5-minute read | Published October 2026
Preparing for a mortgage takes more than saving a deposit. Understanding what you can comfortably afford, preparing your finances and budgeting for extra costs will help you search with confidence.
- What can you comfortably afford?
A lender might offer you a certain amount, but you don’t have to borrow every penny.
Start with your usual income and spending, then factor in the costs of owning your home:
- Council Tax
- Utilities, broadband and other household bills
- Buildings and contents insurance
- Service charges or estate fees
- Repairs and maintenance
- Travel or commuting costs
Think about how your circumstances could change, too. A new job, starting a family or higher mortgage payments when your initial deal ends could affect your budget.
Try testing your finances against a higher monthly mortgage payment. If that would leave things uncomfortably tight, consider lowering your property budget.
- Budget for upfront costs
Your deposit is only part of the money you will need. Other costs may include:
- Solicitor or conveyancer fees and property searches
- A survey
- Mortgage arrangement or product fees
- Adviser fees
- Removal costs
- Furniture, appliances, decorating and initial repairs
- Stamp Duty or another property tax
You may also need to arrange and pay for buildings insurance before moving in, so check the timing with your solicitor.
For eligible first-time buyers purchasing their main home in England or Northern Ireland, Stamp Duty Land Tax relief currently means no SDLT on the first £300,000 and 5% on the portion above £300,000, provided the property costs no more than £500,000. Relief is unavailable above that price, and all joint buyers must qualify. Other conditions and surcharges may apply.
Scotland and Wales have different property tax systems. Ask your solicitor to confirm your liability, or check the GOV.UK Stamp Duty guidance.
Avoid putting every pound into your deposit. Keeping some money aside will help cover moving costs and unexpected repairs.
- Build your deposit
Some lenders accept relatively small deposits. A larger deposit reduces your loan-to-value ratio (the mortgage amount compared with the property’s value) and may give you access to a wider choice of deals.
If you are still saving, a Lifetime ISA could help. Eligible savers can contribute up to £4,000 each tax year and receive a 25% government bonus. To use it for a qualifying first-home purchase, the property must cost £450,000 or less, you must buy with a qualifying mortgage, and at least 12 months must have passed since your first payment into the account. Your solicitor or conveyancer must handle the withdrawal.
Check the full Lifetime ISA rules on GOV.UK before committing your savings. Withdrawals that do not meet the permitted conditions normally incur a 25% charge, which can leave you with less than you originally saved.
If family members are giving or lending you deposit money, tell your mortgage adviser and solicitor early. The lender will usually need evidence of its source and whether it must be repaid.
- Prepare your finances
Before applying, review your credit reports. Check your personal details, address history and accounts, and query any errors.
You can also strengthen your application by:
- Paying bills and credit commitments on time
- Reducing expensive debt where possible
- Avoiding repeated use of an unarranged overdraft
- Avoiding several new credit applications close together
- Saving regularly
- Gathering payslips, bank statements and proof of deposit
A past credit problem does not automatically rule out a mortgage. Lenders assess issues differently, including what happened and how recently. An adviser can help you understand which lenders may suit your circumstances.
- Get a Decision in Principle
A Decision in Principle, also called an Agreement in Principle, gives an initial indication of how much a lender may offer. It can help you set a property budget and show estate agents that you have considered your finances before making an offer.
It isn’t a mortgage offer. The lender must still assess your application, check your documents and confirm that the property meets its requirements.
Keep your finances steady during the buying process. Changing jobs, taking out a loan or making a large credit-card purchase could affect the final decision. Tell your adviser if your circumstances change.
- Compare the full mortgage cost
The lowest interest rate is not always the cheapest or most suitable option. When comparing mortgages, consider:
- Monthly payments
- Arrangement fees, sometimes called product fees, and other charges
- The length of the initial deal and what happens when it ends
- Early repayment charges and over payment allowances
- The mortgage term
- Whether you can transfer the mortgage to another property, subject to approval
- The total cost over the same comparison period
For example, a slightly higher rate with no product fee could work out cheaper for someone borrowing a smaller amount.
A longer mortgage term may reduce your monthly payment, but it usually means paying more interest overall. Balance the immediate saving against the long-term cost.
- Check the property and lease
A mortgage valuation is for the lender’s benefit. It is not a full survey and may not identify repairs or structural problems.
An independent survey can highlight issues that need further investigation. Depending on the findings, you may be able to renegotiate the price or reconsider the purchase.
If you are buying a leasehold property, ask your solicitor to check:
- How many years remain on the lease
- Service charges, planned major works and the reserve fund
- Ground rent payments and any increases
- Restrictions on pets, alterations or letting
- How the building is managed
Short leases can be harder to mortgage and expensive to extend. Leasehold reforms are being implemented in stages, so ask your solicitor to explain the rules currently in force and what they mean for the property you are considering.
Get first-time buyer mortgage advice
Speaking to a mortgage adviser before house-hunting can help you understand your borrowing options, prepare your application and set a realistic budget.
At All Aspects Financial, we consider your mortgage alongside your wider finances and future plans, helping you find borrowing that fits your circumstances.
To discuss your first-home plans, call 0330 390 5700, email enquiries@allaspectsfinancial.co.uk, or book a consultation.
Important information
This article provides general information and does not constitute personal financial advice. Mortgage availability depends on your circumstances and the lender’s criteria. Tax rules and government schemes can change.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All Aspects Financial and AAF are trading names of All Aspects Financial Planning Ltd. Company Registration Number 12900318. FCA Firm Reference Number 1008239.
