First time buyer mortgage london Step-by-Step guide

Buying your first property in London can feel complex, particularly with property prices, deposit requirements, which lender(s) to go and which solicitor to choose across the market.

Understanding the process early can help you prepare financially and reduce uncertainty which makes you confident buyer when dealing with estate agent / vender.

This guide explains the key steps first-time buyers in London should consider when arranging a mortgage.

Step 1: Thinking About Buying Your First Home

Most buyers will require a mortgage to purchase a property. Before applying, lenders will assess whether:

You can afford the monthly repayments
Your income is stable
Your financial commitments are manageable
Your credit history demonstrates responsible borrowing

Two important areas to focus on early are your credit profile and overall financial commitments.

Maintaining regular bill payments, avoiding missed payments and managing credit responsibly can support your mortgage application.

Step 2: Working Out How Much You Can Borrow

Mortgage affordability varies between lenders.

The amount you may be able to borrow usually depends on:

Income and employment type
Financial commitments
Credit history
Deposit size
Property value

Different lenders assess affordability differently, so available borrowing amounts can vary based on individual circumstances.

Obtaining an Agreement in Principle before viewing properties can help you understand your potential borrowing range. That’s where our mortgage adviser can help you.

Step 3: Saving for Your Deposit

First-time buyer mortgages in the UK can start from around 5% deposit, although a larger deposit may provide access to a wider range of lenders and potentially lower interest rates.

For example:

5% deposit → higher loan-to-value mortgage, limited lenders
10% deposit → more lenders & often slightly better rates than 5%.
25%+ deposit → often slightly better rates than 10%.
40% deposit→ this is where many of the headline “best buy” deals tend to sit.

Some buyers may receive support through gifted deposits from family members.

Step 4: Additional Costs First‑Time Buyers Must Budget For

In addition to your deposit, buyers should consider other costs associated with purchasing a property.

These may include:

Legal and conveyancing fees
Survey costs
Mortgage arrangement fees
Moving costs
Stamp duty (where applicable)

Understanding total costs early helps with financial planning.

Step 5: Finding the Right Property and Making an Offer

Once you understand your how much can you borrow, and know how much funds you have available for deposit and other costs, you can begin viewing properties.

When making an offer, buyers may consider:

Recent property sales in the area
Property condition, including any signs of damp, visible damage, age and condition of the boiler and heating system, overall property size and layout, and clarity over the exact property boundaries.
Current market demand, for example whether similar properties are selling quickly or sitting on the market and whether there are competing offers.
Seller circumstances, such as whether the property is vacant or occupied, whether the seller is in a chain, and how quickly they need to move.

In most of England and Wales, an accepted offer does not make the purchase legally binding until contracts are exchanged. In Scotland, offers are usually made through solicitors and the purchase only becomes legally binding once the legal correspondence (known as ‘missives’) has been formally concluded.

Step 6: Applying for Your Mortgage as a First‑Time Buyer

After your offer is accepted, the full mortgage application process begins.

Documents you need for a mortgage application

Proof of identity
Proof of address
Income documents
Bank statements
Deposit evidence
Solicitor details

What happens after you submit your mortgage application

The lender will then process your full mortgage application. This includes running a detailed credit check, reviewing all your submitted documents, and arranging a valuation of the property to ensure it meets their lending criteria

If approved, a final mortgage offer will be issued.

Step 7: Conveyancing Explained for First-Time Buyers

Your solicitor or conveyancer will manage the legal process, including:

Carrying out essential property searches (known as disbursement searches such as local authority, environmental, water & drainage and many more searches relevant to the property)
Reviewing contracts and mortgage deeds
Liaising with the seller’s solicitor throughout
Managing the transfer of funds on completion day

Key milestones:

Exchange of contracts – The purchase becomes legally binding
Completion – Ownership transfers, you get the keys, and it’s yours!

Step 8: What Happens After Completion ( Next Steps for first-time buyers)

What Happens After Completion?
Once completion happens and you get your keys, focus on these essentials:

Confirm buildings insurance is active from completion day (lenders usually require this).
Review your first mortgage direct debit is set up correctly with lender customer service.

Getting Mortgage Advice

Working with a mortgage adviser can help you understand lender criteria, explore available options and navigate the mortgage process.

London Finance Hub provides mortgage advice to clients across London and Greater London through remote consultations.

We work with a wide range of UK lenders and support clients from initial enquiry right through to completion. We’re with you every step of your first home purchase—from Step 1 (thinking about buying) all the way to Step 8 (after completion)

If you would like personalised guidance, you may wish to review our a First Time Buyer Mortgage Broker in London service.

Important Information

London Finance Hub is trading name of Global Finance Hub Ltd, and Global Finance Hub Ltd is directly authorised and regulated by the Financial Conduct Authority.

“Your home may be repossessed if you do not keep up repayments on your mortgage”

Author: Samir Patel

Samir Patel is a CeMap qualified mortgage adviser at London Finance Hub, helping first-time buyers, homeowners and property investors explore mortgage options across the UK. London Finance Hub is directly authorised and regulated by the Financial Conduct Authority.

The information in this article is intended for general guidance only and does not constitute financial, tax or legal advice.

First-Time Buyer Mortgage Guide for London Buyers (2026)