What is mortgage advice?

Mortgage advice is a service provided by qualified professionals who help you find a suitable mortgage product based on your specific financial circumstances and needs.

Why should I use a mortgage adviser?

A mortgage adviser can save you time by researching suitable mortgage options, guide you through the application process, and potentially access mortgage deals not available directly to consumers.

Do I have to pay for mortgage advice?

Many mortgage advisers offer fee-free advice, which means they receive commission from the lender rather than charging you directly. Always check the adviser's fee structure before proceeding.

What information will I need to provide?

You'll typically need to provide details about your income, employment, current debts, credit history, and information about the property you wish to purchase.

How long does the mortgage advice process take?

The initial consultation typically takes between 30 minutes and 1 hour. The entire process from first meeting to mortgage offer can take several weeks depending on complexity.

What's the difference between fee-free advice and no-obligation quotes?

Fee-free advice means the adviser doesn't charge you directly for their service. No-obligation quotes mean you can receive information without committing to proceed with that adviser.

Can a mortgage adviser help with remortgaging?

Yes, a mortgage adviser can help identify suitable remortgage options for your specific and current needs or release equity from your property.

First-Time Buyer Mortgage Guide 2026

1 How much deposit do I need?

The "Deposit" is the cash sum you pay upfront towards the cost of the property. The mortgage covers the rest.

In the current UK market, the minimum deposit is typically 5% of the property value. However, putting down more (10%, 15%, or 20%) gives you access to lower interest rates.

Understanding Loan-to-Value (LTV)

5% Deposit (95% Mortgage) Higher Interest Rates

10% Deposit (90% Mortgage) Standard Rates

15% Deposit (85% Mortgage) Better Rates

Pro Tip: If you are struggling to save a deposit, ask your broker about "Gifted Deposits" (money from family) or "Guarantor Mortgages" (Springboard), as most lenders accept these.

2 How much can I borrow?

Lenders calculate your borrowing power based on your Annual Gross Income (before tax).

The standard cap in the UK is 4.5x your income.

Single Applicant: £30k Salary x 4.5 = £135,000 max loan.
Joint Applicants: (£30k + £28k) x 4.5 = £261,000 max loan.

However, this is not a guarantee. Lenders will deduct regular commitments like student loans, car finance, and credit card balances from your affordability.

Quick Affordability Check

Your Income

Partner's Income

Estimated Borrowing: £135,000

3 The "Hidden" Costs

It’s not just the deposit. You need to save for these upfront costs:

Legal Fees (Conveyancing)

To handle the contracts and money transfer.

£1,000 - £2,000

Survey Fees

To check the building for structural issues.

£400 - £800

Stamp Duty (SDLT)

Tax on land. FTBs usually get relief on this.

£0 (on first £425k)

Broker Fees

To find the deal. Some are free, some charge.

£0 - £500

4 Getting "Mortgage Ready"

Before you apply, you need to prove who you are and how reliable you are with money. Getting this sorted early prevents delays later.

Your Credit Score

Think of this as your "Financial CV". Lenders look at this to decide if they trust you to pay back the loan. A higher score often unlocks lower interest rates.

Warning: Missing a phone bill payment or having an incorrect address on the electoral roll can be enough to get a mortgage rejected.

Recommended

See what lenders see

Download your full credit report from all 3 UK agencies (Equifax, Experian, TransUnion) in one click.

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Try it free for 7 days, then £14.99/mo. Cancel anytime.

ID & Laundering Checks

By law, brokers and lenders must prove you are who you say you are, and that your money hasn't come from criminal activity. This is known as Anti-Money Laundering (AML).

Documents to have ready:

Photo ID Current Passport or Driving Licence. Must be in date.
Proof of Address Utility bill, bank statement, or council tax bill (dated within last 3 months).
Proof of Deposit Bank statements showing the savings building up over time. If it's a gift, you'll need a "Gifted Deposit Letter".

Most checks can now be done digitally via app.

5 The Buying Timeline: Step-by-Step

1. Agreement in Principle (AIP)

Before viewing homes, get an AIP. This is a statement from a lender saying they would, 'in principle', lend you a certain amount.

2. Offer & Application

Once your offer is accepted (Sold Subject to Contract), you formally apply for the mortgage. Your broker will submit your payslips and bank statements.

3. Conveyancing & Surveys

Your solicitor (conveyancer) starts the legal work and property searches. Simultaneously, your lender will conduct a Mortgage Valuation to check the property is good security for the loan.

4. Exchange of Contracts

Point of No Return

Contracts are exchanged between buyer and seller. This is legally binding. You usually pay your deposit (e.g., 10%) to your solicitor now. If you pull out after this, you lose your deposit.

5. Completion (Moving Day!)

This is when your solicitor transfers the remaining money to the seller. You now legally own the property and can pick up the keys.

Quick Jargon Buster

Fixed Rate: Your interest rate stays exactly the same for a set period (usually 2 or 5 years).

