First-time buyer mortgage guide: how to buy a home this Autumn

Buying your first home is an exciting milestone but knowing where to start can feel overwhelming. From saving a deposit and understanding your borrowing power to choosing the right mortgage and navigating the legal process, there is a lot to consider.

If you are hoping to buy your first home this autumn, getting your finances organised early can put you in a stronger position when the right property comes along.

At Dentons Mortgages, we provide independent mortgage advice, helping you understand your options and navigate the process from your initial mortgage assessment through to completion.

Here's our guide to buying your first home this autumn.

1. Work out how much you can afford

Before you start scrolling through property listings, establish a realistic budget.

It can be tempting to base your budget on the maximum amount a lender may be prepared to offer. However, the amount you can technically borrow isn't necessarily the amount you should borrow.

Consider your monthly income and regular expenditure, including:

• Mortgage repayments
• Council tax
• Energy and household bills
• Insurance
• Travel and commuting costs
• Food and other essential spending
• Credit cards, loans or other financial commitments
• Maintenance and other costs associated with owning a property

It's also worth allowing some room in your budget for unexpected expenses. Your first home should be affordable not only on completion day, but over the longer term.

A mortgage adviser can assess your circumstances and help you understand what you could potentially borrow and what your repayments might look like.

2. Save your deposit

For many first-time buyers, the deposit is one of the biggest hurdles to getting onto the property ladder.

A deposit of 5% may be enough for some mortgage products, although having a larger deposit can potentially give you access to a wider range of mortgage options and lower loan-to-value bands. 

Don't forget that your deposit isn't the only upfront cost. You may also need to budget for legal fees, surveys, mortgage-related costs, moving expenses and any immediate work needed on the property.

Could a Lifetime ISA help?

If you are eligible, a Lifetime ISA (LISA) can be another way to build your deposit. You can contribute up to £4,000 each tax year and receive a 25% government bonus, up to £1,000 a year. 

There are specific rules around using a LISA for a first home, including a requirement that the account has been open for at least 12 months and that the property purchase meets the relevant criteria.

If you are planning to use a LISA towards your deposit, make sure your solicitor and mortgage adviser know early in the process.

3. Get your finances mortgage-ready

Your financial circumstances are an important part of a mortgage application, so it's worth getting organised before you apply.

Lenders may ask for documents such as:

• Proof of identity
• Proof of address
• Payslips or other evidence of income
• Bank statements
• Details of existing credit commitments
• Evidence of your deposit
• P60s and other employment information where required

If you are self-employed, a lender will also request accounts and tax information.

Try to avoid taking on unnecessary new credit or making significant financial changes immediately before or during your mortgage application without discussing them with your adviser.

Being prepared can make the application process much smoother.

4. Speak to a mortgage adviser before house hunting

One of the most useful steps you can take as a first-time buyer is to speak to a mortgage adviser before you start making offers.

At Dentons Mortgages, we can look at your individual circumstances, discuss your budget and explore mortgage options from a range of lenders.

We can then help you obtain an Agreement in Principle (AIP), sometimes called a Mortgage in Principle or Decision in Principle.

An AIP provides an indication of how much a lender may be prepared to lend. It isn't a formal mortgage offer or guarantee, but it can give you a clearer idea of your potential budget. 

Having an AIP can also demonstrate to an estate agent that you have taken steps to arrange your finance when you're ready to make an offer.

5. Start your autumn property search

Once you understand your budget, you can start looking for your new home.

It's easy to focus purely on the asking price but remember to consider the wider costs and practicalities of each property.

Think about:

• Location and commuting
• Council tax
• Energy efficiency
• Leasehold or freehold status
• Service charges and ground rent, where applicable
• Potential maintenance or renovation costs
• Local amenities
• Parking and transport links
• How suitable the property will be if your circumstances change

Try not to stretch your budget simply because you find a property you love. Knowing your maximum comfortable budget before you start viewing can help you make decisions with greater confidence.

6. Make an offer

When you find the right property, you'll usually make your offer through the estate agent.
Your AIP, deposit and overall financial position can help demonstrate that you are a serious buyer.

Remember that an accepted offer isn't normally legally binding in England and Wales until contracts have been exchanged. This means there are still important steps to complete, including your formal mortgage application, property searches and legal work.

