Are you a first time buyer? Here’s your mortgage checklist

Life isn’t exactly easy as a first time buyer; the average first time buyer now faces £32,967 in upfront costs according to this research – that’s £1,000 more than in 2024! Conditions are however improving as Lloyds Banking Group explains:

“Typical first-time buyer homes now cost 5.9 times average earnings – the lowest ratio since 2015. Average monthly mortgage payment is now £1,087 – around £259 less than renting. Inverclyde in Scotland is the most affordable location in Britain, Kensington and Chelsea in London the least affordable… Lower mortgage rates, rising wages and slower house price growth mean affordability is steadily improving… it’s now better than it’s been for several years.”

Pressures may be easing thanks to recent market improvements, but it still remains a difficult and daunting process to get onto the property ladder, and saving a first home house deposit and funds for other buying expenses is just the beginning. There are several tasks you must complete prior to and during the mortgage application phase. Here’s a checklist to help you prepare…

Check your credit report

One of the first tasks to tick off your to-do list is also the easiest. It’s among the first things potential lenders will assess too, so well worth reviewing before you even begin your property search.

Check your credit report three to 12 months before to give yourself plenty of time to prepare for the biggest purchase of your life to date. Credit reports can be obtained from UK credit reference agencies – such as Experian, Equifax and TransUnion – and used to check for errors, outdated information or signs of fraudulent activity.

Even simple mistakes, such as an old address or incorrect missed payment, could affect your mortgage eligibility and application. Use this time to identify and correct inaccuracies (updates can take several weeks to appear on your report) and improve your chances of mortgage approval.

Register to vote

If you’re not already registered to vote at your current address, you should do this at an early stage too. Your status on the electoral roll is more helpful than you think, enabling lenders to verify your identity and address history. Being registered on the electoral roll is a quick win that can help your mortgage application go ahead smoothly.

Review your spending

With time to spare, you can completely revolutionise your mortgage eligibility. Reduced unnecessary spending, stable and predictable finances, a good debt to income ratio, and a healthy savings buffer can all paint a picture of an ideal mortgage applicant.

Lenders look closely at recent bank statements to determine if you can comfortably manage mortgage repayments alongside your existing commitments. Review your spending habits and strengthen your mortgage application from the very beginning.

Avoid any major changes

Lenders want consistency from their applicants, which makes major financial changes big no-nos as you approach the crucial mortgage application stage.

With this in mind, you should avoid taking out new loans, financing a new car, opening multiple credit cards, changing jobs or transitioning from employed to self-employed. While such changes don’t prevent mortgage approval, they do complicate the assessment process.

Gather the essentials

Being prepared with the right documentation can save time and A LOT of hassle. By having everything you need to hand, you can keep your mortgage application on track.

Documents needed for mortgage applications include proof of ID (such as a passport or driving licence), proof of address, bank statements (usually at least three months’ worth), payslips (or tax calculations if you are self-employed), your latest P60, evidence of bonuses or commissions (where applicable), proof of deposit and a gifted deposit letter (if required).

Seek advice from us

Speaking to an independent mortgage broker is something we’d always advise. Brokers, like us, compare mortgages from multiple lenders with zero affiliation or commitment to just one. With this, we recommend mortgage products that are just for you and suit your unique circumstances. Our brokers can help you navigate the home buying process with ease, and avoid the mistakes first time buyers so commonly make.

Advice and assistance from us will save you time, minimise stress and help you secure the best possible mortgage deal. Get started right here.