First-Time Buyer Mortgage Checklist: Documents, Deposit and What Happens Next

This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.

Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026

Buying your first home involves more moving parts than most people expect: the mortgage itself, the deposit evidence, the legal work, the survey and a chain of dates that all have to line up. The good news is that the process is predictable. Almost everything a lender or solicitor will ask for can be gathered before you even start viewing properties.

This checklist walks through the process in the order it usually happens, so you can prepare the paperwork early, avoid the most common delays, and understand what each stage actually means. It reflects the position in England and Northern Ireland; some details differ in Scotland and Wales.

The first-time buyer checklist

Check your credit reports with all three main agencies
Work out a realistic monthly budget, not just a maximum loan
Save or confirm your deposit and gather evidence of its source
Gather ID, proof of address, payslips and bank statements
Get an agreement in principle before offering on property
Check current Stamp Duty relief and thresholds on GOV.UK
Instruct a solicitor or conveyancer early
Arrange your own survey — don't rely on the lender's valuation
Budget for legal fees, survey costs, moving costs and insurance
Arrange buildings insurance from exchange of contracts

Step 1: Get your finances ready before you apply

Lenders assess affordability — not just income. They look at your committed outgoings (loans, credit cards, car finance, childcare, subscriptions), your spending patterns shown on bank statements, and how you would cope if rates rose. In the months before applying, it helps to reduce unused credit limits, clear short-term debt where possible, avoid new credit applications, and keep your bank account conduct tidy. Gambling transactions, persistent overdraft use and bounced payments can all raise questions.

Register on the electoral roll at your current address if you are not already — it is one of the simplest ways to strengthen a credit file. Check your reports with the three main credit reference agencies (Experian, Equifax and TransUnion), because different lenders use different agencies. Correct any errors before you apply: a wrong address history or an account that isn't yours can cause an avoidable decline.

Step 2: Understand your deposit and how to evidence it

Your deposit usually comes from savings, a gift from family, a Lifetime ISA, or a combination. Whatever the source, expect to prove it. Lenders and solicitors must satisfy anti-money-laundering rules, which means showing a paper trail: statements showing savings building up, or a gifted deposit letter and the giver's statements. Large unexplained cash deposits into your account will be questioned, so keep records of anything unusual, such as a car sale.

A Lifetime ISA lets eligible buyers aged 18–39 save towards a first home with a 25% government bonus, subject to annual and property price limits and withdrawal rules. Check the current rules on GOV.UK before relying on it, as limits and eligibility can change.

Step 3: Get an agreement in principle

An agreement in principle (AIP) tells you — and estate agents — roughly what a lender may lend. Most agents will ask for one before taking an offer seriously. It involves basic income and outgoings information and usually a credit check. It is not a promise: the lender still needs to verify everything and value the property. Treat the AIP figure as a ceiling, not a target, and remember that borrowing the maximum is rarely the comfortable option.

Step 4: The documents lenders typically ask for

Document	What lenders usually expect	Why it matters
Photo ID and proof of address	Passport or driving licence, plus recent utility bills or bank statements	Identity verification and anti-money-laundering checks
Payslips	Usually the last 3 months (more if income includes bonus, commission or overtime)	Confirms basic and variable income
Bank statements	Usually the last 3–6 months for all accounts	Shows spending, commitments and deposit build-up
P60	Most recent tax year's P60	Cross-checks annual income against payslips
Self-employed evidence	SA302s and tax year overviews, or accounts — often 2–3 years	Replaces payslips for non-employed income
Deposit evidence	Savings statements, or a gifted deposit letter and the giver's statements	Proves the source of funds
Credit commitments	Details of loans, cards, car finance and student loans	Feeds into the affordability calculation

Requirements vary by lender and case. Your advisor will confirm exactly what each lender needs before you apply.

Gathering these before you find a property can shave weeks off the process. The most common cause of delay is a lender asking for a document the applicant then has to hunt for.

Step 5: Offer accepted — what happens next

Once your offer is accepted, the full mortgage application is submitted with your documents. The lender underwrites the case and instructs its valuation of the property. If everything stacks up, you receive a formal mortgage offer — the document that actually commits the lender. Offers are typically valid for several months (often around six), which matters if the legal work drags on.

In parallel, your solicitor or conveyancer carries out searches, reviews the contract pack and raises enquiries with the seller's solicitor. This is the legal due diligence: checking title, planning matters, flood risk and local authority information. Choosing a communicative solicitor early — and returning their paperwork promptly — keeps this stage moving.

Step 6: Valuation versus survey — know the difference

The lender's valuation exists to protect the lender's security. It is not a condition report and can even be carried out remotely. A survey, arranged and paid for by you, inspects the property's condition: a Level 2 Home Survey suits most conventional homes in reasonable condition, while older or unusual properties may justify a more detailed Level 3 Building Survey. Spending a few hundred pounds on a survey can save thousands — or give you grounds to renegotiate.

