What is a First Time Buyer Mortgage?
A first-time buyer mortgage is designed for anyone buying their first home. It often comes with benefits like lower deposit requirements, flexible lending criteria, and additional incentives to help you take your first step onto the property ladder.
Whether you’re saving for a deposit or curious about what you can borrow, we’re here to guide you.
Check what you can afford - Use our Mortgage Affordability Calculator.
What is a Mortgage in Principle (MIP) or Agreement in Principle (AIP)?
A Mortgage in Principle (MIP), also known as an Agreement in Principle (AIP), is a document from a lender that provides an initial indication of how much they might be willing to lend you. It’s not a full mortgage offer but a crucial first step in your home-buying journey.
Here’s why an MIP/AIP is important for first-time buyers:
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Shows You Are a Serious Buyer: Estate agents often require an MIP/AIP before accepting your offer on a property.
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Clarifies Your Budget: It helps you understand how much you could borrow and keeps your property search realistic.
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Strengthens Your Offer: Sellers are more likely to accept your offer knowing you have preliminary approval from a lender.
An MIP/AIP is typically valid for 30 to 90 days, giving you time to find the perfect home.
Why Use a Mortgage Broker for Your First Time Buyer Mortgage?
6 Benefits of Using a Mortgage Broker
Expert Guidance
Mortgage brokers specialize in navigating the mortgage process, helping first-time buyers understand options, terms, and requirements without jargon. Their expertise makes the journey smoother and less stressful.
Help with Complex Applications
If you have unique circumstances, such as being self-employed or having a low credit score, a broker can identify lenders with flexible criteria and advocate on your behalf.
Access to More Lenders
Unlike banks, brokers have access to a wide range of lenders and exclusive deals. This increases the likelihood of finding a mortgage tailored to your specific needs and circumstances.
Personalized Advice
Brokers offer tailored recommendations based on your financial situation, long-term goals, and preferences, ensuring you choose the best mortgage for your needs.
Save Time and Effort
A broker does the heavy lifting for you, comparing mortgage products, handling paperwork, and managing lender communication, saving you time and reducing hassle.
Better Mortgage Rates
Mortgage brokers often have access to exclusive rates and deals that aren’t available directly to the public, helping you secure a more affordable mortgage.
Document Checklist for First Time Buyer Mortgage
1. Proof of Identity
Mortgage lenders need to verify your identity. Ensure you have one of the following:
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Passport (valid and up to date)
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Driving license (with current address)
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National ID card (if applicable)
2. Proof of Address
Lenders will also need to confirm your current residence. Provide at least two of the following documents:
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Utility bills (dated within the last 3 months)
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Council tax statement
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Recent bank or credit card statement
3. Proof of Income
Your income demonstrates your ability to afford mortgage repayments. Requirements vary depending on your employment type:
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Employed Applicants:
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Last 3 months’ payslips
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Latest P60
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Employment contract (if recently started a new job)
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Self-Employed Applicants:
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Last 2-3 years’ tax returns (SA302 forms)
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Recent bank statements showing income deposits
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Accountant-prepared financial statements
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4. Bank Statements
Provide the last 3-6 months of bank statements to give lenders insight into your spending habits, income, and savings. These statements should:
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Show your name and account details
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Highlight consistent income deposits
5. Proof of Deposit
Lenders need evidence of your mortgage deposit, whether it’s savings, a gift, or a bonus. Acceptable proof includes:
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Savings and/or investment account statements
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Lifetime ISA statement (if applicable)
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Gift letter (if deposit is gifted)
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Bonus payment slips
6. Credit History
Lenders will check your credit score and history to assess your financial responsibility.
7. Additional Documents
Depending on your circumstances, lenders might ask for:
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Proof of additional income (e.g., second job, dividends)
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Debt repayment plans (if applicable)
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ID verification for anyone contributing to your deposit
8. Conveyancer Details
You will need to provide your conveyancer's detail when applying a mortgage. Find your conveyancer here.
