A Guide for First-Time Buyers in North London and Hertfordshire

Buying your first home is one of the biggest financial decisions you'll ever make. It can feel exciting, overwhelming, and confusing all at once. Here's a clear guide to how it actually works.

How much deposit do you really need?

Most lenders require a minimum 5% deposit. So for a property worth £400,000, you'd need at least £20,000.

But here's the practical reality: the larger your deposit, the better your interest rate, and the smaller your monthly payments. Many first-time buyers aim for 10% to access more competitive rates.

A small deposit doesn't rule you out. It just means understanding your options and matching with the right lender.

How much can you borrow?

Most lenders will let you borrow between 4 and 5 times your annual salary. So if you earn £50,000, you can typically borrow somewhere between £200,000 and £250,000.

If you're buying with a partner, both incomes count, which makes a real difference.

That said, what you can borrow on paper isn't always the same as what you should borrow. We always recommend working out what you can comfortably afford month to month, not just the maximum a lender will offer.

Our first-time buyer mortgage advice can give you a clear figure based on your specific situation.

What about your credit history?

Lenders want to see that you can manage credit responsibly. They'll look at:

• Your credit score
• Any existing debts (credit cards, loans, car finance)
• Missed payments or defaults
• How long you've had credit accounts open

A perfect credit history isn't required, but the cleaner it is, the better the rates you'll be offered.

If you have anything on your record you're worried about, don't assume that rules you out. Different lenders take very different views, and there are specialist lenders who'll work with applicants others would automatically reject.

What schemes are available for first-time buyers?

Government schemes change over time, but currently the main options include:

• Mortgage Guarantee Scheme — Helps you get a mortgage with a 5% deposit
• Shared Ownership — Buy a share of a property (typically 25% to 75%) and pay rent on the rest
• First Homes — Brand new properties sold at a discount to local first-time buyers

Each scheme has eligibility criteria. We'll talk through which ones you could use and whether they're actually right for your situation.

What's the difference between a Mortgage in Principle and a Mortgage Offer?

A Mortgage in Principle, also known as a Decision in Principle or Agreement in Principle, is an early indication from a lender of how much they'd be willing to lend you. It's useful when making offers on properties but isn't a guaranteed loan.

A full mortgage offer comes later, after a complete application and property valuation. This is the formal commitment from the lender.

Most estate agents will want to see your Mortgage in Principle before they take your offer seriously, so it's worth getting one early.

How long does the whole process take?

Here's a typical timeline from when you start looking to when you pick up the keys:

• Speak to a broker and get a Mortgage in Principle: 1 to 7 days
• View properties and make offers: weeks to months
• Offer accepted and full mortgage application submitted: 1 to 2 weeks
• Receive mortgage offer: 2 to 6 weeks
• Legal process (conveyancing) and completion: 6 to 12 weeks

The whole process from application to completion is usually 2 to 3 months once you've had an offer accepted. The chain (other buyers and sellers above and below you) is often the biggest factor in how quickly things move.

How to give yourself the best chance

A few practical things you can do:

• Save as large a deposit as you can
• Keep your credit history clean for at least 6 months before applying
• Reduce existing debts where possible
• Avoid taking out new credit in the months leading up to your application
• Get a Mortgage in Principle before you start viewing properties
• Speak to a broker who can search the whole market

The bottom line

Buying your first home doesn't have to be complicated. With the right advice, the right lender, and a clear plan, it can actually feel surprisingly manageable.

If you'd like to know what your options look like, book a free call with the Kudos Mortgages team. We'll talk through your situation, give you a clear borrowing figure, and explain exactly what your next steps should be. No obligation, no jargon, just honest advice.