Step 7: Exchange, completion and Stamp Duty

Exchange of contracts is the point of no return: you pay the deposit across, the completion date is fixed, and you are legally committed. Completion is when the mortgage funds are released, the balance is transferred and you get the keys. Your solicitor also handles the Stamp Duty Land Tax return and any payment due.

Stamp Duty Land Tax: first-time buyer relief in England and Northern Ireland currently means no SDLT on the first £300,000 of a property costing up to £500,000, with 5% on the portion from £300,001 to £500,000. Buyers of properties over £500,000 pay standard rates with no relief. This is correct at the time of writing but thresholds and rules change — always check GOV.UK before you budget. Different taxes apply in Scotland (LBTT) and Wales (LTT).

The costs people forget

Legal fees and search fees, plus Land Registry charges
Survey costs, which rise with the level of inspection
Mortgage arrangement or product fees — some can be added to the loan, but you then pay interest on them
Broker fees, where charged — at Highhouse Money, if a fee is charged it is only payable on completion
Buildings insurance, usually needed from exchange of contracts
Removal costs, and a contingency for immediate repairs or essentials

What lenders may assess

Income and its reliability — basic salary versus variable elements like bonus, overtime and commission
Committed outgoings: loans, credit cards, car finance, childcare and maintenance
Bank statement conduct: overdraft use, returned payments, gambling and general spending patterns
Credit history across one or more of the main credit reference agencies
Deposit size and where the money has come from
Employment status and time in role, or trading history for the self-employed
The property itself — type, construction and condition, confirmed by the valuation
How the payment would remain affordable if interest rates were higher

Every lender sets its own criteria, which change regularly. The points above are common themes, not a guarantee of how any individual lender will treat an application.

Frequently asked questions

How much deposit do I need as a first-time buyer?

Most lenders ask for at least 5% of the purchase price, although a larger deposit usually gives access to a wider choice of products and often lower rates. There is no single 'right' deposit — it depends on your income, outgoings, credit history and the property. A whole-of-market advisor can compare what different lenders would offer at your deposit level.

What is an agreement in principle and how long does it last?

An agreement in principle (also called a decision or mortgage in principle) is a lender's indication of how much it may be willing to lend, based on basic information and usually a credit check. It is not a guarantee of a mortgage. Most are valid for around 30 to 90 days, depending on the lender, and can usually be refreshed if they expire.

Does an agreement in principle affect my credit score?

Some lenders use a 'soft' search for an agreement in principle, which does not affect your credit file, while others use a 'hard' search that leaves a footprint other lenders can see. Check which type a lender uses before applying, and avoid lots of hard searches in a short period — several in quick succession can make you look desperate for credit.

Do first-time buyers pay Stamp Duty?

First-time buyer relief can reduce or remove Stamp Duty Land Tax in England and Northern Ireland, subject to price limits and eligibility rules. Correct at the time of writing, eligible first-time buyers pay no SDLT on the first £300,000 of a property costing up to £500,000, and 5% on the portion between £300,001 and £500,000. Rules and thresholds change, so always check the current position on GOV.UK before budgeting.

Can I use a gifted deposit from my parents?

Yes, most lenders accept gifted deposits from close family, but they will want evidence: typically a signed letter confirming the money is a gift (not a loan), that the giver has no interest in the property, plus the giver's ID and bank statements showing where the funds came from. Your solicitor will also carry out anti-money-laundering checks on the source of the funds.

What is the difference between a valuation and a survey?

A mortgage valuation is a brief check carried out for the lender to confirm the property is worth what you are paying — it protects the lender, not you, and may not even involve a visit. A survey (such as a Level 2 Home Survey or a more detailed Level 3 Building Survey) is arranged and paid for by you and reports on the property's condition. Many buyers rely on the valuation alone and later discover problems a survey would have flagged.

How long does it take to get a mortgage offer?

Timescales vary by lender, case complexity and how quickly documents are supplied. A straightforward case can receive an offer within a few weeks of the full application; more complex income or credit histories can take longer. Responding quickly to requests for documents is the single biggest thing within your control.

What happens between exchange and completion?

At exchange of contracts the sale becomes legally binding, your deposit is paid across, and a completion date is fixed. Between exchange and completion your solicitor draws down the mortgage funds, you arrange buildings insurance (usually required from exchange), and you book removals. On completion day the money is transferred and you collect the keys.

Sources and further reading

Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.

Residential mortgages

How we help first-time buyers and home movers across the whole of the market.

Self-employed and director mortgages

Buying your first home with self-employed or company income.

When should you start remortgaging?

For when your first deal comes to an end.

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