FINANCE
Buying your first home is exciting, but preparing for a mortgage application can sometimes feel a little overwhelming. The good news is that getting your finances in order early can put you in a much stronger position once you are ready to apply First Time Buyers HOW TO GET MORTGAGE-READY
Here are some key steps to help you get mortgage-ready and set yourself up for success. 1. KNOW WHAT YOU CAN REALISTICALLY AFFORD It’s easy to focus on how much a lender might be willing to offer, but it’s important to consider your own budget and what you feel comfortable to pay each month. Remember those other essential bills and living costs and the lifestyle you want to enjoy after becoming a homeowner. Remember, over time interest rates and costs may increase, so you want to leave some funds for emergencies, savings and everything life throws at you. 2. BUILD YOUR DEPOSIT Your deposit can be key to unlocking homeownership. The larger your deposit, the less you need to borrow, which can help reduce your overall mortgage costs. If saving a large deposit feels out of reach, there may be other options worth considering. With Shared Ownership, your deposit can be as little as 5% of the value of the share you are buying, rather than 5% of the full property value.
3. CHECK YOUR CREDIT HISTORY
you may borrow. A soft credit check usually takes place to produce this. Further checks are needed at full application stage, but the AIP will often allow you to put an offer or reservation on a property This is the key step before you go all-in with your full mortgage application 6. GET PROFESSIONAL ADVICE Every first time buyer is different. Your income, spending, debts and circumstances will all play a part in what mortgage is right for you. A qualified mortgage adviser can help you understand your options, find the right deal and make sure your application runs smoothly once submitted to the lender. Getting mortgage-ready doesn’t have to be complicated. By being organised early, understanding your finances and taking the right advice, you can put yourself in a much stronger position once you’re ready to take that exciting first step on to the property ladder.
All mortgage lenders will assess your credit history when making a lending decision. You don’t necessarily need to have a perfect credit score to get a mortgage, but if you do have any credit blips, honesty is always the best policy! Being open with your adviser will help them find you the best option, which may include specialist lenders who have a more flexible approach. The larger your deposit, the less you need to borrow
4. UNDERSTAND YOUR EXISTING DEBTS
For example:
Property value £250,000 5% deposit Mortgage payment Rent and service charge
25% Shared Ownership
Outright purchase
Lenders will take your current financial commitments into account when assessing affordability. As a general rule, the more existing debt you have, the less you will be able to borrow. Similarly, the debt repayments you have will need to be affordable alongside your mortgage and property costs. If you can reduce or clear any debt prior to application, this may work in your favour. 5. GET AN AGREEMENT IN PRINCIPLE
£3,125
£12,500 £1,275
£319
metrofinance.co.uk
£460
N/A
Your home may be repossessed if you do not keep up with repayments on your mortgage.
£779
£1,275
Total
There may be a fee for mortgage advice of up to 1% of the amount borrowed. A typical fee is £499, but this will depend upon your individual circumstances.
Mortgage payments estimated using a 30-year term and interest rate of 5%. Shared Ownership rent costs estimated at 2.75% of unsold equity. Service charge example £30 .
An Agreement in Principle is where the lender gives an initial indication of what
92 First Time Buyer October/November 2026
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