A First-Time Buyer’s Guide to Getting on the Property Ladder
Buying your first home is a dream—and a challenge. If you’re a first time buyer, there’s a lot to take in. You’re probably weighing up whether to keep paying rent or start building equity in a new home. You might be unsure how much you can borrow, what kind of mortgage you need or how the application process works.
As mortgage advisers in Cardiff, we talk to people like you every day—people who want clear, honest advice on how to take that first step onto the property ladder.
This guide takes you through everything you need to know—from deposits and monthly payments to government backed schemes, extra costs and how to get a mortgage offer that fits your budget.
Step 1: What Can You Afford
Before you even start house hunting, you need to get a clear idea of your budget.
You’ll need to consider:
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Your income (and your partner’s if you’re buying together)
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The size of your deposit
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Monthly payments
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Ongoing costs like insurance, bills and repayments
Most lenders will lend around 4 to 4.5 times your annual income, although this can vary depending on your financial situation.
Tip: Make sure your budget is realistic. It’s not just about getting a mortgage—it’s about managing the costs of owning a house.
Step 2: Get a Mortgage Agreement in Principle
A mortgage agreement in principle (sometimes called a decision or principle) is a statement from a lender saying how much they’ll lend you. It’s based on your income, credit history and a few basic details.
Having this in hand gives you an advantage when talking to estate agents or making an offer on a property.
Step 3: Save for a Deposit
To get a mortgage you’ll need a deposit. This is usually 5% of the market value of the property, although 10-15% can get you better interest rates.
You might use personal savings, help from family or a government backed scheme like the Lifetime ISA to get your deposit together.
If someone is gifting you the money, most lenders will ask for written confirmation it’s not a loan.
Step 4: Be Aware of Extra Costs
Aside from your deposit, you’ll need to plan for extra costs involved in the buying process:
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Stamp Duty (or Land Transaction Tax in Wales)* Solicitor and conveyancing fees
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Survey and valuation costs
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Insurance or broker fees
Note: If you’re a first time buyer in England or Northern Ireland you won’t pay Stamp Duty on the first £425,000 of a property if it’s under £625,000. In Wales you won’t pay Land Transaction Tax on properties up to £225,000.
Step 5: Choose Your Mortgage
There are many types of mortgages and it’s all about your goals.
Options include:
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Fixed-rate mortgages – Your interest rate stays the same for a set period.
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Tracker or variable-rate mortgages – The rate moves with the Bank of England base rate.
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Discounted rate mortgages – A discount on the lender’s standard rate, often for 2–3 years.
Getting the right advice will help you find a mortgage that’s right for you, whether you’re a key worker, buying with family or looking for long-term stability.
Step 6: Start House Hunting
Now the fun bit—finding your dream home.
Remember:
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Location, commute times and local amenities.
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Think long term. Will the house still suit you in 5 years?
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Stay within your budget and don’t get swayed by estate agent pressure.
Be prepared to move fast in a fast-moving market, especially in popular areas.
Step 7: Make an Offer
Once you’ve found the right property you can make an offer through the estate agent. If accepted it’s time to start the formal mortgage application.
You’ll need to provide:
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Proof of income and ID
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Bank statements and employment details
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Evidence of your deposit
The lender will also do a valuation to check the property is worth the agreed price.
Step 8: Surveys and Conveyancing
A qualified surveyor will check the property’s condition. You can choose from:
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Basic valuation (usually required by the lender)
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Homebuyer Report
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Full structural survey
At the same time a solicitor will start searches and legal checks. This can take several weeks.
Step 9: Exchange and Completion
After contracts are reviewed you’ll exchange contracts and pay your deposit. At this point the sale becomes legally binding.
A few days later you’ll complete the sale—your mortgage funds are released and the property is yours.
You now own your first home.
Real-Life Example: Meet Rhys and Hannah
Rhys and Hannah, a couple living in Cardiff, were paying £950 a month in rent for a 2 bed flat in Canton. They had saved a £15,000 deposit using a Lifetime ISA and both worked full-time.They got a mortgage of £180,000 on a fixed rate and their monthly payments are £860. They’re building equity in their own home. With the help of a mortgage advisor they were through the application in under 6 weeks and moved into their new home in Grangetown.
First-Time Buyer Worries
“What if my credit score isn’t perfect?”
You don’t need perfect credit. Many lenders will consider a range of scores. A broker can help you find the right one.
“Will I ever be able to afford a deposit?”
You might be closer than you think. Government schemes, gifted deposits and shared ownership can all help.
“What if I get turned down for a mortgage?”
Getting turned down once doesn’t mean you won’t be approved elsewhere. A broker can suggest more suitable lenders.
Cardiff Local Tips
If you’re buying in Cardiff here are a few areas to consider:
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Grangetown: Close to the city centre with a growing community feel.
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Llandaff North: Great transport links and riverside walks.
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Splott: More affordable with new developments boosting value.
Remember: In Wales you’ll pay Land Transaction Tax not Stamp Duty.
FAQs
Q: How much deposit do I really need?
A: Most buyers start with 5-10% but a bigger deposit means better rates.
Q: Can I get a mortgage as a single buyer?
A: Yes. It’s based on your income and affordability not your relationship status.
Q: Do I need a mortgage broker?
A: It’s optional but brokers have access to deals you won’t find online and will guide you through every step.
Q: How long does the whole process take?
A: 8-12 weeks from offer to completion but can vary.
Next Steps
Getting on the property ladder doesn’t have to be confusing. If you’re not sure where to start or just want to know what you can afford speak to a qualified mortgage adviser.
Eden Hawk Mortgages, based in Cardiff, specialise in helping first-time buyers across South Wales and the UK. Their team offers tailored advice, explains your options clearly, and supports you through the full mortgage application process.