But Which? is here to help. Unfortunately, we can't make mortgage rates any cheaper, but we can help you get your head around the process, from saving to applying.
Read on to learn about the 12 key things you need to know about getting your first mortgage.
1. How healthy your credit report is
One of the first steps in applying for a mortgage is to check your credit report.
There are three main credit agencies: Equifax, Experian and Transunion. You can get a basic credit report from each for free, or pay for a more in-depth report.
Each agency will give you a score, but this isn't the most vital thing. The most important thing is to check that all the information on your report is correct.
This includes being on the electoral roll at your current address, and ensuring there are no errors (e.g. incorrect defaults on old accounts).
Find out more:2. How much you'll need for a deposit
To qualify for a mortgage, you'll almost always need at least 5% of the property's value as a deposit. So for a £250,000 property, you'd need at least £12,500.
3. How much you might be able to borrow
Lenders usually allow you to borrow up to four-and-a-half times your annual household salary.
So if you're buying with a partner and you collectively earn £50,000, that would be £225,000.
This can vary, depending on the lender, the type of deal and your financial circumstances, including any existing debt commitments.
Find out more:4. What's happening to house prices
House prices flatlined last year, as high mortgage rates locked many people out of moving.
Rates still haven't come down significantly, and this remains a big barrier to getting on to the property ladder.
However, a slower market may give you greater negotiating power. A chain-free and mortgage-ready first-time buyer can be an attractive proposition to a seller.
Find out more:5. The jargon you'll encounter
As with all financial products, mortgages come with a baffling array of jargon.
The good news is it's easy to find jargon busters online that simply set out the key phrases you'll need to know.
As a starting point, here are some of the most common words and phrases we encounter:
Revert rate/standard variable rate: APRC: Guarantor: Arrears:6. That you can get an agreement in principle
Getting a mortgage can be complicated, but you can get a simple indication of whether a lender might be willing to offer you a loan.
Most banks and larger mortgage brokers offer an agreement in principle (AIP), sometimes called a decision in principle (DIP).
You'll fill in a form about your earnings and outgoings and the lender or broker will conduct a 'soft' check on your credit report to see if you're likely to meet their criteria.
An AIP gives you the confidence to go ahead and view properties knowing there's a decent chance a full application will be successful.
A full application won't usually be submitted until after you've had an offer accepted on a property.
Find out more:7. The rates currently on offer
Mortgage rates are high at the moment, so where you might have got a 90% or 95% deal with a rate of around 3% a couple of years ago, you'll now be looking at around 5%.
There are hopes that mortgage rates will begin to fall later this year, with the Bank of England expected to cut its base rate.
8. That rates aren't everything
As borrowing costs have increased, mortgage lenders have bunched their rates closely together.
Headline-grabbing deals appear from time-to-time, but they tend not to last long, as any lender that offers a particularly cheap rate is quickly inundated with applications.
With little to choose on initial rates, it's important to look at the other costs and incentives involved with mortgages.
Up-front fees: Cashback: Free legals:9. That your bank might not be the best option
You might be tempted to go to your bank in the first instance, believing you'll be more likely to be accepted by a lender with which you have a long-term relationship.
However, it's highly unlikely your bank will offer the best deal, in a market where more than 50 mainstream mortgage lenders are competing against each other.
You might also think it'll be easier to apply directly to your current bank, especially if the application process is a bit overwhelming. If this is the case, you might be best speaking to a mortgage broker, who can find you a suitable lender and guide you through the process.
Find out more:
10. That you might need to consider a 'marathon' mortgage
Many first-time buyers are taking out so-called 'marathon' mortgages lasting 35 years or longer.
Borrowing for longer may help you meet the lender's affordability requirements, and will reduce the amount you pay each month. There is also the option to cut your term down via overpayments. However, the big caveat is that the longer the term, the greater the amount you'll pay in interest.
11. The documents you'll need to get together
Once you've had an offer accepted on a property, it'll be time to submit your formal mortgage application.
There's quite a lot of admin involved in this. You'll need to get together lots of documents, and in most cases you'll need the originals.
Documents required include proof of ID, proof of address, financial statements (current account and any credit cards/loans), and proof of employment.
12. That help is at hand
As we mentioned earlier, you don't have to go through the mortgage application process alone.
Most brokers are fee-free for applicants, so if you're unsure about anything we've mentioned in this article, or want someone else to find you the best deal, it's worth contacting a broker.
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