The mortgage process can feel daunting if you have never done it before. Understanding each stage, from getting an Agreement in Principle to picking up the keys, will help you feel more confident and avoid common pitfalls. This guide walks you through the entire first-time buyer mortgage process, step by step.
For a complete overview of buying your first home, read our first-time buyer guide.
- 01
Agreement in Principle
Get a preliminary lending decision based on a soft credit check.
- 02
Find a property and make an offer
View homes within your budget and negotiate a price.
- 03
Full mortgage application
Submit documents for a detailed affordability and credit assessment.
- 04
Valuation and survey
The lender values the property; you commission your own survey.
- 05
Mortgage offer
The lender confirms the loan amount, rate, and conditions.
- 06
Conveyancing and legal work
Your solicitor handles searches, contracts, and fund transfers.
- 07
Exchange and completion
Contracts become binding, funds transfer, and you collect the keys.
What is an Agreement in Principle and why do you need one?
An Agreement in Principle (AIP) is a written confirmation from a lender showing how much they would lend you, based on a preliminary check of your finances. You can get a quick estimate before applying by using our affordability calculator. Getting an AIP before you start house hunting is strongly recommended because it sets your budget, shows sellers you are a serious buyer, and flags any issues early.
First, it gives you a clear budget so you know what price range to search in. Second, estate agents and sellers take you more seriously when you can demonstrate that a lender has reviewed your finances. Third, it flags any potential issues early, giving you time to address them before making an offer.
An AIP typically involves a soft credit check (which does not affect your credit score) and is usually valid for 60–90 days. You can get one through a lender directly or through a mortgage broker. It is not binding — you are free to apply to a different lender when the time comes.
An AIP is not a guarantee of a mortgage — but it gives you a clear budget and shows sellers you are a serious, credible buyer.
How do you find a property and make an offer?
Once you have your AIP, you can view properties within your budget and make offers through the estate agent. Offers in England and Wales are not legally binding until contracts are exchanged, so either party can withdraw up to that point.
When negotiating, bear in mind that sellers often accept offers slightly below the asking price. Your AIP can strengthen your position by demonstrating you are a credible buyer with finance already assessed.
What documents do you need for a full mortgage application?
You will need proof of identity, income, address, and your deposit source. Once your offer is accepted, you submit a full mortgage application and the lender carries out a comprehensive assessment, including a hard credit check. You will typically need to provide:
- Proof of identity (passport, driving licence)
- Proof of address (utility bill, bank statement)
- Proof of income (payslips for the last three months, or accounts and SA302 if self-employed)
- Bank statements (typically the last three months)
- Proof of deposit (savings statements, gift letter if applicable)
- Details of the property you are buying
- Information about any existing debts or commitments
Having all of this ready in advance can speed up the process considerably. A broker can tell you exactly what each lender requires and help you compile your application.
Do you need a property survey when buying a house?
Yes, you should commission your own survey in addition to the lender’s valuation. The lender arranges a valuation to confirm the property is worth enough to serve as adequate security for the mortgage, but this is done for the lender’s benefit, not yours, and may be a physical visit or a desktop assessment.
Separately, you should strongly consider commissioning your own survey. Options include:
- RICS Condition Report (Level 1):A basic report suitable for newer, standard-build properties. Typically costs £250–£400.
- Homebuyer Report (Level 2):A more detailed inspection that highlights any significant issues. The most common choice for standard properties. Typically costs £400–£700.
- Full Structural Survey (Level 3):A comprehensive investigation recommended for older, larger, or unusual properties. Typically costs £600–£1,500.
If the survey reveals issues, you can renegotiate the price, ask the seller to fix problems before completion, or in some cases, withdraw from the purchase.
What happens when you receive your mortgage offer?
A mortgage offer is a formal document confirming the amount the lender will lend, the interest rate, the term, and any conditions. If the lender is satisfied with your application and the property valuation, they will issue this offer. Review it carefully and raise any questions with your broker or lender before proceeding.
Mortgage offers are typically valid for three to six months. If there are delays and the offer expires, you may need to reapply, which could mean being assessed against updated criteria or rates.
What does a conveyancer do when you buy a house?
A conveyancer or solicitor handles all the legal work involved in transferring property ownership, including searches, contracts, and fund transfers. Their responsibilities include:
- Carrying out local authority searches, environmental searches, and water and drainage searches
- Reviewing the contract from the seller’s solicitor
- Raising enquiries about any issues with the property
- Preparing the transfer deed and mortgage deed
- Arranging the transfer of funds on completion day
- Registering the property and mortgage with the Land Registry
Conveyancing typically takes four to twelve weeks, and it is often the longest part of the buying process. Stay in regular contact with your solicitor and respond to any requests for information promptly to avoid unnecessary delays.
What happens at exchange of contracts and completion?
Exchange is when the sale becomes legally binding, and completion is when the funds transfer and you collect your keys. At exchange, both you and the seller sign the contract, and you pay the deposit (usually 10% of the purchase price, minus any amount already paid). A completion date is set, typically one to two weeks after exchange.
On completion day, the mortgage funds are released by the lender, your solicitor transfers the full purchase price to the seller’s solicitor, and you receive the keys. You are now a homeowner.
Make sure you have buildings insurance in place from the date of exchange (not completion), as you have a legal interest in the property from that point. Most lenders require this as a condition of the mortgage offer.
Ready to get started? A specialist broker can guide you through every step of the process. Complete our short online form to begin.
- Get an Agreement in Principle before house hunting — it sets your budget and strengthens your offers.
- Have all documents ready (ID, payslips, bank statements) to speed up your full application.
- Commission your own survey — the lender’s valuation protects them, not you.
- Conveyancing typically takes 4–12 weeks and is often the longest part of the process.
- Arrange buildings insurance from exchange, not completion — your lender will require it.