The Complete Guide to Getting Your First Mortgage in 2025

Taking that first step onto the property ladder is one of life’s most exciting milestones. But if you’re a first-time buyer, the mortgage process can feel overwhelming. Where do you start? How much can you borrow? What documents do you need? Don’t worry – we’re here to guide you through everything you need to know about securing your first mortgage in 2025.

Understanding Your Budget

Before you fall in love with a property, it’s crucial to understand what you can afford. This is where speaking to experienced mortgage advisors makes all the difference. We’ll assess your income and outgoings to work out a sensible budget that won’t stretch you too thin.

Lenders typically offer mortgages between 4 and 5.5 times your annual income, though this varies based on your circumstances. For example, if you earn £30,000 per year, you might be able to borrow between £120,000 and £165,000. Remember, you’ll also need to save for your deposit – most lenders require at least 5-10% of the property value, though a larger deposit often secures better interest rates.

Getting Your Documents Ready

Preparation is key when it comes to mortgage advice for first-time buyers. You’ll need to gather several important documents:

• Recent payslips (usually three months’ worth)
• Bank statements from the past three to six months
• Proof of deposit and where the funds came from
• Proof of identity (passport or driving licence)
• Proof of address (utility bills or council tax statements)

If you’re self-employed, you’ll need SA302 forms from the last two to three years, along with corresponding tax year overviews. Don’t worry if this sounds complicated – our team will guide you through exactly what you need.

The Agreement in Principle

Before you start seriously house hunting, we’ll help you secure an Agreement in Principle (AIP), sometimes called a Decision in Principle. This is a statement from a lender indicating how much they’d be willing to lend you, based on a soft credit check and basic information about your finances.

Having an AIP in your back pocket shows estate agents and sellers that you’re a serious buyer. It’s particularly valuable for first-time buyers, as you’re not in a property chain – making you an attractive prospect for sellers who want a quick, smooth sale.

Understanding the Costs Beyond Your Deposit

Many first-time buyers are surprised by the additional costs involved in purchasing a home. Here’s what you need to budget for:

In England and Northern Ireland, first-time buyers pay no Stamp Duty Land Tax (SDLT) on properties valued up to £300,000. For properties between £300,001 and £500,000, a rate of 5% is charged on the portion above £300,000. No first-time buyer relief is available for properties over £500,000

Survey Fees: While not mandatory, a property survey (typically £400-£1,500) can save you thousands by identifying potential issues.

Solicitor Fees: Legal work for conveyancing usually costs between £500 and £1,500.

Valuation Fees: Your lender will want to value the property, which typically costs £250-£1,500 depending on the property value.

Moving Costs: Don’t forget removal vans, van hire, or professional movers.

Finding the Right Mortgage Product

The mortgage market changes constantly, with new deals appearing regularly. This is where working with local mortgage advisors who compare the whole market becomes invaluable. We can access exclusive rates not available directly from high street lenders and find products tailored to your specific circumstances.

There are two main types of mortgage to consider:

Fixed-Rate Mortgages: Your interest rate stays the same for a set period (typically 2, 3, 5, or 10 years), giving you certainty over your monthly payments.

Variable-Rate Mortgages: Your rate can go up or down, usually tracking the Bank of England base rate. These can be cheaper initially but carry more risk.

The Application Process

Once you’ve found your dream home and had an offer accepted, it’s time for the full mortgage application. We’ll submit all your supporting documents and property details to the lender. They’ll conduct a full credit check and property valuation before making a formal offer.

Your solicitor will then handle all the legal work, including property searches and contract exchange. Throughout this process, our team coordinates with everyone involved – estate agents, solicitors, and lenders – to ensure everything runs smoothly.

Protection for Your Future

While focusing on your mortgage, it’s worth considering protection products. Life insurance and critical illness cover ensure your mortgage payments are protected if something unexpected happens. These policies are often surprisingly affordable for young, healthy first-time buyers.

Ready to Take the Next Step?

Getting your first mortgage doesn’t have to be stressful. With expert guidance from experienced advisors who understand the market inside out, you’ll be collecting your keys before you know it. The team at Akers Pritchett has helped hundreds of first-time buyers in Nottingham, Derby, and Leicester navigate their way onto the property ladder.

Get in touch with us today to start your journey toward homeownership. We’ll explain everything in plain English, find you the best rates available, and support you every step of the way.

Frequently Asked Questions

How much deposit do I need as a first-time buyer in 2025?

Most lenders require a minimum deposit of 5-10% of the property value, though putting down 15-20% typically gives you access to better interest rates and more mortgage products. Some government schemes, like shared ownership, may allow smaller deposits in certain circumstances. We can help you explore all your options based on what you’ve saved.

How long does it take to get a mortgage as a first-time buyer?

From initial application to completion, the process typically takes 8-12 weeks, though it can be faster or slower depending on your circumstances and the property chain. Getting your documents ready early and working with experienced mortgage advisors can significantly speed things up. We’ll keep you updated throughout the process so you always know what’s happening.

Will being a first-time buyer affect my chances of getting a mortgage?

Actually, being a first-time buyer can work in your favour! Sellers often prefer first-time buyers because you’re not in a property chain, which reduces the risk of the sale falling through. While you might not have a property history, lenders have specific products designed for first-time buyers, and we specialise in finding the best deals for people in your position.

 

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