Practical steps for buying your first home to becoming mortgage-free

Craig Calder, Secured Lending Director at TSB, shares his practical steps to help you navigate the mortgage maze – from getting on the property ladder to one-day becoming mortgage-free.

Buying your first home is a major life achievement, but it’s also the start of a decades-long financial commitment. And with so much information out there, how do you really know that you’re getting the best deal for you?

At TSB, we saw a 12% increase in mortgage lending in the first quarter of 2025, and with buyer confidence on the up, it’s set to be a year of opportunity for aspiring homeowners.

Many lenders are offering more flexible products, smarter tools and enhanced support to meet the needs of even more customers. So whether you’re working towards that first step onto the property ladder or making the last payment to become mortgagefree, here are a few practical tips to help you on the way:

Getting ready to buy your home

Know your numbers - look at your income and outgoings and make a realistic plan for how much you can save towards a deposit for buying your first home and by when.

Check your credit score - Try not to miss any payments, reduce any other lending where possible as this may help with both affordability and the amount you can borrow, and avoid new credit applications where you can. It’s also worth checking you’re registered on the electoral roll, as it may have a negative impact on your credit score if you’re not. Additionally, any significant changes in your credit profile before applying for a mortgage, such as new debts or missed payments, can negatively affect your credit score and reduce your chances of securing a favourable mortgage rate.

Get a mortgage agreement in principle - with many lenders, this doesn’t impact your credit file and a mortgage in principle (or agreement in principle) will give you a rough idea of what you can borrow based on your current income and credit history. This is really useful to understand what you can afford ahead of putting in an offer on a property.

Do your research - use house comparison sites to monitor the market and find the right location, price and size of property for you and your budget. Be prepared to compromise to make sure you’re able to balance paying your mortgage with living comfortably. For example, you may find it cheaper or be able to afford a larger property if you re willing to compromise and live on the outskirts of your desired location rather than right in the centre or even just a few miles away.

Read our guide on how to save as a first time buyer.

Choosing the right mortgage

Talk to your bank or mortgage expert - by speaking to an expert, you can access more personalised guidance and will have the opportunity to ask any questions to weigh up your options.

Decide whether a fixed or variable rate is right for you - with a fixed rate, you’ll have set, monthly payments that don’t fluctuate over time, while variable or tracker rates can go up or down alongside the Bank of England base rate. A variable rate means your mortgage payments can change. If interest rates go up, your payments will increase, and if they go down, your payments will decrease. This makes your payments less predictable compared to a fixed-rate mortgage, where the rate stays the same. 

Consider the total cost, not just the rate - make sure to take into account any fees (like Stamp Duty, arrangement fees, valuation fees or legal fees) and build that into your budget.

Use our mortgage calculator to give you an idea on how much you can borrow. 

How to Pay Off Your Mortgage

Mortgage Overpayments - Overpaying your mortgage, even by small amounts, can dramatically shorten your mortgage term. Many UK lenders allow you to overpay by up to 10% per year without fees. For example, if your mortgage is £150,000 and you overpay £125 a month, this can knock years off your term and save you thousands in interest. If you cant afford that much in a month, every little helps, so even if you decided to reduce spend on a treat once a week and used that to overpay, over time it will make a difference.

Recalculate Your Monthly Payments - If you receive a pay rise or find yourself with extra funds, consider increasing your monthly payments. Even small increases can reduce the length of your mortgage term.

Use our repayment calculator to work out how much your monthly payments could be on a repayment or interest-only basis. 

How to Pay Off Your Mortgage Quickly: Top Tips

If you’re asking, How can I pay off my mortgage quickly?” here are some ideas to accelerate your payments:

Make Extra Payments - We’ve already discussed overpayments, but did you know that you can also make lump sum payments? Unlike regular overpayments, lump sums are typically one-off payments and would need to be a higher amount, which can have an even greater impact on reducing your mortgage balance and overall interest. However, it s important to remember that most lenders allow lump sum payments of no more than 10% of the loan balance per year, so make sure to check the terms and conditions to understand how early repayment charges are charged.

Switch to a Shorter Term Mortgage - While this may increase your monthly payments, switching to a 15- or 20-year mortgage term (instead of a 25-year term) can significantly reduce your interest payments.

How to Refinance or Remortgage to get a Better Deal

If your fixed rate period has ended, consider remortgaging to a more favourable deal. Rolling onto a standard variable rate (SVR) typically means you ll be paying higher monthly payments, as these rates are often higher than fixed-rate deals. Remortgaging can help you secure a better rate and reduce your monthly outgoings. Look for lowinterest rates or deals with no early repayment charges to ensure you don’t pay extra fees. By remortgaging to a lower rate, you can pay off the loan faster and save money on interest.

You can find out more by reading out remortgaging guide.

How to Become Mortgage-Free Sooner

Becoming mortgage-free is a goal for many homeowners. It s a financial milestone that offers peace of mind and the freedom to allocate funds elsewhere. Here are some key steps to help you get there:

Set a Goal to Become Mortgage-Free - Set a clear target for when you want to be mortgage-free and use it as motivation. Whether it’s 10, 15, or 20 years from now, creating a clear goal helps you stay focused and committed.

Downsize When Possible - If your home is larger than you need, consider downsizing. Selling your current home and purchasing a smaller, more affordable one can free up cash to pay off your mortgage. Plus, the cost of living in a smaller home is usually lower.

Pay Off High-Interest Debt First - If you have other debts, such as credit cards or personal loans, focus on paying those off first. Once these are cleared, you’ll have more disposable income to put toward your mortgage.

Review Your Mortgage Regularly 

In the journey to becoming mortgage-free, it’s crucial to assess your situation regularly:

Review Your Mortgage Deal Every Few Years - Regularly reviewing your mortgage deal ensures you’re not paying too much. If interest rates drop, or you qualify for a better deal, you could lower your monthly payments or reduce your term.

Speak to a mortgage expert who can arrange a convenient time to discuss your mortgage needs via video, telephone or face to face.

Request a Redemption Statement When You re Ready

When you re ready to pay off the final balance and become mortgage-free, request a redemption statement from your lender. This will provide you with the total amount you owe, including any fees for early repayment or admin charges.

Once your mortgage is fully paid off, don’t forget to:

Update Your Property Records - Ensure your mortgage is marked as paid with Land Registry. This confirms that you’re officially mortgage-free and the lender no longer has any claim on your property.

Enjoying Mortgage Freedom

Becoming mortgage-free is a huge achievement. You now have the financial freedom to use your income for other goals, such as saving for retirement, traveling, or investing. Enjoy the security and peace of mind that comes with owning your home outright.

If you already bank with us and need to manage or make changes to your mortgage? We have a full range of FAQs to help. If you re feeling worried about money, you re not alone. Were here to help get in touch today.

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