Getting a mortgage is the biggest financial commitment most people will ever make, and the process can easily feel overwhelming the first time you go through it. The good news is that it is largely a matter of sequence: if you know roughly how much you can borrow, what paperwork to gather, and how the application is assessed, most of the uncertainty disappears. This guide walks through every stage, from checking what you can afford to getting the keys, and it is written for people doing this for the first time rather than experienced investors. Lots of it is simply good organisation — the borrower who arrives prepared almost always gets to completion faster and with less stress than the one who scrambles at each step.
None of this is financial advice, and rates move constantly with the wider economy, so treat the figures below as a guide rather than a quote.
How much can you borrow?
Lenders use an income multiplier to decide how much they will lend, and the standard multiple is 4 to 4.5 times your annual salary. The table below shows what that means at common salary levels.
Borrowing limits by income
| Salary | 4x Income | 4.5x Income |
|---|---|---|
| £25,000 | £100,000 | £112,500 |
| £30,000 | £120,000 | £135,000 |
| £35,000 | £140,000 | £157,500 |
| £40,000 | £160,000 | £180,000 |
| £50,000 | £200,000 | £225,000 |
| £60,000 | £240,000 | £270,000 |
Worked example: you earn £35,000 and your partner earns £30,000. Your combined income is £65,000. At 4.5 times income, you can borrow up to £292,500, and with a £30,000 deposit you could buy a property worth up to £322,500.
Note that some lenders will offer higher multiples of 5-6 times income for high earners or certain professionals, such as doctors, lawyers and accountants. A mortgage broker can tell you which lenders are most flexible in your particular case.
Deposit requirements
The deposit is the amount you pay upfront; everything above it is borrowed as the mortgage. The size of your deposit, expressed as a loan-to-value (LTV) ratio, is one of the biggest drivers of the rate you are offered.
Deposit sizes and LTV ratios
| Deposit | LTV | Mortgage Rate Impact |
|---|---|---|
| 5% | 95% | Highest rates (4.5-5.5%) |
| 10% | 90% | Good rates (4.0-5.0%) |
| 15% | 85% | Better rates (3.8-4.8%) |
| 25% | 75% | Best rates (3.5-4.5%) |
| 40%+ | 60% | Lowest rates (3.0-4.0%) |
Worked example: you buy a £200,000 property with a £20,000 deposit (10% LTV) and the mortgage rate is 4.2%. If instead you had saved £50,000 (25% LTV), your rate would be 3.7%. Over 25 years, that lower rate saves you approximately £18,000 in interest — a strong argument for stretching for a bigger deposit if you can.
Step 1: Check your credit score
Lenders decide whether to lend to you largely on your credit history, so check where you stand before applying. The three main agencies each offer a free check, and their score ranges differ.
| Agency | Free Check | Score Range |
|---|---|---|
| Experian | Yes (experian.co.uk) | 0-999 |
| Equifax | Yes (clearscore.com) | 0-700 |
| TransUnion | Yes (creditkarma.co.uk) | 0-710 |
If your score needs work, there are a few reliable quick wins: get on the electoral roll, pay all bills on time, reduce your credit utilisation, close unused credit accounts, and check your report for errors. Most lenders also expect at least three months’ worth of history, so start a few months before you plan to apply. It is also worth remembering that lenders do not mind seeing a sensible level of credit use — it is erratic behaviour and missed payments they worry about, so a clean, steady history counts for more than an empty one.
Step 2: Get an agreement in principle (AIP)
An agreement in principle is a conditional offer from a lender stating how much they are likely to lend you. It is not a guarantee, but it shows sellers you are a serious buyer and it costs nothing to hold.
How to get an AIP
| Step | Action |
|---|---|
| 1 | Check your credit score |
| 2 | Gather basic income information |
| 3 | Apply online (5-10 minutes) |
| 4 | Receive decision (usually instant) |
| 5 | AIP is valid for 60-90 days |
Worked example: you apply for an AIP with HSBC, entering your salary (£40,000), your deposit (£25,000) and some basic details. Within five minutes you receive an AIP for up to £205,000, and you can view properties and make offers with confidence.
One worthwhile tip: an AIP does not affect your credit score in most cases because it involves a soft search. But some lenders run a hard search, which leaves a mark on your file, so it is worth asking which type they use before you apply.
Step 3: The affordability check
The income multiple sets an upper bound on your borrowing, but lenders go further and check that the mortgage is genuinely affordable. They look at your full financial picture rather than just what you earn.
What lenders check
| Factor | What They Look For |
|---|---|
| Income | Salary, bonuses, self-employed income |
| Outgoings | Rent, bills, subscriptions |
| Debts | Credit cards, loans, car finance |
| Dependents | Children, other dependents |
| Credit history | Payment history, defaults, CCJs |
| Employment | Stability, contract type |
Worked example: you earn £40,000 but have £500 a month in loan repayments, £200 a month in credit card minimums and £800 a month in rent. The lender calculates your net disposable income after all those commitments, along with the new mortgage payment. If it comes out too tight, they will reduce the amount they are willing to lend — which is a good reason to pay down debts before applying.
Step 4: Gather your documents
Lenders require a specific set of documents, and having them ready before you apply speeds the whole process up considerably.
