Buying guides
A Guide for Buyers
If you are thinking of buying a property, this guide walks you through the key parts of the process to help ensure it runs as smoothly as possible.
Financial preparation
Budget
What budget do you have in mind for your home? There are various ways to work out how much you can afford to spend on your mortgage and insurances, including writing down all your outgoings and expenses. A mortgage adviser can help you work through your budget and understand what government support you may be eligible for. Contact us if you would like a recommendation.
Deposit
Do you have enough money saved for your deposit? You are likely to need at least 5% of the purchase price as a deposit. However, if you can save more, you can often get a cheaper mortgage.
Mortgage
How much could you borrow? Use our mortgage repayment calculator to see what your repayments would be at different interest rates, or talk to a reputable mortgage adviser who can discuss the criteria different lenders use.
Credit score
Your credit score could affect your mortgage borrowing ability. You can check it online through services such as Experian's Credit Expert, and improve it by registering to vote, keeping credit card utilisation low and managing existing finance well.
Searching for your property
Property type
Do you know what type of property you want? Think about whether you want a new build or 'second-hand' home, whether you're happy to be attached to another property, how many bedrooms you need and whether you need a garden or garage.
Tenure
Before buying, check whether the property is freehold or leasehold. With a freehold you generally own the property and the land it stands on. With a leasehold you own the property for the remaining term of the lease and may have additional costs or restrictions, such as service charges and ground rent. For leasehold properties, pay particular attention to the length of the lease, ongoing charges and any restrictions, as these can affect your costs, mortgage options and the property's future value.
Location
Do you want to live near work, friends or the gym? Think about the future too — will you need to consider schools, transport routes and other amenities?
Mortgages
Mortgage process
When you have an initial assessment with a mortgage adviser, they will review your needs and current circumstances, and look for a suitable mortgage deal from a lender.
Agreement in principle
They will help you apply for an agreement or mortgage decision in principle. This is written confirmation of a lender's intent to provide funding subject to certain conditions being met, but it is not a formal mortgage offer.
Mortgage application
When you find a property and make an offer, you will need to make a full mortgage application to the lender.
Viewing properties
State of repair
Does the property require updating? If so, is it minor cosmetic work or more major structural improvement? If you really like a property, it may be worth asking a builder to view it with you on a second viewing. They can help identify damp, mould, cracks or damage and estimate repair costs, which may be useful when negotiating on price.
Property size
Are the rooms big enough — for now and for years to come? Do you need one or two bathrooms? Is there sufficient storage, and if not, could extra space be added?
Running costs
Ask to see the current bills — council tax and utilities — to get an idea of the actual cost of living there.
Location
If you've done your research, this should simply be a case of checking the property against your criteria. Could you see yourself living there?
Making an offer
Initial offer
This is where you put forward a price you would like to buy the property for, to the estate agent acting on behalf of the seller. The agent will put your offer to the seller and the property becomes 'under offer'.
Revised offer
If your offer is rejected, you could make another, higher offer if your budget allows.
Offer accepted
Once your offer is accepted you can proceed with the purchase and your mortgage application. The property is usually taken off the market at this point and becomes 'sold subject to contract'.
Legal process
Conveyancing
This is the legal work necessary when buying a property. It can involve local searches to check there is no major work due nearby, and ensuring the property and land are legally owned by the current owners with the boundaries as claimed. We can put you in touch with a legal firm to handle the conveyancing.
Exchange and completion
You are legally bound to the purchase at exchange of contracts and may be required to pay a deposit. Ownership passes to the buyer on completion, at which point the money is transferred to the seller's solicitor and the deeds to the purchaser or their mortgage lender.
Protection
You will need to arrange home insurance. Buildings insurance is usually required as a condition of the lender if you are taking out a mortgage. Contents insurance is unlikely to be a requirement but is advisable to protect your belongings against accidental damage, loss or theft.
Preventing property fraud
Conveyancing fraud
Conveyancing fraud usually occurs on the day of completion. Fraudsters send a spoof email mimicking the parties involved in the transfer of money — usually the conveyancing solicitor — aiming to persuade the buyer to pay into a different bank account owned by the fraudster. Always call your solicitor on a known number to confirm bank details before transferring any payment.
Property title fraud
Property title fraud is when criminals steal a property owner's identity, or use false documents, to illegally transfer a property into their name by fraudulently updating HM Land Registry details. Once ownership is transferred, the fraudster can sell the property or raise a mortgage against it. Properties empty for long periods can be more susceptible. You can set up property alerts via HM Land Registry or place a restriction on the property to help prevent it.
Ready to take the next step?
Speak with the team about a valuation, a viewing or anything else on your mind.