Buying your first home is one of the most exciting milestones in life. It’s a big step, but with the right preparation, it doesn’t have to be overwhelming. At Mc Daid Mortgages, we’ve been guiding first-time buyers through the mortgage process since 1996, and we know what it takes to make your journey smooth and stress-free.

If you’re thinking about buying your first home, here are 10 key steps to help you get started on the right track.

1. Assess Your Financial Situation

Before you start looking at homes, take a good look at your finances. Consider:

• Your income and job stability
• Your savings for a deposit and other costs
• Any outstanding debts or financial commitments

A good rule of thumb is to have as little debt as possible and a solid savings plan before applying for a mortgage. Lenders will assess your finances to determine what you can afford, so getting your finances in order early will put you in a stronger position.

2. Check Your Credit Score

Your credit score plays a major role in whether a lender will approve your mortgage and what interest rates you’ll be offered. A higher credit score can mean better mortgage deals, so it’s worth checking yours early.

Ways to Improve Your Credit Score:

✅ Register on the electoral roll
✅ Pay bills on time (including credit cards and loans)
✅ Avoid taking on new debt before applying for a mortgage
✅ Check for errors on your credit report and dispute any mistakes

If your score needs improvement, take action at least 6–12 months before applying for a mortgage.

3. Determine How Much You Can Borrow

Lenders will look at your income, spending habits, and debts to calculate how much you can borrow. This is known as your affordability assessment.

Typically, lenders will offer around 4 to 4.5 times your annual salary, but this can vary depending on your circumstances. A mortgage broker, like Mc Daid Mortgages, can help you understand your borrowing potential and guide you to the best deals.

4. Save for a Deposit

The size of your deposit has a big impact on your mortgage options. Most lenders require at least a 5% deposit, but a bigger deposit (10–20%) can get you better interest rates and lower monthly payments.

Ways to Boost Your Deposit:

💰 Save regularly with a dedicated savings account
💰 Use government schemes like Lifetime ISAs (LISA)
💰 Ask family members if they can help (see Step 7)

A larger deposit makes you a more attractive borrower, reducing risk for lenders and securing you better deals.

5. Understand the Other Costs Involved

Buying a home isn’t just about the deposit—you need to budget for additional costs, including:

• Solicitor fees
• Survey fees
• Stamp Duty (if applicable)
• Home insurance
• Life insurance – Protecting your mortgage in case the unexpected happens
• Moving costs

At Mc Daid Mortgages, we’ll walk you through all the costs so there are no surprises along the way.

6. Get a Decision in Principle (DIP)

A Decision in Principle (DIP)—also called an Agreement in Principle (AIP)—is a statement from a lender outlining how much they are willing to lend based on an initial assessment.

💡 Why Do You Need a DIP?
✔ It gives you a clear budget for house hunting
✔ It shows estate agents and sellers that you’re a serious buyer
✔ It speeds up the mortgage application process

DIPs are usually free and can be arranged quickly with the help of a mortgage broker.

7. Explore Deposit Help from Family

Many first-time buyers struggle to save enough for a deposit, but family members can help in various ways:

👨‍👩‍👧 Gifted deposits – Parents or relatives can gift money towards your deposit.
🏡 Guarantor mortgages – A family member can secure your mortgage against their savings or property.
📑 Joint mortgages – Buying a property with family can help increase borrowing power.

If family help is an option, speak to Mc Daid Mortgages, and we’ll find the best solution for you.

8. Consider Government Schemes

If saving a deposit is difficult, government-backed schemes can help:

🏡 Shared Ownership – Buy a portion of a property and pay rent on the rest.
🏡 First Homes Scheme – Discounts for first-time buyers on new-build homes.
🏡 Deposit Unlock – 5% deposit mortgages for new-build homes.

These schemes can make homeownership more affordable, so it’s worth exploring your options.

9. Find the Right Mortgage with Expert Advice

Choosing the right mortgage is one of the biggest financial decisions you’ll make. That’s why working with a whole-of-market mortgage broker, like Mc Daid Mortgages, is a smart move.

🔍 Why Use a Mortgage Broker Instead of Going Direct?
✔ We compare thousands of mortgage deals to find the best one for you
✔ We have access to exclusive deals that aren’t available to the public
✔ We save you time, hassle, and potentially thousands of pounds
✔ We handle the paperwork and liaise with lenders for you

At Mc Daid Mortgages, we offer free mortgage advice when you arrange your mortgage and insurance with us. If you only need mortgage advice, we charge a modest fee of £295, payable only upon a successful mortgage offer.

10. Start House Hunting & Make an Offer

Once your finances are in order and you have a Decision in Principle, you can start viewing properties within your budget.

🏡 Tips for Finding the Right Home:
✔ Think about location, transport, and amenities
✔ View properties at different times of the day
✔ Check for any repairs or hidden costs
✔ Don’t rush—buying a home is a long-term commitment

When you find the perfect home, you’ll make an offer, and if it’s accepted, you’ll move on to the full mortgage application and legal process.

---

Final Thoughts

Buying your first home is exciting, but it comes with important financial decisions. Taking these 10 key steps will help you feel confident and prepared for the process.

At Mc Daid Mortgages, we’ve been guiding first-time buyers since 1996, helping them navigate the mortgage market with expert advice, transparent fees, and local knowledge. We also keep your mortgage under regular review to ensure you always have the right lender, term, and product for your needs.

💬 Want expert help with your first home purchase? Get in touch today!

📞 Call us: 07968155176
📍 Visit us: 40, Coneyville, Derry, BT48 8FW
📧 Email us: pat@mcdaidmortgages.co.uk
🌐 Website: www.mcdaidmortgages.com

Let’s get you on the property ladder! 🏡✨

Your home may be repossessed if you do not keep up repayments on your mortgage.

As with all insurance policies, conditions and exclusions will apply