Mortgage Application UK 2026 — Step-by-Step Guide from AIP to CompletionHow to Apply for a Mortgage as a First-Time Buyer
Step-by-step mortgage application guide for first-time buyers. What you need, the process, and how to improve your chances of approval.
A complete guide to the mortgage application process for first-time buyers.
For the wider cluster covering deposit planning, affordability, first-time-buyer schemes and total buying costs, use the main First-Time Buyers hub.
Before You Apply
Preparation Timeline
| When | Action |
|---|
| 6+ months before | Check credit, save more deposit |
| 3 months before | Gather documents, get AIP |
| Property found | Full application |
| Ongoing | Respond quickly to requests |
Affordability Check
| What Lenders Assess | Details |
|---|
| Income | Base, bonuses, overtime |
| Outgoings | Debts, commitments |
| Credit history | Past behaviour |
| Deposit size | Affects LTV |
| Stress test | Can you pay at higher rates? |
Step 1: Check Your Credit
What to Do
| Action | Why |
|---|
| Check all 3 reports | Experian, Equifax, TransUnion |
| Fix any errors | Dispute incorrect info |
| Register to vote | Helps verification |
| Reduce existing debt | Lowers commitments |
Red Flags for Lenders
| Issue | Impact |
|---|
| Missed payments | Major concern |
| CCJs/defaults | Serious problem |
| Too many applications | Looks desperate |
| Gambling transactions | Some lenders check |
| Payday loans | History matters |
Step 2: Calculate What You Can Borrow
Typical Multiples
| Income Multiple | Example |
|---|
| 4-4.5× salary | Standard |
| Up to 5× | Some lenders |
| Up to 5.5× | Professionals |
Example
| Your Salary | Can Borrow (4.5×) |
|---|
| £30,000 | £135,000 |
| £40,000 | £180,000 |
| £50,000 | £225,000 |
| £60,000 | £270,000 |
Joint Mortgages
| Combined Salary | Can Borrow (4.5×) |
|---|
| £50,000 | £225,000 |
| £60,000 | £270,000 |
| £80,000 | £360,000 |
Step 3: Save Your Deposit
Deposit vs LTV
| Deposit | LTV | Rate Impact |
|---|
| 5% | 95% | Highest rates |
| 10% | 90% | Better rates |
| 15% | 85% | Good rates |
| 20%+ | 80% or less | Best rates |
Sources of Deposit
| Source | Accepted? |
|---|
| Personal savings | Yes |
| Gift from family | Yes (with letter) |
| Inheritance | Yes (with proof) |
| Lifetime ISA bonus | Yes |
| Personal loan | Generally no |
Gift Deposits
| Required | From Gifter |
|---|
| Gift letter | Confirming no repayment |
| ID | Proof of identity |
| Source of funds | How they got money |
| Bank statements | Sometimes |
Step 4: Get an Agreement in Principle
What AIP Is
| Feature | Details |
|---|
| Also called | Decision in Principle, Mortgage Promise |
| Shows | What you could borrow |
| Not | A guarantee |
| Duration | Usually 30-90 days |
How to Get AIP
| Step | Action |
|---|
| 1 | Choose lender/broker |
| 2 | Provide basic details |
| 3 | Soft credit check |
| 4 | Receive AIP certificate |
Benefits of AIP
| Benefit | Why |
|---|
| Know your budget | Realistic house hunting |
| Estate agents | Take you seriously |
| Sellers | Confident you can proceed |
| Speed | Faster when you find property |
Step 5: Choose a Mortgage
Mortgage Types
| Type | Features |
|---|
| Fixed rate | Set rate for 2-5+ years |
| Tracker | Follows base rate |
| Variable | Lender can change |
What to Compare
| Factor | Consider |
|---|
| Interest rate | Lower is better |
| Fees | Product fee, booking fee |
| Term | 25-40 years |
| Early repayment charges | If you might move |
| Overpayment options | Flexibility |
Using a Broker
| Pros | Cons |
|---|
| Whole market access | May charge fee |
| Expert guidance | Not always independent |
| Handle paperwork | Still need documents |
| Often free | Some charge |
Step 6: Full Application
