First-Time Buyer's Guide to Getting a Mortgage in London (2026)

Buying your first home in London can feel overwhelming — high prices, unfamiliar jargon, and a lot of forms. Here’s a clear, practical guide to getting your first mortgage.

How much deposit do you need?

Most lenders ask for a minimum deposit of 5–10% of the property price. In London, where average prices are higher, a bigger deposit usually gets you a better interest rate. If you’re not sure how a deposit changes your monthly repayment, try the mortgage calculator — it updates instantly as you change the numbers.

What can you actually afford?

Lenders typically offer 4–4.5 times your annual income, though this varies by lender and circumstances. They’ll also look closely at your outgoings, credit history and any existing debt. Getting a Decision in Principle (DIP) early — before you start house-hunting — tells you (and estate agents) what you can realistically offer.

Don’t forget Stamp Duty

First-time buyers get relief on Stamp Duty Land Tax (SDLT) up to £300,000, with a reduced rate up to £500,000. Above that, standard rates apply. Use the Stamp Duty calculator to see exactly what you’d owe on a specific property price — it’s often a bigger number than buyers expect, so it’s worth budgeting for early.

The steps, in order

1. Get a Decision in Principle
2. Find a property and have an offer accepted
3. Apply for the full mortgage (valuation, underwriting, offer)
4. Instruct a solicitor for conveyancing
5. Exchange contracts, then complete

Why speak to a whole-of-market adviser?

Going direct to one bank means seeing one bank’s rates. A whole-of-market mortgage adviser compares deals across the market and matches you to a lender that actually suits your situation — including specialist options for self-employed buyers, those with a smaller deposit, or gifted deposits from family.

If you’re starting your first-time buyer journey in London, get in touch for a free, no-obligation chat about your options — or see the full range of services I offer.