Mortgages Made Simple: A First-Time Buyer’s Guide

Buying your first home is a huge milestone, but it’s natural to feel overwhelmed by the mortgage process. Understanding how mortgages work, what’s expected of you, and the steps involved can make the experience far smoother. At Mortgage Pro Sussex, we specialise in guiding first-time buyers through every stage, ensuring you secure the right mortgage for your needs.

In this guide, we’ll walk you through the mortgage process explained clearly, breaking it down step by step so you know exactly what to expect.

1. Understanding Mortgages: The Basics

A mortgage is essentially a loan specifically used to purchase a property. The lender provides you with funds to buy your home, and you repay the loan over an agreed term (typically 25-35 years) with added interest.

There are various types of mortgages available:

  • Fixed-rate mortgages – The interest rate stays the same for a set period.
  • Variable-rate mortgages – Interest rates can fluctuate.
  • Tracker mortgages – Linked to the Bank of England’s base rate.
  • Help to Buy & Shared Ownership schemes – Specifically tailored for first-time buyers.

Choosing the right one depends on your financial circumstances, risk appetite, and long-term goals.

2. How Much Can You Borrow?

One of the first steps is understanding how much you’re eligible to borrow. Mortgage lenders typically use income multiples to calculate this. For example, they might lend you 4.5 times your annual income. They also consider:

  • Your deposit size.
  • Monthly outgoings.
  • Credit score.
  • Existing debts and financial commitments.

Tip: Use an online mortgage calculator or contact a broker like Mortgage Pro Sussex for a more accurate assessment.

3. Saving for a Deposit

Most lenders require a deposit of at least 5%-10% of the property’s value. The more you can save, the better your mortgage deal (as lenders consider larger deposits less risky).

Government Schemes like the Lifetime ISA can help boost your savings, offering a 25% bonus on contributions.

4. The Importance of Your Credit Score

Before approving a mortgage, lenders will scrutinise your credit history. A good credit score demonstrates reliability and financial responsibility. Make sure to:

  • Check your credit report for errors.
  • Pay off outstanding debts.
  • Avoid taking out new loans or credit cards close to your application date.

Pro tip: Even ensuring you’re registered on the electoral roll can positively impact your score!

5. Getting a Mortgage Agreement in Principle (AIP)

Once you’ve tidied up your finances, the next step is to obtain an Agreement in Principle (AIP). This is a provisional offer from a lender stating how much they may be willing to lend, based on basic financial information.

While not a guarantee, having an AIP:

  • Strengthens your position when making an offer.
  • Shows estate agents and sellers you’re a serious buyer.
  • Gives clarity on your budget.

At Mortgage Pro Sussex, we can help you secure an AIP quickly.

6. House Hunting and Making an Offer

With your budget confirmed, you can start viewing properties. Once you find “the one,” you’ll make an offer. Upon acceptance, the real mortgage application process kicks in.

7. Submitting Your Mortgage Application

This stage involves a more thorough financial check. You’ll need to provide:

  • Proof of income (payslips, tax returns if self-employed).
  • Bank statements (usually 3-6 months).
  • ID documents.
  • Details of any financial commitments.

A mortgage adviser can help collate these documents and submit your application to the lender, ensuring everything is accurate.

8. Property Valuation & Survey

Lenders will arrange a valuation survey to confirm the property’s worth and ensure it’s suitable security for the loan. This is not a full structural survey, so many buyers choose to commission a homebuyer’s report or full building survey for peace of mind.

9. Receiving the Mortgage Offer

Once the lender is satisfied with your finances and the property valuation, you’ll receive a formal mortgage offer. This document will outline:

  • Loan amount.
  • Interest rate.
  • Repayment terms.
  • Any special conditions.

At this stage, it’s wise to review everything carefully with your adviser to ensure there are no surprises.

10. Instructing a Solicitor (Conveyancing)

While waiting for your mortgage offer, you should have appointed a solicitor to handle the legal side. They’ll:

  • Conduct searches (e.g., local authority checks).
  • Review contracts.
  • Handle the transfer of funds.

Having an experienced conveyancer ensures the transaction proceeds smoothly and without unnecessary delays.

11. Exchanging Contracts

Once all searches are complete, and your mortgage offer is finalised, you’ll exchange contracts with the seller. At this point:

  • You’ll pay your deposit.
  • The sale becomes legally binding.
  • Completion date is set.

12. Completion Day – Getting the Keys!

On completion day, the lender releases the mortgage funds to your solicitor, who transfers them to the seller. The property is now officially yours, and you can collect the keys!

13. Post-Purchase Essentials

After moving in:

  • Ensure buildings insurance is in place (often a condition of your mortgage).
  • Set up utility bills, council tax, and other services.
  • Consider overpaying on your mortgage (if allowed) to reduce interest and shorten the term.

Final Thoughts

Navigating the mortgage process as a first-time buyer may seem daunting, but with the right advice and preparation, it becomes far more manageable. At Mortgage Pro Sussex, we’re dedicated to demystifying the process and finding you the best possible mortgage deal tailored to your circumstances.

Ready to take the first step toward homeownership?
Contact us today for personalised advice and start your mortgage journey with confidence!