1.Decide if buying a home is right for you
Although 86% of people in the UK want to own their own home, it’s not always right for everybody all the time.
There are a number of things you need to think about before setting off on your home hunting quest – not least whether you can actually afford it.
2. Decide if you should sell first
If you are already a homeowner, decide whether you want to sell your house or flat before you buy. It can be riskier in a rising market, but there are upsides. In particular, you will be able to pounce quickly when you do find the home of your dreams, and you won’t be trapped in a housing chain.
3. Decide on your budget
How much do you want to spend? This might be dependent on how much of a deposit you can get together. Don’t forget the variety of one-off and ongoing costs of buying a home. These can put an extra 15% on the cost of your home – more if you are doing serious building or redecoration work.
4. Get your finances in place
If you are a first-time buyer, see our guide to First Time Buyer Mortgages.
Work out how much of a deposit for the mortgage you can get together. Think about savings, the “bank of Mum and Dad”, the “bank of Granny and Grandpa” and how much you would get if you put your current home on the market and paid off your deposit. If you have any savings on a long term deposit that you plan to use, cash them in.
Unless you are a cash buyer, you’ll need to decide what sort of mortgage you want. While you can’t get a mortgage before you buy, you can get a mortgage in principle, which will put you in a stronger position.
A mortgage broker can be particularly helpful if you would like advice on mortgages, to scan the full range of mortgages in the market or if you have special circumstances such as being self-employed. Find out more about our fee free mortgage broker service
5. Decide where you want to live
If you want to move to a new home close to where you already live, there is little to decide
If you want to move to a different part of town, or across the country, then deciding the area is more difficult and time consuming.
This is a very important decision – get it wrong and you will either be unhappy with where you live, or face the costs of moving again.
You may be considering whether to buy a new build or an existing older or period property.
6. Choose a specific property
Once you know the area you want to live, research the properties in that area thoroughly so you get to know the local market well
You then need to butter up local estate agents. See How can I get estate agents on my side?
You need to visit as many properties as possible, and make sure they are no hidden surprises. See Things not to forget when viewing a property and clever questions to ask your estate agent
It’s also important to understand whether the property is freehold or leasehold, and that it is not on a short lease. See buying a leasehold property.
7. Make an offer – and get it accepted
Make sure you are in the strongest possible position as a buyer. Get to the front of the buyers’ queue
Decide how much you want to pay, including for fixtures and fittings. Make the offer to the estate agent, and seal the deal.
You might be asked to pay a small holding deposit of £500 or £1000 to show you are serious. It will be repaid if the sale falls through
Hopefully your offer will be accepted by the seller
Consider whether or not to get Home Buyer’s Protection Insurance
8. Arrange a mortgage lenders
You should ideally have got your finances in place as much as possible before making an offer – see step 4. If so, you now just need to go back to your mortgage company with the agreed offer and complete the process
If you haven’t got your finances in place, you must now scramble to do so as quickly as possible, before the seller loses patience.
If buying with a mortgage, it is also a good time to consider whether life insurance is a good idea
9. Hire a solicitor or conveyancer
Once you have agreed an offer on your house, you need to get a solicitor or conveyancer to handle the legal work to transfer ownership of the property to you. Find and compare conveyancing quotes from regulated and reviewed conveyancing solicitors that cover your area.
Your mortgage company might require you to go with one that is on their panel, which might make the decision for you. Don’t necessarily go with one suggested by the estate agent. Work out how much conveyancing will cost you with our guide and use our handy list of questions to ask your conveyancing solicitor to help make your final choice.
The solicitor or conveyancer will do the searches, such as with the local authority and Environment Agency, to ensure there are not any major problems with the property.
10. Decide if you want a survey costs
Your mortgage lender will require a mortgage valuation by a surveyor, to ensure that the property is good enough to lend against. This is not a proper survey, and will only look superficially at the property
You commission your own survey to evaluate the condition of the property and alert you to any potential problems you will face once you move in. Unless you are very experienced with property, it is usually worth getting a survey done
We outline survey types, survey costs and what to consider in What sort of survey should I have?
11. Arrange a deposit
- Before you can exchange contracts (see step 13), you need to arrange a deposit of 10% of the sale price of the property, and give it to your solicitor or conveyancer
- You should either have the 10% deposit from the deposit you have arranged for the whole property, or might be able to raise it from the sale of your existing home
12. Exchange contracts
- When you exchange contracts with the seller you become legally committed to buying the property – and they are legally committed to selling it do you
- If you pull out after this without due reason, your 10% deposit can be forfeited.
- You should only exchange contracts after you have received the surveyors report, and any necessary action has been taken
- Before you exchange contracts, you need to agree a completion date with the seller, about four weeks after the exchange
- You can only exchange contracts after the solicitor/conveyancer is satisfied with the searches, a formal mortgage offer has been received, and arrangements made for the 10% deposit
You need to ensure that you take out buildings insurance for the property from the date of exchange, as you are responsible for it from then on. Indeed, it is usually a condition of the mortgage that you have buildings insurance in place.
