages require a minimum 5% deposit, meaning a 95% LTV mortgage. Lenders generally offer a wider choice of deals, and often better terms, to buyers who can put down 10%, 15%, or more, since a bigger deposit reduces the lender's risk.

For example, on a £250,000 property, a 5% deposit is £12,500, while a 10% deposit is £25,000. Saving through a Lifetime ISA, which adds a government bonus on top of your own savings up to certain limits, or a standard cash ISA, are both common routes first-time buyers use to build a deposit.

Gifted deposits

If some or all of your deposit is a gift from family, most lenders will ask for a signed gifted deposit letter confirming the money doesn't need to be repaid and that the person gifting it has no stake in the property. Your solicitor will usually need a copy of this too.

It's also worth checking whether you qualify for any first time buyer schemes, which can reduce the deposit you need or support you in other ways. You may also be eligible for stamp duty relief as a first-time buyer - current thresholds are set out on the government's Stamp Duty Land Tax pages, and it's worth checking these before you budget for completion.

For more detail on how much you might need and ways to build it faster, see our full first time buyer deposit guide.

A mortgage in principle, also called an agreement in principle (AIP) or decision in principle, is a written indication from a lender of roughly how much they might lend you, based on a summary of your income, outgoings, and credit history. It isn't a guarantee of a mortgage offer - the lender still needs to fully assess your application later - but it gives you, and sellers, a good sense of your budget.

Most lenders only run a soft credit check to produce an AIP, so it shouldn't affect your credit score. It's worth confirming this with whichever lender or broker you use, since a small number still carry out a hard check at this stage.

An AIP typically lasts somewhere between 60 and 90 days, depending on the lender, after which you may need to renew it if you haven't yet found a property.

What if your AIP is declined?

If a lender won't offer you an AIP, it doesn't mean you can't get a mortgage - it may simply mean that particular lender's criteria doesn't fit your circumstances. Rather than applying to several lenders one after another, which can result in multiple hard searches if any of them do check your credit, it's worth speaking to an advisor who can point you towards lenders more likely to accept your circumstances first time.

With an agreement in principle in hand, you're in a much stronger position to make an offer. It shows estate agents and sellers that you've already had your finances checked and aren't likely to fall through for lack of funding, which matters in a competitive market.

When you make an offer, it's worth telling the estate agent that you have an AIP in place and roughly when you'd be able to proceed. If your offer is accepted, this is also the point to instruct a solicitor or licensed conveyancer, rather than waiting until your mortgage offer arrives - conveyancing searches can take weeks, and starting early helps keep the whole process moving.

Occasionally a seller accepts a higher offer from someone else after already accepting yours, known as being gazumped. It's an unfortunate risk in England and Wales, where an accepted offer isn't legally binding until contracts are exchanged, but moving quickly to instruct a solicitor and get your application underway reduces the window in which it can happen.

Once your offer is accepted, it's time to submit your full mortgage application. This is a much more detailed process than the AIP, and the lender carries out a hard credit check alongside a full review of your documents.

You'll typically need to provide:

• Your last three months' payslips, or two to three years' SA302s and tax year overviews if you're self-employed
• Your last three to six months' bank statements
• Photo ID, such as a passport or driving licence
• Proof of address, such as a recent utility bill or council tax statement
• Evidence of your deposit source, such as savings statements or a gifted deposit letter
• Your most recent P60

Having these ready before you apply helps avoid delays, since underwriters usually pause your application to request anything missing.

What happens after you submit your application?

Once your application is in, it moves to underwriting, where the lender checks everything in detail: your documents, your credit file, and whether the numbers add up against their lending criteria. Most lenders respond within two to six weeks, though this can take longer for more complex applications, such as self-employed income or unusual property types.

If the underwriter needs more information, respond as quickly as you can - delays in providing extra documents are one of the most common reasons applications take longer than expected.

Once your application is underway, the lender arranges a valuation. It's important to understand that this valuation protects the lender, confirming the property is worth what they're lending against - it isn't a survey of the property's condition, so it won't tell you whether the property is structurally sound.

For that, you can commission your own independent survey, carried out by a RICS-qualified surveyor. This is optional, but strongly recommended, since it can uncover problems that affect the property's value or your decision to proceed, and it's far cheaper to find out before you complete than after.

Once underwriting and the valuation are complete, the lender issues a formal mortgage offer. This document sets out the loan amount, the term, the type of mortgage, and any conditions attached to it.

Mortgage offers are usually valid for somewhere between three and six months, giving you time to complete the purchase before it expires. Before accepting, check the term length, whether there are any early repayment charges, how much you're allowed to overpay each year, and whether any conditions, sometimes called retentions, have been attached - for example, a lender withholding part of the loan until certain repair work is carried out.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it, so it's worth reading the offer carefully and asking your advisor or solicitor to explain anything you're unsure about before you commit.

Your solicitor or licensed conveyancer carries out the legal work behind the purchase: local authority searches, raising enquiries with the seller's solicitor, and checking the title of the property. This stage often takes the longest, typically eight to twelve weeks, and delays here are one of the most common reasons a purchase takes longer than buyers expect.

Once all searches and enquiries are satisfied, you exchange contracts. From this point, the purchase becomes legally binding on both sides, and you'll usually pay a deposit, often 10%, to the seller's solicitor. Completion follows some time later - it could be the same day, or a few weeks after exchange, depending on what's agreed - when the remaining funds transfer and you collect the keys.

Common causes of delay at this stage include a slow property chain, outstanding queries from searches, or missing paperwork from either side. Staying in regular contact with your solicitor and responding to requests quickly helps keep things on track.

Every purchase is different, but the table below gives a general sense of how the first time buyer mortgage application process typically unfolds from start to finish.

These figures are typical ranges rather than guarantees - your own timeline depends on your lender, the property chain, and how quickly documents move between everyone involved.

Having a mortgage application declined is stressful, but it's more common than people think, and it isn't necessarily the end of the road. Common reasons include a low credit score, an affordability shortfall against the lender's criteria, an insufficient deposit, or an issue uncovered during the property valuation.

1. Ask the lender for the specific reason behind the decline - most will tell you if asked.
2. Avoid immediately reapplying with another lender before understanding why, since repeated hard searches in a short space of time can make your credit file look worse.
3. Review your finances and credit report, and address anything that could be improved.
4. Speak to an advisor about specialist lenders that may take a different view of your circumstances, particularly for self-employed income, past credit issues, or unusual property types.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it, so it's always worth taking time to understand exactly what a lender is offering before proceeding with any mortgage, even after a previous decline elsewhere.

If a decline has left you feeling anxious or unsure what to do next, independent guidance is available from MoneyHelper on 0800 138 7777.

You don't have to use a mortgage broker to buy your first home - you can approach lenders directly. But an advisor who is authorised and regulated by the Financial Conduct Authority can compare a wide range of lenders on your behalf, including some that don't deal directly with the public, and can point you towards lenders whose criteria suit your particular circumstances.

Going direct to a single lender means you only see that lender's own range of deals. An advisor who works across a wide range of lenders can widen your options, which matters if your income, deposit, or credit history don't fit a mainstream lender's standard criteria.

You can check any broker's authorisation on the Financial Conduct Authority register before you commit to working with them. It's also worth reading up on current first time buyer mortgage rates so you have a general sense of what's available before you speak to anyone.