Our guide to your first mortgage application

10 simple steps to getting your first mortgage application done right.

Follow our 10 step guide to your first mortgage application

Buying your first home is exciting, but the mortgage process can feel daunting. Here’s our step-by-step guide to help you understand and prepare for your first mortgage application.

1. Understand What a Mortgage Is

A mortgage is a loan from a bank or building society used to buy a home. You’ll pay it back monthly, with interest, typically over 25 years.

2. Check Your Credit Score

Lenders use your credit score to assess how likely you are to repay the loan. You can check your score with agencies like Experian, Equifax or TransUnion, but we can do this for you.

You can also improve your score by paying off debts, registering on the electoral roll, and avoiding missed payments.

3. Work Out Your Budget

Try and consider all your costs: a deposit (typically 5–20%), mortgage repayments, legal fees, surveys, and moving costs. In Scotland, first-time buyers do not pay Land and Buildings Transaction Tax (LBTT) on the first £175,000 of a property.

You should also think about all your daily, weekly and monthly bills as well, such as Council Tax, food shopping, and car repayments etc.

4. Save for a Deposit

The bigger your deposit, the better the mortgage deal you’re likely to get. A 10% deposit is standard, but 15–20% could unlock lower interest rates.

5. Get a Mortgage in Principle (MIP)

Before house-hunting, obtain a Mortgage in Principle. You can get a Mortgage In Principle by working with one of our mortgage brokers. It’s a statement from a lender indicating how much they might offer you, based on a soft credit check and strengthens your position when making offers.

6. Find a Property and Make an Offer

Once you find a home, your solicitor will "note interest" and submit a formal offer. If accepted, you’ll move to the conclusion of missives, which is a binding contract between buyer and seller.

7. Submit a Full Mortgage Application

Once your offer is accepted, we can then submit your full mortgage application. You'll need:

• Proof of ID

• Payslips (usually last 3 months)

• Bank statements

• P60 form

• Proof of deposit

• Details of debts and expenses

Your lender will conduct a full credit check and arrange a property valuation to ensure it's worth the loan amount.

8. Receive the Mortgage Offer

If approved, the lender issues a formal mortgage offer. We will check the terms carefully – especially the interest rate, type (fixed or variable), early repayment charges, and fees, but will ask you to check it as well to make sure you understand, and are comfortable with, the terms and conditions.

9. Conclude Missives and Complete the Sale

Once the mortgage is in place, your solicitor will finalise the missives, and you’ll agree on a settlement date. On this date, funds are transferred, and you get the keys to your new home.

10. Move In and Begin Repayments

We recommend you set up a direct debit to begin your monthly mortgage repayments. Keep in mind your mortgage is for a limited time – contact us about six months before your deal is due to end so we can start the search for your next mortgage.

Final Tips.

• Budget realistically to avoid financial stress.

·        Your home may be repossessed if you do not keep up repayments on your mortgage.

With the right preparation and the advice, securing your first mortgage through The Home Hub Mortgage Centre will be as simple and hassle-free as possible.

This information was correct at the time of publications but is subject to change.