Category: Buying a House
Sep 05, 2021
1. Start saving for a deposit
You should start saving up for a deposit as soon as possible if you haven’t done so already. You’ll need to raise at least a 5% deposit, but aiming for 10-20% if possible so you have access to a wider range of mortgage products with potentially lower interest rates.2. Speak to a mortgage broker and get a Mortgage in Principle
Once you’ve started saving towards your target deposit, the next thing to do is speak to a whole of market mortgage advisor. Your advisor will find the most suitable mortgage for your situation and work out how much you’ll be able to borrow.They’ll then help you get a Mortgage in Principle from your chosen lender, which you can use to put an offer down on a property. Request a mortgage in principle.
3. View properties
Once you know how much you’ll likely be able to borrow, and you have a Mortgage in Principle, you can start looking for your dream home! Have a look on websites like Rightmove and Zoopla, and tell your local estate agents what you’re after so they can contact you when a suitable property becomes available.4. Make an offer on a property
The next step is to make an offer – the estate agent will be able to advise you on a ball-park figure but the decision is yours to make and we suggest you do your own research and be prepared to negotiate with the sellers and this is usually via the estate agent.5. Speak to your mortgage broker and apply for a mortgage
If your offer is accepted, feel free to have a mini celebration, but remember that the seller is under no legal obligation at this point to go through with the deal. You may want to ask them to take the property off the market to reduce the risk that someone else will make a higher offer. Then speak to your mortgage broker and formally apply for your mortgage.6. Instruct a solicitor to carry out searches and prepare contracts
You’ll need to find a solicitor (also known as a conveyancer) to handle the legal side of buying a house. Your mortgage broker may be able to put you in touch with a trusted local solicitor.At this point you should instruct your solicitor to carry out searches on the property your buying – this is where they speak to the local authority (and other organisations) to find out further information about the property and the area to make sure there are no surprises that may put you off the purchase.
7. Organise for a survey to be carried out on the property
You’ll want to carry out a survey on the property before exchanging contracts. The aim of a survey is to inspect the property and make sure it’s in good condition, or at least in the condition you are expecting and paying for. There are different types of survey depending on how thorough you want to be. Contact Us to discuss the different types.Your lender will carry out their own survey but as this is only for mortgage purposes, we advise you do get your own independent survey done.
8. Take out Buildings (& Contents) Insurance
You need to have buildings insurance in place by the time you exchange contracts, as you’ll legally be responsible for the property from this date. We recommend also taking out contents insurance at the same time as it’s most cost-effective to do them together.9. Exchange contracts with the seller (via your solicitor)
Now you can start to get excited! Once you exchange contracts you are legally bound to buy the property, and the seller is legally bound to sell it to you. Both parties sign an identical contract, which is exchanged via your solicitors.To exchange contracts you would normally provide your solicitor with 5%-10% of the purchase price (which normally will be your deposit). In some cases this is not possible if your deposit is coming from your house sale but your solicitor will advise you on the next steps.
