First-Time Buyer? Here’s Everything You Need to Know About Getting a Mortgage in 2026

So… You’ve decided to buy your first home. Congratulations – and also, deep breath.

Buying your first home is one of the most exciting things you’ll ever do. It’s also one of the most baffling. Between deposits, affordability checks, solicitors, surveys and the mysterious world of mortgage products, it can feel like everyone else knows a secret language that nobody ever taught you.

Don’t worry. We’ve got you. Here’s everything you actually need to know – no jargon, no waffle.

Step 1: Work Out What You Can Borrow (Before You Fall in Love With a House)

Before you start scrolling Rightmove at midnight dreaming about period features and south-facing gardens, it helps to know your budget. Most lenders will offer between 4 and 4.5 times your annual salary. So if you earn £35,000, you’re typically looking at borrowing up to around £157,500.

That’s the starting point – your deposit gets added on top. Speaking of which…

Step 2: The Deposit – How Much Do You Really Need?

The standard minimum deposit is 5% of the property price. On a £200,000 home, that’s £10,000. However, the bigger your deposit, the better the mortgage rates you’ll have access to – and the lower your monthly payments.

Quick tip: A 10% deposit can unlock significantly better rates than 5%. If you can stretch a little further, it’s often worth it.

Step 3: What Actually Happens in a Mortgage Application?

Once you’ve found your dream home (or a perfectly lovely sensible home), here’s what to expect:

• Agreement in Principle (AIP) – a quick check to show sellers you’re mortgage-ready. Takes around 15 minutes.
• Full application – your adviser (that’s where we come in) submits your full details to the lender.
• Valuation – the lender checks the property is worth what you’re paying for it.
• Mortgage offer – you get the formal offer. Cue happy dancing.
• Exchange and completion – solicitors do their thing, and then you get the keys!

Step 4: Fixed vs Variable – What Does That Even Mean?

Fixed rate: Your rate stays the same for a set period (usually 2 or 5 years). Great for budgeting.

Variable/tracker rate: Your rate moves with the Bank of England base rate. More risk, but potentially more reward.

Most first-time buyers go fixed for the security – but the right choice really depends on your circumstances.

Step 5: Don’t Forget the Other Costs

The deposit isn’t the only thing you’ll need to budget for. Watch out for:

• Stamp duty (first-time buyers get relief on properties up to £300,000 – worth checking the latest rates)
• Solicitor/conveyancing fees
• Surveyor fees
• Moving costs – they add up faster than you think

And Finally… Do You Really Need a Mortgage Broker?

Short answer: yes. Longer answer: absolutely yes.

A good mortgage broker – like our team at PK Finance – will search the whole of the market to find the right deal for you. We handle the paperwork, liaise with the lender, and are there to hold your hand every step of the way.

Ready to take the plunge? Give Paul and the team a call on 01477 668000 or visit pkfinance.co.uk for a no-obligation chat. We promise not to make it scary.

 This blog is for informational purposes only and does not constitute financial advice.