The stages of getting a mortgage for first-time buyers or the self-employed are:

1. Creating a budget 

You need to work out how much you can realistically afford to borrow and what monthly repayments you can manage. Account for the deposit, the mortgage repayments, solicitor's fees, surveys, taxes and other associated costs.

2. Saving for a deposit 

This will be a percentage of the property’s purchase price. A larger deposit can provide a wider choice of mortgage deals and products at potentially lower interest rates. First-time buyers may benefit from certain schemes or products designed to help them get onto the property ladder. View Finance can help with first-time buyer mortgages.

3. Credit history checks 

Lenders need to assess your credit history when an application is considered. Checking your credit report before applying can give you the opportunity to correct errors and understand how lenders view your application.

4. Getting a Mortgage Agreement in Principle

An Agreement in Principle (AIP) gives you an indication of how much the lender will be willing to lend. It’s based on information you’ve provided within your initial mortgage application and your credit history. This is normally acquired before house hunting commences as it demonstrates more accurately how much you can afford to pay.

5. Finding a property 

Once you have an Agreement in Principle (AIP), you can search for a property to buy. However, you should not assume that the maximum amount a lender is willing to offer is necessarily the amount you can actually afford. Always refer back to your budget.

6. Making an offer 

When you find a property you like, and that is within your budget, you can make an offer to the current owners. This is usually done through an estate agent. If the seller accepts the offer, then you can move forward in the next stages of your mortgage application, which often includes the legal side of your house purchase.

7. Submitting your full mortgage application 

The lender, at this stage, will carry out a more detailed check into your finances. You’ll then need to provide information about your income, expenditure, savings, debts and your employment situation.

If you are self-employed, then you may need to provide additional documentation, such as tax calculations, accounts, tax year overviews and bank statements. The requirements here can vary depending on the lender and how long you’ve been self-employed.

8. Having property valuations & surveys carried out 

The lender can arrange for a property valuation to be carried out to ensure the property provides sufficient security for the loan. As the prospective buyer, you can also choose to have a private valuation carried out on the property.

You can also have a survey conducted where a professional in the field will assess the property for any problems, including those that are structural. A lender’s valuation will not be a full structural survey, and so if this is something you require, you will need to arrange for it to be done privately and using your own funds.

9. Receiving your mortgage offer 

If the lender is satisfied with both the property itself and your application, then it will issue you with a formal mortgage offer. Your solicitor or conveyancer will also continue carrying out the necessary legal checks.

10. Exchanging contracts 

Once all of the legal work has been carried out and everything has been completed, the contracts need to be exchanged. It’s at this point that the purchase becomes legally binding, and neither party can pull out of the process.

11. Completing the purchase 

Completion day is when the mortgage lender releases the funds, and the remaining purchase price is paid to the seller. It’s from this moment that you become the legal owner of the property, and you can collect the keys from the estate agent involved.