First Time Buyer (FTB)
Making the decision to buy your first home is a real exciting experience, but it can also be very daunting. Stepping onto the property ladder for the first time can be like entering into a labyrinth of procedures and terms that you were not expecting nor understand.
Read up on the current first-time-buyer government incentive schemes
The current schemes include the Help-To-Buy Incentive and the First Home Shared Equity Scheme. These schemes may be used to bridge the gap between the cost of the chosen property and the amount of mortgage you can borrow. This is a key first step for first-time buyers.
Head to your local mortgage broker, or research mortgage lenders
Before you start looking for your dream property it is prudent to work out what you can afford. Meeting your local mortgage broker will give you this information. Before you meet, be sure to have your financial information written down. The broker will need to know your salary and that of your partner if you plan on buying a home together, and your full employment status — full time, part time, temporary, permanent. Know your savings balance and what you have available to use as a deposit. The broker will then be able to tell you the likely amount of mortgage you can apply for.
See this link, which outlines the parameters for the amount of mortgage you can borrow.
Decide on the mortgage lender and complete your loan application
Once the mortgage broker goes through the different lender options, they will guide you to the most suitable lender based on your preferences. You might want a variable rate, which means the interest rate rises and falls with the market; or you might prefer a fixed rate, so you know exactly what you will pay every month for the next five years. Each lender offers different interest rate options. When you start repaying your mortgage, each monthly payment is made up of capital and interest — the capital reduces the amount you borrowed, the interest is the lender’s fee for facilitating the mortgage.
In the early years the monthly repayments are mainly interest, with a small part reducing your original borrowing. As the borrowing reduces, the interest becomes less, so more of each repayment goes towards reducing the borrowing.
Once you decide which lender to apply to, the broker will help you complete the application. At this stage you will need the supporting documentation: payslips, a letter from your employer, anti-money-laundering (“AML”) documents and so on.
Agree on a solicitor and engage their services
The earlier you engage your solicitor, the faster the legal process will be. Just as with the mortgage application, you will need to gather documentation for the solicitor, which can take time.
With Jacob Law you can be sure you will not pay over the odds for your legal process. As a first-time buyer it is important to keep your costs to a minimum, and we stay with you through the entire legal process.
In most cases you will not have to pay any fees until the purchase is complete, so it makes sense to start the solicitor engagement as soon as you can. The earlier you engage your solicitor, the smoother and faster the legal process.
Get your mortgage in principle from your lender
Once the lender has approved your application, you obtain a mortgage in principle. This means the lender is confirming it will give you the agreed mortgage amount, and it allows you to press ahead with your property search.
Start actively looking for a property
There is currently a shortage of properties, so there are more buyers in the market than sellers. You are competing against a lot of other buyers, so you need to be in a position to act fast when you find your desired home — which is why having the mortgage in principle in place is imperative. As a first-time buyer this will be your first bidding process too, and preparation is key. Telling the estate agent you have a mortgage in principle in place is an advantage.
Think with your head and not with your heart if you fall for a house during a viewing. Hide your excitement and resist making an offer on the spot. Go back over your finances overnight and study the asking price. If it still looks promising, make your bid. To show the estate agent you are serious, ask whether you can arrange a surveyor to inspect the property, and tell them your solicitor is in place.
Engage a surveyor (second-hand properties) or a snagger (new builds)
Engaging a surveyor or snagger is important because they:
- Spot hidden issues like structural problems, damp, or roof defects.
- Protect your investment by helping you avoid costly repairs or renegotiate the price.
- Check boundaries and legal matters to prevent disputes.
- Flag planning or building regulation breaches.
- Provide peace of mind with a clear picture of the property’s condition.
They are essentially your property detective, catching problems before they become yours.
FAQ: What is the difference between the mortgage broker and the mortgage lender?
The mortgage broker is the person who will give you all the different mortgage options available and can explain what the current mortgage lenders are offering first time buyers. The mortgage lender is the actual bank or lender that you end up borrowing from. Basically, the mortgage broker helps you chose a mortgage lender and then guides you through the mortgage application process.
New Build Property Purchase Information Booklet
New-Build Property Purchase Guide
Frequently asked questions
What’s the first step as a first-time buyer?
Read up on the current schemes (Help to Buy and the First Home Scheme), which can bridge the gap between your deposit-plus-mortgage and the price of the home.
How do I find out how much I can borrow?
Speak to a mortgage broker (or research lenders) with your salary, employment status, savings and deposit to hand; they’ll tell you the likely mortgage amount you can apply for.
What’s the difference between a mortgage broker and a lender?
The broker sets out the options and guides your application; the lender is the bank you actually borrow from.
What is a mortgage ‘in principle’ and why do I need it?
It’s the lender confirming it will give you the agreed amount, so you can search and bid with confidence — an advantage when you tell an estate agent you have it.
Do I need a surveyor or a snagger?
Yes — a surveyor for second-hand homes, a snagger for new builds. They spot hidden issues, protect your investment, and flag boundary or planning problems.
When should I engage a solicitor as a first-time buyer?
Early. The sooner you engage one, the faster the legal process, and in most cases you won’t pay fees until the purchase completes.