Document checklist
| Document | Required For |
|---|---|
| 3 months payslips | Employed applicants |
| 3 months bank statements | All applicants |
| P60 | Tax year summary |
| Tax returns (SA302) | Self-employed (2-3 years) |
| Proof of deposit | Source of deposit |
| Passport/Driving licence | Identity verification |
| Proof of address | Utility bill, bank statement |
| Employment contract | If new job |
Self-employed additional documents
| Document | Detail |
|---|---|
| SA302 tax calculations | Last 2-3 years |
| Tax year overviews | Last 2-3 years |
| Accountant’s reference | Confirming income |
| Business accounts | Last 2-3 years (limited company) |
| Company bank statements | Last 3-6 months |
Worked example: as a self-employed freelance designer, you need your SA302s for the last two years, your tax year overviews, and six months of personal bank statements showing regular income. Some lenders may also ask for an accountant’s reference, so budget time for that if you are self-employed.
Step 5: Choose your mortgage type
With your affordability in place, the next choice is the type of mortgage, which sets how your rate tracks the wider market.
| Type | Rate | Best For |
|---|---|---|
| Fixed (2-year) | 4.0-4.5% | Short-term certainty |
| Fixed (5-year) | 3.5-4.0% | Long-term certainty |
| Tracker | 3.5-5.5% | Betting on falling rates |
| Variable (SVR) | 5.0-7.0% | Flexibility |
See our UK Mortgage Rates Explained guide for a detailed comparison of how each type behaves.
Step 6: Find a property and make an offer
Once you have your AIP and documents ready, you can start viewing properties in earnest.
Making an offer
| Step | Action |
|---|---|
| 1 | Find a property you want |
| 2 | Check sold prices in the area (Rightmove, Zoopla) |
| 3 | Make an offer (usually below asking price) |
| 4 | Provide your AIP to show you are serious |
| 5 | Negotiate if needed |
| 6 | Offer accepted — inform your mortgage broker/lender |
A practical tip: research sold prices rather than asking prices. Properties commonly sell for 5-10% below asking, so the asking price is guidance, not gospel.
Step 7: Apply for the mortgage
With an accepted offer in hand, you formally apply for the mortgage. The timeline below gives a feel for how the next few weeks and months unfold.
Application process timeline
| Stage | Duration |
|---|---|
| Application submitted | Day 1 |
| Lender reviews application | 1-5 days |
| Valuation arranged | 1-2 weeks |
| Valuation completed | 1-2 days |
| Underwriting | 1-2 weeks |
| Mortgage offer issued | 2-4 weeks |
| Legal work | 4-8 weeks |
| Completion | 8-12 weeks from offer acceptance |
During underwriting the lender reviews your income, credit history, outgoings and the property valuation. They may ask for additional documents, and the process moves faster if you reply quickly. This is also the stage where lenders become pickier about your general situation, so it is wise to avoid big purchases, new credit and any change of job between application and completion; a large new loan on your file at this point can delay or derail the whole application.
Step 8: Property valuation and survey
The lender arranges a valuation to confirm the property is worth what you are paying. A valuation alone, however, will not tell you about the condition of the building — that is what a survey is for.
Types of survey
| Survey Type | Cost | What It Covers |
|---|---|---|
| Valuation (lender) | £0-500 | Basic value check |
| HomeBuyer Report | £300-500 | Detailed condition report |
| Full Building Survey | £500-1,500 | Comprehensive structural check |
Worked example: you buy a Victorian terrace for £250,000. The lender’s valuation confirms it is worth what you are paying. You also commission a HomeBuyer Report for £400, which finds damp in the basement. You negotiate £5,000 off the price to cover the repairs — a reminder that a survey can pay for itself many times over. Always get one, even if the lender does not require it.
Step 9: Receive the mortgage offer
If everything checks out, the lender issues a formal mortgage offer confirming the amount they will lend, the interest rate, the term length and any conditions attached. Check the conditions carefully before signing.
Worked example: your mortgage offer might state a loan amount of £180,000 at 3.7% fixed for five years over a 25-year term, with a monthly payment of £910 and an arrangement fee of £999 (added to the loan). Knowing those numbers precisely lets you plan your budget with confidence.
Step 10: Completion
Completion is the day the mortgage funds are released, ownership of the property transfers, and you collect the keys. Your solicitor confirms the date, the lender transfers the funds to the seller’s solicitor, and once that is confirmed you are the owner of your new home.
First-time buyer schemes
If this is your first purchase, several schemes can reduce the deposit needed or the cost of buying.
| Scheme | How It Works |
|---|---|
| Lifetime ISA | Save up to £4,000/year, 25% government bonus |
| Shared Ownership | Buy 25-75%, pay rent on the rest |
| First Homes | 30-50% discount on market price |
| Own New - Rate Reducer | Developer subsidises mortgage rate |
The bottom line
A mortgage application rewards preparation. Check your credit early, get an agreement in principle, choose your mortgage type before you start viewing, and have your documents assembled so nothing stalls at the last minute. Pay down debts before you apply, since they count directly against what you can borrow, and consider using a broker to access the best deals on the market. From offer acceptance to completion you can reasonably expect 8-12 weeks, so be patient with the process and leave room in your budget for valuation, survey, solicitor and moving costs that sit outside the mortgage itself. Above all, resist the temptation to rush: a wrong decision at this scale can cost tens of thousands of pounds, while a little organisation earns you a lower rate, a smoother transaction and a home you are genuinely happy with. Take each step in order, and the path from first viewing to front door is far more manageable than it first appears.