Buying a house essentially boils down to five specific actions. You save a deposit of at least 5%, you get a decision in principle from a lender to prove you have money, you find a property in a neighbourhood like Hampton or Stanground, you make an offer the seller accepts, and then you hand everything over to solicitors to handle the legal transfer. It sounds incredibly simple when I write it like that. I wish it was that linear. The reality is usually a bit messier and involves a lot more coffee than you probably drink right now.
I have been through this process. It is stressful but it is also exciting. If you are looking to buy in Peterborough right now, you are actually in a decent spot compared to a few years ago. The market is recovering and there are some solid opportunities if you know where to look. Let’s walk through this properly.
Check Your Affordability First
Before you even open a property app you need to know what the numbers look like. It is pointless falling in love with a three-bed detached house if the bank is only going to lend you enough for a two-bed flat. I made this mistake years ago and it hurts.
Lenders have a specific way of looking at you. Generally speaking, you can borrow between 4.5 and 5 times your annual salary. So if you are earning £40,000 a year, you are likely looking at a loan of somewhere between £180,000 and £200,000. That is your ballpark.
But it is not just about the multiplier. Lenders run stress tests. They want to see if you can still afford the repayments if interest rates shoot up. They look at your debts too. If you have a car on finance or a chunky credit card balance, that reduces what they will lend you. Ideally, your debt-to-income ratio should be low. 20% to 30% is good. Anything over 50% is going to cause you headaches.
You also need to apply the 28% rule to your own budget. Your mortgage payment should ideally not be more than 28% of your gross monthly income. If you bring in £3,333 a month, try to keep the mortgage under £933. It leaves room for living, which is quite important.
Get a Mortgage in Principle
This is the step that makes you a “real” buyer. Estate agents will not take you seriously without it. A decision in principle is basically a certificate from a lender saying they are willing to lend you a certain amount based on a quick check of your finances.
Navigating the various lenders and interest rates can be tricky for a first timer. The market shifts fast. To ensure you get access to the best possible deals, it is wise to consult a mortgage advisor Peterborough based expert. They can assess your finances and explain the different types of mortgages available. They also manage the application process on your behalf which saves you a massive amount of paperwork.
With your funding secured you can move on to viewing homes with confidence.
Things are looking better recently. We saw interest rate cuts in May 2025 of about 0.25%. That might sound small but it matters. It has led to some 2-year fixed deals dropping below 3.5%. That puts more money in your pocket every month.
You should also know about the Mortgage Guarantee Scheme which is now called Freedom to Buy. It is a permanent scheme now. It allows you to get a mortgage with just a 5% deposit on houses up to £750,000. This is huge if you are struggling to save that massive 10% or 15% chunk.
Finding the Right Area
Peterborough is deceptive. It seems small but the neighbourhoods vary wildly. You have places like Hampton which are full of new builds and lakes and families. It is very popular. Then you have the city centre which is great if you want to be near the train station for the London commute.
I think you need to walk these areas. Don’t just drive through.
Walk around at 8pm on a Friday. That tells you more about a street than a midday viewing ever will. Are the cars parked on the pavement? Is it noisy? Use your gut instinct.
When you view a property, ignore the furniture. Look at the boiler. Ask how old it is. Look at the windows. Are they double glazed? Check the corners of the ceiling for damp spots. These are the things that cost money to fix. I once bought a place and didn’t check the water pressure in the shower. I regretted that every single morning for three years.
If you are looking at older Victorian terraces in the city, check the brickwork. If you are looking at new builds in the townships, check the service charges. Sometimes there are hidden fees for maintaining the green spaces.
Making an Offer
This is the nerve-wracking part. You found the house. You want it. Now you have to haggle.
Don’t just offer the asking price immediately unless the market is on fire. Start a little lower. But be realistic. If a house is on for £250,000 and you offer £200,000, you are just going to annoy the seller. They might not even want to deal with you after that.
Call the estate agent. Tell them your offer. Tell them why you are a good buyer. You are a first-time buyer. You have no chain. You have your Agreement in Principle ready. You can move fast. Sellers love that. They hate uncertainty.
Sometimes it takes a few back-and-forth phone calls. That is normal. Don’t take it personally if they say no to your first number.
Once they accept, ask them to take the property off the market. You don’t want someone else swooping in with a higher bid next week. That is called gazumping and it is technically legal in England until contracts are exchanged. It is awful but it happens.
The Legal Heavy Lifting
Now you need a solicitor or a conveyancer. Do not pick the cheapest one you find on Google. I cannot stress this enough. A bad solicitor will delay your move by weeks or months. They won’t answer the phone. They will lose emails.
Ask friends for recommendations. Or ask your mortgage broker if they know a good local firm. Local knowledge helps here too because they will know about specific issues in Peterborough like drainage searches in the Fens or specific covenants on new estates.
Your solicitor does the heavy lifting. They check the title deeds. They run searches to make sure a motorway isn’t being built through the back garden. They handle the transfer of funds.
You will need to pay for these searches upfront usually. It can cost a few hundred pounds. It feels like money for nothing but it protects you from buying a house that is legally unneccessary or problematic. Wait, I mean legally compromised. You get the idea.
This phase takes time. Usually 8 to 12 weeks. It feels like nothing is happening for ages and then suddenly everything happens at once.
Exchange and Completion
This is the finish line.
Exchange of contracts is the point of no return. Up until this moment, either you or the seller could pull out. Once you exchange contracts, you are legally bound to buy the house. You pay your deposit to your solicitor & they send it to the seller’s solicitor.
If you pull out after this, you lose your deposit. If they pull out, you can sue them.
Then comes Completion Day. This is usually a week or two after exchange, though sometimes it happens on the same day. On this day, your mortgage lender sends the rest of the money to the solicitor.
You sit by your phone waiting for the call. usually around midday. The estate agent calls and says “You can pick up the keys.”
That feeling of walking into an empty house that you actually own is hard to describe. It smells like potential. And probably a bit of dust.
Why Use a Local Broker
I mentioned this earlier but it is worth repeating. You might think you can just use a comparison site. And you can. But a computer algorithm doesn’t know the nuances of the local market.
A local specialist knows which lenders are comfortable with the types of construction used in certain parts of the city. They know which lenders are faster at processing applications right now.
Also, if your situation is slightly complex, maybe you are self-employed or you have a small gap in your employment history, a human advisor can argue your case to an underwriter. A website can’t do that. It just says “computer says no”.
They also help with the paperwork. The amount of documentation required is significant. You need 3 months of bank statements. Payslips. P60s. ID. Proof of deposit. If you are self-employed you need SA302s for the last two years. It is a lot to organise.
Improving Your Chances
If you are worried about approval, look at your credit file now. Use a service like Experian or ClearScore. Make sure you are on the electoral roll at your current address. That is a quick win.
Stop applying for other credit. Don’t take out a new phone contract two weeks before you apply for a mortgage. It leaves a footprint.
The Bottom Line
Buying your first home in Peterborough is a big move. It is probably the most money you have ever spent. It is normal to feel anxious about it. I remember staring at the ceiling the night before I transferred my deposit, wondering if I was making a huge mistake.
But owning your own place gives you a freedom renting never can. You can paint the walls whatever colour you want. You can get a dog without asking for permission. You are paying off your own asset, not someone else’s investment.
Take it one step at a time. Get your finances clear. Get good advice. And don’t rush into a house that doesn’t feel right. There will always be another one.
