First-Time Buyer in Croydon? Your Mortgage and Property Checklist
Buying your first home in Croydon? Plan your deposit, mortgage application and flat checks with this practical guide from PMS Mortgages.
By PMS Mortgages · Published 14 October 2026 · Meet Ria Ali
Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are a first-time buyer in Croydon, start with two questions: what monthly payment would feel comfortable, and what information do you need about the home itself? A flat near East Croydon, a converted property in South Croydon and a house in Addiscombe can lead to different discussions, even when their asking prices are similar.
This checklist helps you organise those questions before making an offer. It is a starting point for your mortgage conversation, rather than a promise of borrowing or approval. PMS Mortgages provides personal advice from Airport House on Purley Way, with phone and Zoom appointments available.
1. Separate your deposit from your purchase budget
Write down the money available and where it comes from: your savings, money from a family member or another documented source. Then list the costs you expect before and just after moving, including legal work, a survey, removals, initial repairs and any property tax that applies to your transaction. Ask your solicitor to confirm the tax position instead of assuming that every first-time purchase is tax-free.
For an invented example, suppose you have £40,000 available and want to keep £7,000 for purchase costs and a cash reserve. That leaves £33,000 for the deposit. On a hypothetical £330,000 purchase, the mortgage needed would be £297,000 before any fee added to the borrowing. This is arithmetic, not a lender offer, and the £7,000 is an assumed budget rather than an estimate of your costs.
Use your own figures and check what they include. A deposit percentage means little if using that money leaves you unable to pay the other bills involved in buying.
2. Agree a monthly budget before chasing a maximum loan
A lender’s affordability assessment and your preferred household budget answer different questions. Record your regular commitments, travel, childcare and existing credit payments. Allow for the running costs of the property you hope to buy, rather than carrying over your current rent-and-bills total unchanged.
For a flat, include the service charge and other confirmed costs. For a house needing work, identify what must be repaired immediately and what can wait. Explain future changes such as parental leave, a new job or a different commuting pattern. A maximum borrowing estimate does not tell you whether a payment will leave enough room for the life you want after moving.
3. Prepare the income and deposit evidence
Start with a clear summary of your work arrangement and the documents you already have. An employed applicant, contractor and company director may need different evidence. Your adviser will confirm the lender-specific requirements; avoid assuming that one standard list applies to every application.
Identity and address information requested for your case.
Income documents matching the way you are paid.
Deposit evidence and details of any family contribution.
A record of loans, credit cards and regular commitments.
The full property address, asking or agreed price and property type.
If you receive variable income, explain the pattern instead of highlighting only your strongest month. If part of the deposit is a gift, raise it early and read our gifted deposit guide. A family promise and money supported by the required evidence are different stages of preparation.
4. Understand what an agreement in principle does
An agreement in principle can help you organise a property search and demonstrate that you have started considering finance. It is not the final mortgage offer. The full application involves the actual property and further assessment of the information supplied.
Ask which checks have been completed and what remains outstanding. Confirm the document’s validity and tell your adviser if your circumstances change. Avoid treating a preliminary figure as confirmation that every flat or house at that price will be accepted.
5. Ask the right questions about a Croydon flat
Gather the lease term, ground-rent terms, service-charge information and any known major works. If relevant, ask what building-safety documents are available. Your solicitor investigates the legal position, while the proposed lender decides whether the property meets its requirements.
Send the information early, especially for a new build, converted flat or building with unusual features. A mortgage valuation is for the lender’s purposes and does not replace a survey you choose to commission. Ask the surveyor and solicitor which investigations are appropriate for the property.
6. Test the practical fit of the location
If being near East Croydon or West Croydon station is a priority, check the actual route from the property. Walk the journey where possible and compare the day-to-day costs alongside the mortgage. A neighbourhood name in an advert does not explain the distance, route or running costs of the individual home.
For a wider search, compare your priorities across Purley, South Croydon and Coulsdon. Keep a short property comparison sheet showing price, tenure, ongoing charges, travel and immediate work. It makes the trade-offs easier to discuss.
7. Compare the mortgage on a consistent basis
Look at the initial deal period, fees, repayment method, term and conditions as well as the interest rate. Ask whether a product fee is paid upfront or added to the mortgage. Consider planned moves and overpayments when discussing flexibility. A smaller initial monthly payment does not, on its own, establish the most suitable deal.
Use our mortgage repayment calculator to explore illustrative payments, then discuss the result with an adviser. A calculator cannot confirm lender eligibility or approval for the property.
8. Check what stamp duty you will pay
In England, first-time buyers pay no stamp duty on the first £300,000 of a purchase and 5% on the portion between £300,001 and £500,000. If the price is above £500,000, the relief does not apply and standard rates are charged. Use our stamp duty calculator to check your figures before you make an offer.
9. Decide how much deposit you need
Mortgages are available with a 5% deposit, but fewer lenders offer them and some limit lending on new-build flats. A 10% deposit widens the choice of lenders, and rates usually improve again at 15% and 25%. Your deposit can come from savings, a gift from family supported by a gift letter, or a Lifetime ISA, subject to its rules. See our gifted deposit checklist.
10. Budget for the costs beyond the deposit
conveyancing and search fees;
a survey, which is separate from the lender’s valuation. See mortgage valuation vs survey;
any lender arrangement fee and our broker fee, which we explain before you proceed;
removals, furniture and a cash buffer for the first months.
11. New-build and shared ownership homes
New-build flats are common around central and East Croydon. Some lenders apply lower loan-to-value limits to new-build flats and treat developer incentives as a reduction in the price. Mortgage offers also have a validity period, so check the expected completion date.
Shared ownership lets you buy a share of a home and pay rent on the rest. Fewer lenders offer shared ownership mortgages, and the rent and service charges are included in affordability, so check the full monthly cost.
12. Ask whether family can help in other ways
Some lenders offer joint borrower sole proprietor mortgages, where a parent’s income helps you borrow more but only you own the home. Parents usually need independent legal advice. We can explain whether this, a gifted deposit or another option suits your family.
13. Know what you can afford before you view
Lenders calculate borrowing differently, so get a realistic figure early. Our guide to how much you can borrow in Croydon explains how lenders assess affordability, and our first-time buyer mortgage advice page explains how we help.
Your first mortgage conversation with PMS
Bring your income summary, deposit plans, preferred payment and property details to a first-time buyer mortgage appointment. We can explain the next steps, relevant lender requirements and our fees before you proceed. Book a consultation or explore our Croydon mortgage broker guide.
General information for buyers in England. Mortgage availability and suitability depend on the applicant, property and lender assessment. Take transaction-specific legal advice on the purchase.
Sources and further reading
Frequently asked questions
No. A full mortgage application still requires checks on the applicant, income, credit history and property. The lender must approve the actual case.
Keep purchase costs and a realistic cash reserve separate when planning your budget. Your adviser can compare deposit options alongside the monthly payment.
Ask for the lease term, service charges, ground rent, planned major works and relevant building-safety information. Your solicitor and lender have different checks.
Thinking about your own mortgage?
Speak to an adviser about what this means for your situation. There is no charge for an initial conversation.