Getting a first-time buyer mortgage starts long before you book a property viewing. Preparation can speed up the process and make you a more attractive candidate to lenders.
Keep Stable Employment
Lenders value financial stability. A recent job change may raise concerns, especially if you’re in a probation period or switched industries.
Most lenders look for a two-year employment history. Gaps in employment may trigger requests for additional details.
Not having worked in your current role for more than two years doesn’t automatically lead to rejection—but lenders will likely ask for more context.
Plan Your Deposit
The size of your deposit affects your loan-to-value (LTV) ratio. A lower LTV usually means better interest rates and lower monthly payments.
For example, buying a £250,000 home with a £50,000 deposit results in an 80% LTV, as you’re borrowing 80% of the property value.
While saving a deposit is difficult amid rising living costs, options exist. A Lifetime ISA (LISA) offers a 25% bonus on contributions, up to £1,000 per year.
Other sources include sale of assets, work bonuses, or gifts from family.
Use a Mortgage Calculator
Be Clever With Your Cash offers a mortgage calculator to estimate how much you could borrow and your likely monthly repayments.
It helps you understand affordability before applying.
Avoid Applying for New Credit
Applying for new credit—such as a current account, credit card, or mobile contract—within six months of your mortgage application can harm your credit rating.
Lenders may interpret this as financial instability or excessive debt relative to income.
Get Your Documents Ready
Lenders need proof of identity and income. A driving license or passport is typically required.
If you don’t have one, contact the lender to see what alternatives are accepted.
Prepare the last three months’ payslips and bank statements. These are standard requirements.
If you receive a gift for your deposit, a letter from the giver confirming it’s not a loan is needed. A bank statement from the giver may also be requested.
If you’ve changed your name, you’ll likely need a deed poll or marriage certificate. Ensure all accounts and bills are in your new name.
Remove Old Financial Associations
Old joint accounts with ex-partners can affect your mortgage application. Their credit history may still be linked to yours.
To remove these links, email the credit agency and provide proof of account closure or end of tenancy letters.
Close Unused Accounts
Unused credit accounts may appear as access to too much credit. Closing them can help lenders see a more focused financial profile.
However, closing long-standing accounts may reduce the average age of your credit history and potentially lower your score. Keep some older accounts open if they’ve been held for years.
Compare Mortgage Rates and Deals
With over 200,000 deals from more than 100 lenders, Be Clever With Your Cash offers live tables to compare rates.
Checking the market helps you find the best offer for your situation.
Check You’re on the Electoral Roll
Lenders use the electoral roll to verify your address and trace your credit history.
If you’re not registered to vote, your application is unlikely to progress.
Prepare a Budget
Creating a realistic budget helps you understand your affordability and ensures your mortgage fits within your income.
Avoid Large Cash Deposits Without Proof
Large cash deposits—especially if you can’t prove the source—may raise red flags. Lenders want to verify the origin of funds.
How to Apply as a First-Time Buyer
After preparing, you can apply through a lender or a mortgage broker. Brokers can help find lenders with flexible criteria and better rates.
For first-time buyers, a whole-of-market broker is especially useful due to the wide range of lender rules.
Important: Your home may be repossessed if you fail to keep up repayments. Be Clever With Your Cash may receive a commission from Tembo Money if you use a link provided. This does not affect the price you pay. The fee discount of up to £499 applies only to standard mortgages and remortgages. Complex cases like guarantor or buy-to-let may not qualify. All fees are clearly outlined before application.
For more on first-time buyer savings, see our guide on how to prepare before applying.
Sources & further reading
Featured image: Prime Minister Justin Trudeau announces new First-Time Home Buyer Incentive… by Justin Trudeau – Prime Minister of Canada, CC BY 3.0, via Wikimedia Commons. Image source · License
