We've been helping people to buy their own homes for over 175 years and our friendly mortgage advisers would be happy to speak with you. Whether you have questions about saving for a deposit, the application process, or interest rates available to first time buyers, our team is committed to helping you fulfil your dream of owning your own home.
You can pop into one of our six relationship centres across Scotland, complete a mortgage enquiry form, or you can call us on 0333 207 4007.
Let’s make your dream home a reality. Start your journey today!
A mortgage is a loan you can use to help buy a property. Mortgages are typically paid back in monthly payments, usually spread over 25-30 years. It's important to understand that a mortgage is a loan that's secured against your home, which means that you might lose your home if you are unable to keep up with repayments. As first-time buyers, it’s essential to be sure you can comfortably afford your monthly mortgage repayments and to fully understand how interest works, including that rates can change over time, which could affect what you pay. Taking the time to budget and plan ahead will help protect your home and your peace of mind.
There's no set figure for a deposit, as that's influenced by a number of factors. For example, a 10% deposit on a property costing £150,000 would be £15,000 and 10% on a property costing £200,000 would be £20,000. It’s worth keeping in mind that that different products require a minimum deposit based on the Loan to Value (LTV), which is the percentage of the property’s value you’re borrowing. The larger your deposit, the lower LTV, which can open access to better rates.
The deposit is just one factor that mortgage lenders take into consideration, with things like your annual income and monthly outgoings also used to determine your eligibility for a mortgage.
At Scottish Building Society, we have a range of mortgage products designed to help new buyers take those first steps on to the property ladder. This includes our Guarantor mortgage product, which is ideal if you're getting help from family to help buy your first property.
Now you know how to get started, let us take you through the application process all the way to owning your first home.
1. Get your documents together
When you apply for a mortgage, your lender or broker will ask for a few documents, which will include things like payslips, bank statements, and utility bills. This isn’t anything to worry about; it simply helps them understand your income, spending, and credit history so they can make sure your monthly payments will be affordable to you.
Tip: Have at least three months’ worth of bank statements ready and make sure they’re easy to read
2. Get an Agreement in Principle (AIP)
Once you’ve shared your details, your lender or broker can give you an Agreement in Principle (also known as a Decision in Principle, or DIP). This shows roughly how much you could borrow. It’s not a guarantee, but it helps you know your budget and shows sellers you’re serious.
Tips: An AIP usually only lasts a couple of months. If your house search takes longer, you might need to refresh it.
3. Find your home
Now that you have a budget in mind, start viewing properties. When you find “the one,” make an offer. If it’s accepted, you can move to the full mortgage application.
In Scotland (except for new builds), you’ll usually get a Home Report from the seller. This outlines the property’s condition, any repairs needed, its energy rating, and other key details, helping you spot potential issues before you buy.
Tips:
- Bring a checklist when viewing homes and review the Home Report (if applicable). Look for things like boiler age, roof condition, and any signs of damp.
- Don’t stretch your budget to the absolute maximum. Try to leave some room for moving costs, furnishings, and the “oh, we didn’t think of that” expenses.
4. Submit your full application
Your lender will now look at everything in detail. They’ll review your documents, run a full credit check, and arrange a valuation of the property. You're almost there!
Tip: Respond quickly to any requests from your lender or broker as delays here can slow the whole process
5. The mortgage offer
If everything checks out, you’ll get a formal mortgage offer. This confirms the amount you’re borrowing, the amount you’ll pay each month including the interest rate, and the terms of the loan.
Tips:
- Double-check every detail (especially the interest rate and any fees) to make sure it matches what you discussed.
- Some offers expire within a set time frame (often three to six months), so keep things moving.
6. Exchange of contracts - also known as Concluding Missives
With your mortgage offer in place, your solicitor will exchange contracts with the seller’s solicitor. In Scotland, this is referred to as concluding missives. At this point, you’re legally committed to the purchase.
Tips: Make sure you have home insurance ready to start from the day you exchange or conclude missives, as it’s often a requirement.
7. Completion day
Your lender releases the funds to the seller, you get the keys, and you are officially a home owner. Time to celebrate and unpack!
Tips:
- Arrange your utilities, council tax, and internet in advance so you’re not left in the dark (literally).
- Moving day can be hectic, so label boxes clearly to avoid spending your first night hunting for the kettle
We've been helping people to buy their own homes for over 175 years and our friendly mortgage advisers would be happy to speak with you. You can pop into one of our six relationship centres across Scotland, complete a mortgage enquiry form, or you can call us on 0333 207 4007.
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Our lines are open 9am - 5pm Monday to Friday (10am - 5pm Wednesday). Calls may be recorded and/or monitored.