Variable/Tracker: Your rate can go up or down depending on the Bank of England Base Rate.

Term: The length of the mortgage (e.g., 25, 30, or 35 years). Longer term = cheaper monthly payments, but more interest overall.

ERC: Early Repayment Charge. A penalty fee if you leave your mortgage deal early.

6 Surveys & EPCs Explained

Energy Performance Certificate (EPC)

An EPC is legally required for any property sold. It gives a ranking from A (Most Efficient) to G (Least Efficient).

Must be provided to you before you buy.
Contains estimated energy costs and recommendations for improvements.
Valid for 10 years.

Do I need a survey?

Important: A "Mortgage Valuation" is for the lender's benefit, not yours. It only checks if the property is worth the money. You should consider your own survey to check for damp, subsidence, or structural issues.

HomeBuyer Report (Level 2)

Suitable for standard modern homes in reasonable condition. Checks for major issues.

Building Survey (Level 3)

For older, larger, or unique properties. A comprehensive analysis of the structure.

7 Mortgage Calculators

Use our specialist tools to get accurate figures for your situation.

Monthly Repayments

Calculate your monthly cost.

Affordability

How much can I borrow?

Stamp Duty

Calculate tax on purchase.

Advanced Calculator

Deep dive into rates & terms.

Self-Employed

Contractor & Director logic.

Hidden Costs

Fees you might expect.

8 Government Help Schemes

If you are struggling to raise a large deposit, there are several government-backed initiatives designed to help First-Time Buyers get on the ladder sooner.

Free Bonus

Lifetime ISA (LISA)

A savings account where the government adds a 25% bonus to whatever you save.

Save up to £4,000 per year.
Gov adds max £1,000 bonus per year.
Must be used for first home (or retirement).

Discounted

First Homes Scheme

Buy a home for 30% to 50% less than its market value. Designed for local first-time buyers and key workers.

Discount stays with the property forever.
Capped at £250k (or £420k in London).
Limited availability on new builds only.

Part Buy / Part Rent

Shared Ownership

You buy a share of the property (between 10% and 75%) and pay rent to a landlord on the rest.

Much smaller deposit required.
You can buy more shares later ("Staircasing").
Property is Leasehold.

95% Mortgages

Mortgage Guarantee Scheme

A government backing that encourages lenders to offer 95% LTV mortgages (meaning you only need a 5% deposit).

Available on pre-owned homes (not just new builds).
Must be a repayment mortgage.
Rates are usually higher than with a 10% deposit.

9 Jargon Buster (Glossary)

Key People

Lender: Able to lend you money to purchase the property.
Conveyancer / Legal Rep: Legal executive or solicitor who does the legal work transferring ownership of land/buildings. They owe a duty to take reasonable care.
Mortgage Broker/Adviser: Able to advise which mortgage is best for you.
Surveyor: Able to assess the physical condition of the property and can give an independent valuation.
Energy Assessor: Able to answer queries on the Energy Performance Certificate (EPC).
Ombudsman: Official organisation appointed to investigate individual’s complaints against a company.

The Process

Decision in Principle: A written statement from a lender to say that ‘in principle’ they would lend a certain amount.
Sold Subject to Contract (SSTC): An offer has been accepted but contracts have not yet exchanged. Not legally binding yet. Also known as "Under Offer".
Exchange of Contracts: When contracts are exchanged. Legally binding and commits parties to the sale.
Completion: When remaining funds are transferred to the seller and you take ownership.
Property Chain: Linked property transactions where a seller of one property is a buyer of another.
Snagging: Defects or unfinished pieces of work in a new build home.

Money & Legal

Equity: The difference between the property’s value and the outstanding debts you owe on it.
Deposit: A payment passed to your legal rep upon exchange, representing a percentage of the price.
Stamp Duty / Land Tax: Tax paid upon purchase of homes costing more than £125k (England) or £180k (Wales), unless FTB relief applies.
Freehold: You own the land and the buildings on it outright.
Leasehold: You own the right to occupy a property for a fixed number of years (typically 99+).
Ground Rent: Annual payment by leaseholder to freeholder. Can increase over time.
Service Charge: Contribution for insuring, maintaining, and cleaning the building (common in flats).
Indemnity Insurance: Insurance used during conveyancing to cover a legal defect that can't be resolved.
Local Authority Searches: Information about the property and local area provided by the council.
Title: A legal document signifying ownership of a property.

Property Details

Fixtures vs Fittings: Fixtures: Fixed items (lights, boiler, radiators).
Fittings: Items not fixed (carpets, curtains, fridges).
Listed Building: A building of special architectural/historic interest. You need special consent to make changes.
Conservation Area: Area with extra planning controls to protect historic elements (windows, doors).
EPC (Energy Performance Certificate): Energy label ranking A-G. Indicates running costs and improvements. Valid for 10 years.