Documents Needed
| Document | Purpose |
|---|
| Passport/driving licence | ID verification |
| Utility bills | Address proof |
| Last 3 months’ payslips | Income evidence |
| Last 3 months’ bank statements | Spending patterns |
| P60 | Annual income |
| Proof of deposit | Savings statements |
| Gift letter | If applicable |
| Document | Purpose |
|---|
| 2-3 years’ accounts | Income evidence |
| SA302 | Tax calculations |
| Tax year overviews | HMRC verification |
| Accountant reference | Sometimes |
The Process
| Stage | Timeframe |
|---|
| Submit application | Day 1 |
| Initial assessment | 1-3 days |
| Valuation arranged | 1-2 weeks |
| Underwriting | 1-2 weeks |
| Mortgage offer | 2-4 weeks total |
Step 7: Property Valuation
Types of Valuation
| Type | Purpose |
|---|
| Basic valuation | Lender’s check |
| Homebuyer report | Medium survey |
| Full survey | Comprehensive |
What Lender Checks
| Assessment | Looking For |
|---|
| Property value | Worth the loan |
| Condition | Structurally sound |
| Legal issues | Lease length, etc |
Valuation Issues
| Problem | Impact |
|---|
| Down-valued | May need more deposit |
| Unmortgageable | Can’t proceed |
| Queries | Delay for answers |
Step 8: Mortgage Offer
What It Contains
| Section | Details |
|---|
| Loan amount | What you’re borrowing |
| Interest rate | Your rate |
| Monthly payment | What you’ll pay |
| Term | How long |
| Conditions | What must happen |
Offer Duration
| Typical | 3-6 months |
|---|
| Can extend | Sometimes |
| May expire | If completion delayed |
Step 9: Exchange and Complete
The Final Steps
| Stage | What Happens |
|---|
| Solicitor completes searches | Legal checks |
| Exchange contracts | Legally committed |
| Deposit paid | Usually 10% |
| Completion | Keys handed over |
| Mortgage starts | Repayments begin |
Timeline
| Stage | Typical Time |
|---|
| Offer to exchange | 4-8 weeks |
| Exchange to completion | 1-4 weeks |
| Total process | 8-16 weeks |
| First payment | Month after completion |
Common Problems
Application Issues
| Problem | Solution |
|---|
| Not enough income | Joint application, smaller property |
| Credit issues | Improve score, specialist lender |
| Complex income | Use broker |
| Low deposit | Save more, family help |
During Process
| Problem | Solution |
|---|
| Down-valuation | Renegotiate, find more deposit |
| Survey issues | Renegotiate price |
| Chain delays | Stay in contact |
| Document requests | Respond quickly |
First-Time Buyer Benefits
Stamp Duty Relief
First-time buyers in England and Northern Ireland pay no SDLT on the first £300,000 and 5% on the rest up to £500,000, but only if the price is £500,000 or less and every buyer is a first-time buyer who will live there as their only or main home. (Who qualifies.)
Example
| £500,000 home, first-time buyer | Calculation |
|---|
| First £300,000 | £0 |
| The remaining £200,000 at 5% | £10,000 |
| Total stamp duty | £10,000 |
Lifetime ISA
| Benefit | Details |
|---|
| 25% bonus | On up to £4,000/year |
| Max bonus | £1,000/year |
| Property limit | Under £450,000 |
| Use for | Deposit |
Summary Checklist
| Stage | Complete |
|---|
| ☐ Check credit reports | |
| ☐ Calculate budget | |
| ☐ Save deposit | |
| ☐ Get AIP | |
| ☐ Find property | |
| ☐ Full application | |
| ☐ Valuation | |
| ☐ Mortgage offer | |
| ☐ Exchange | |
| ☐ Complete | |
| Documents Ready | ✓ |
|---|
| ID | |
| Address proof | |
| Payslips (3 months) | |
| Bank statements (3 months) | |
| P60 | |
| Deposit proof | |
| Gift letter (if needed) | |
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Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance, not financial advice. Seek independent mortgage advice before making decisions about borrowing.