While purchasing your first home can feel like an exciting milestone, it can also be overwhelming at times.

Indeed, after months or years saving for a deposit, you may find yourself comparing various mortgage terms, affordability checks, and loan-to-value (LTV) ratios. 

This can be somewhat daunting, especially if it is your first time applying for a mortgage. 

According to the Guardian (28 May 2026), young first-time buyers are facing one of the most challenging periods since the financial crisis. This is partly due to higher borrowing costs, student loan repayments, and pressure on wages.

Thankfully, answering a few practical questions could help you understand what you can realistically afford and feel more confident about the decisions ahead. 

With that in mind, continue reading to discover six questions worth asking yourself that could help you, as a first-time buyer, choose a mortgage.

1. “How much do I intend to borrow?”

Before you can even start comparing mortgages, it’s practical to understand roughly how much you need to borrow. 

This will typically depend on the price of a property and the deposit you have saved.

For instance, if you wish to buy a home worth £250,000 and have a £25,000 deposit, you will need to borrow £225,000. 

However, the amount you want to borrow and the amount a lender is willing to offer may not be the same. 

Lenders will usually take a close look at your:

• Income 
• Regular spending habits
• Debts
• Credit history
• Other financial commitments

They will then use this to determine whether you could still afford the mortgage if interest rates rose or your circumstances changed. 

This is why it can be helpful to prepare a budget long before you begin your search. You may even want to get a “mortgage in principle” – an estimate detailing how much a lender is willing to give you – to provide a rough guide of how much you can secure. 

A mortgage adviser could offer some valuable support at this stage of your journey, helping you visualise how much you can realistically borrow.

2. “What deposit do I have and how could this affect my loan-to-value ratio?”

As well as affecting the amount you can borrow, your deposit also determines your LTV ratio. 

Simply put, this is the amount you borrow compared to the value of the property, expressed as a percentage. 

For example, if you purchase a £250,000 home with a £25,000 deposit and borrow £225,000, your LTV is 90%.

A lower LTV typically means you’re borrowing a smaller proportion of the property’s value, which could give you access to a wider range of deals or lower rates.

Yet, using all of your savings for a deposit may leave you with less room for moving costs or emergencies.

3. “How long do I want the mortgage term to last?”

Your mortgage term is the length of time over which you’ll have to repay the loan. A longer term might reduce the repayments as the debt is spread over more years. 

This could make the mortgage feel far more affordable in the short term. Just remember that a longer term could mean you pay more interest overall.

A shorter term might mean higher monthly repayments, but you could clear the mortgage sooner and reduce the total interest you pay. 

As such, choosing the shortest term possible may not be sensible if it leaves little room for bills or savings.

Just keep in mind that the traditional mortgage term for a first-time buyer is 25 years. However, depending on your age and circumstances, you could secure a 40-year deal.

4. “Would I prefer an interest rate that is fixed or variable?”

The interest rate offered by your mortgage provider affects how much you repay each month. 

With a fixed-rate mortgage, your rate would stay consistent for a set period, such as 2, 5, or 10 years.

This can make budgeting far easier, as you know exactly what your repayments will be over this fixed period. 

However, if the Bank of England base rate falls – which typically acts as a benchmark for providers to set interest rates – you would not benefit until your deal ends.

Conversely, with a variable or tracker-rate mortgage, your rate can rise or fall. This means your rate could decrease if the base rate also falls.

This is a double-edged sword, however, as the rate you pay could also rise, making budgeting more challenging.

5. “Would I pay a mortgage fee if it lowered the interest rate?”

Some mortgage deals might come with certain arrangement or product fees. In some cases, a mortgage with a fee may offer a lower interest rate than a fee-free deal. 

At first glance, the lower rate might look more attractive. Yet, the cheapest interest rate isn’t always the cheapest deal overall.

For instance, if a mortgage saves you £30 a month but charges a £1,000 fee, it may take almost three years for the monthly saving to outweigh the upfront cost.

This is important to consider if you only plan to keep the mortgage deal for a short initial period.

You may also be able to add the fee to your mortgage instead of paying it upfront. While this might reduce your immediate costs, it normally means you pay interest on the fee over time.

6. “Do I intend to overpay my mortgage?”

As the name might imply, “overpaying” your mortgage typically means paying more than your required monthly repayment.

This could help reduce your mortgage balance faster, pay less interest overall, and potentially become mortgage-free sooner.

It might also reduce your LTV over time, improving your options when you eventually come to remortgage.

However, it’s vital to note that some mortgage deals limit how much you can overpay without a charge. 

A common limit is 10% of the mortgage balance each year, although this varies between providers.

If you think you would like to overpay, it’s essential to check the rules before choosing a deal. You may also want to think carefully before using all of your excess cash to reduce your mortgage.

While useful, overpaying might be less suitable if it leaves you without emergency savings or prevents you from meeting other priorities.

Get in touch

We can help you think carefully about the mortgage you can realistically afford as a first-time buyer.

Please contact us today to find out more about how we support you.

Please note:

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Approver Quilter Financial Services Limited. 11/08/2026