7. Submit your full mortgage application

Once your offer has been accepted, your mortgage adviser can help you move from your AIP to a full mortgage application.

The lender will assess your financial circumstances in greater detail and will usually arrange a valuation of the property.

It's important to respond promptly to requests for documents or additional information. Delays in providing paperwork can slow down the mortgage process.

At Dentons Mortgages, we can help guide you through the application and keep you informed as your purchase progresses.

8. Don't confuse a mortgage valuation with a survey

A lender's valuation is primarily designed to establish whether the property provides suitable security for the mortgage. It isn't the same as a property survey and carried out purely for lending purposes only.

Depending on the property, you may wish to arrange an independent survey to identify potential issues such as structural problems, damp or other defects.

For a first-time buyer, a survey can provide useful information before you become legally committed to the purchase.

9. Receive your mortgage offer

If the lender is happy with your application and the property, they will issue a formal mortgage offer, which is normally valid for up to 6 months. If you are buying a New Built property, some could even go up to 12 months validity subject to status.

Your solicitor or conveyancer will also continue with the legal work, including property searches, reviewing the contract and raising enquiries with the seller's solicitor.
This stage can take time, particularly if there are issues with the property or a chain is involved.

Keeping communication flowing between your mortgage adviser, solicitor, estate agent and lender can help keep everything moving.

10. Exchange contracts and complete

Exchange of contracts is a major milestone. Once contracts have been exchanged, the purchase becomes legally binding and a completion date is agreed.

On completion day, the remaining purchase funds are transferred to the seller. Once your solicitor confirms completion, you can collect the keys and officially become a homeowner.

After all the paperwork, viewings and mortgage applications, this is the moment you've been waiting for.

What about mortgage rates this autumn?

Mortgage rates can change regularly, and the rate available to you will depend on factors such as your deposit, loan-to-value ratio, income, credit history, property and the lender's criteria.

There are also different types of mortgage to consider, including fixed-rate and tracker mortgages.

A fixed-rate mortgage can provide certainty because your mortgage rate is fixed for an agreed period. A tracker mortgage normally follows the Bank of England Base Rate, meaning your payments can change when the underlying rate changes.

There isn't a single mortgage type that is right for every first-time buyer. Your circumstances, budget and attitude towards changes in monthly payments all matter.

The mortgage market can also move quickly, which is why comparing the options available when you're ready to buy is important.

A first-time buyer checklist for autumn

If you are hoping to buy your first home this autumn, consider working through this checklist:

• Check your finances: understand your income, expenditure and existing commitments.
• Set a realistic budget: don't simply work from the maximum a lender might offer.
• Build your deposit: and remember to budget for additional purchase costs.
• Check your savings options: including whether a Lifetime ISA could be relevant to you.
• Speak to a mortgage adviser: ideally before you start making offers.
• Obtain an Agreement in Principle: giving you an indication of your potential borrowing capacity.
• Start viewing properties: keeping your budget and long-term needs in mind.
• Make an offer: once you've found a property that works for you.
• Submit your mortgage application: with the necessary documentation ready.
• Arrange a survey: where appropriate.
• Instruct a solicitor or conveyancer: to handle the legal side of the purchase.
• Exchange contracts: once the legal work and mortgage are ready.
• Complete and collect your keys: then start enjoying your new home.

How Dentons Mortgages can help first-time buyers

Buying your first home doesn't have to mean navigating the mortgage process alone.

At Dentons Mortgages, we provide independent mortgage advice and a personal service designed to help first-time buyers understand their options. We work with a wide range of lenders and can help you navigate the process from understanding your borrowing potential and obtaining an Agreement in Principle through to your formal mortgage application and offer. 

We can also help you understand the different mortgage options available and discuss how you could protect your mortgage and income against unexpected circumstances.

Whether you're just starting to save or you've already found your dream home, speaking to a mortgage adviser early can help you understand what's possible.

Ready to start your first-time buyer journey?

Autumn can be an exciting time to start looking for your first home. The key is to prepare before you find the property you want.

Understanding your budget, organising your deposit and getting your mortgage options in place can put you in a much stronger position when you're ready to make an offer.

If you're thinking about buying your first home, Dentons Mortgages can help you understand your mortgage options and guide you through the process from start to finish.

Any information contained in this article is for general information only and does not constitute financial advice. It is essential that you seek independent advice from a qualified mortgage adviser.