13. Final arrangements and negotiations
You need to negotiate any final things that have not yet been agreed, such as buying the seller’s appliances
You need to make arrangements for the supply of electricity, gas, water and telephone service, and that the seller has got readings made. Often, it is easiest simply to change the account name for the existing suppliers to the property, rather than change suppliers, which you can do at a later date.
Use our moving house check-list to help you plan your move and it is a good idea to consider the best day to move
The solicitor/conveyancer will inform the land registry that they are in the process of transferring ownership of your property
Your solicitor/conveyancer should be liaising with the mortgage company to ensure the money will be ready for completion. You need to ensure that your deposit is also ready, and normally you will pay that to your conveyancer before completion
14. Complete the sale
- Completion is when you pay for the property and take ownership of it, and takes place at a certain time of day – often midday
- On the day of completion, the money is transferred and the deeds of the property are transferred, between each side’s conveyancer
15. Take possession of your new home
- The seller has to leave the property by the time of completion, and you should then be able to collect the keys, normally from the estate agent
- You are now free to move in, or if you are doing any building work before hand, the workmen can now start
- You will need to make normal administrative arrangements for getting permission for parking for removal vans etc.
16. Pay stamp duty and settle up with the solicitor and conveyancer
After completion, your solicitor or conveyancer will send you an account, covering all their costs and disbursements, as well as the purchase price of the house and stamp duty. See how much stamp duty you will pay and when this is due
Your solicitor or conveyancer will normally pay the stamp duty for you, and ensure that the change of ownership is registered with the land registry
There may be a small refund due to you if the solicitor has overestimated the costs.
What is a mortgage?
A person is generally classified as a first-time-buyer if they’re buying their only or main residence, and have never owned a freehold or have a leasehold interest in a residential property in the UK or abroad.
A mortgage is a loan taken out to buy property or land. Most run for 25 years, but the term can be shorter or longer.
You’ll need a minimum 5% of the purchase price as a deposit, and borrow the rest of the money (the mortgage) from a lender such as a bank or building society.
The loan is ‘secured’ against the value of your home until it’s paid off.
If you can’t keep up your repayments, the lender can repossess (take back) your home and sell it so they get their money back.
Mortgage Loan
Securing a mortgage loan is a significant milestone on the path to homeownership. By understanding the types of mortgage loans available, the application process, interest rates, loan terms, and other critical factors, you can make informed decisions and find the loan that best suits your needs. Weatherill Property Group is dedicated to guiding you through the mortgage loan process, offering expert advice and assistance to help you secure financing for your dream home. Start your journey today and take the first step towards owning a property you can call your own.
Types of mortgage
There are many different types of mortgage on the market, and understanding these options will help you make the right choice.
The first thing to think about is the interest rate. You might start out on a fixed rate deal for a set number of years. After this, you will normally be moved to your lender’s standard variable rate. This is unless you transfer to another mortgage with your existing lender, or re-mortgage to a new lender.
Repayment mortgages are the most common, where you make monthly payments for the amount you borrowed and the interest.
The other type of mortgage is known as an ‘interest only’ mortgage. But these aren’t often available unless you’re looking for a buy-to-let mortgage.
Finding the Right Mortgage Lender: A Guide to Securing Your Dream Home Buying Process and House Prices
Securing the right mortgage lender is a critical step towards purchasing your dream home. By evaluating your financial situation, researching and comparing lenders, and considering factors such as interest rates, fees, customer service, and specialized assistance, you can make an informed decision. Weatherill Property Group is committed to assisting you throughout your home buying process and can provide valuable recommendations for trusted mortgage lenders. Take the time to find the perfect lender for your needs and embark on your homeownership journey with confidence.
Understanding Monthly Mortgage Payments: Managing Your Financial Commitment
Understanding the components of your monthly mortgage payments is essential for successful homeownership. By grasping the factors that contribute to your payments and implementing effective strategies to manage them, you can navigate your financial commitments with confidence. Weatherill Property Group is here to support you throughout your homeownership journey, providing expert guidance and resources to ensure a smooth and fulfilling experience.
Help for first-time buyer
There are a range of schemes available to help first-time buyers get on the housing ladder, particularly if you only have a small deposit.
Estate Agent Fees: Understanding the Costs of Professional Property Services
Navigating estate agent fees is a crucial aspect of the property buying or selling process in the United Kingdom. By understanding the different fee structures, negotiating where possible, and considering the range of services provided, you can make informed decisions when selecting an estate agent. Weatherill Property Group is committed to assisting you throughout the property journey, providing expert advice and personalized service to ensure a smooth and successful transaction. Partner with an experienced estate agent and experience the benefits of professional property services.
Conclusion
With these essential home buying tips, you are equipped to navigate the property market confidently and make informed decisions. Remember, patience and due diligence are key throughout the process. By working with reputable professionals, conducting thorough research, and staying organized, you can turn your dream of homeownership into a reality. Weatherill Property Group is here to support you every step of the way, offering expert advice and a wide range of property options. Start your home buying journey today and unlock the door to your future.
You can find more information on our website, Weatherill Property Group
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