The home buying process can be anything but smooth, and anything but quick! For first time buyers in particular, knowing what to expect when you embark on the journey of buying a home can be a great help. The below gives a high level overview of the home buying process in England.

1. Save, save and then save a little more!

This really is the first step towards buying your own home. You’ll need at least 5-10% of the property purchase price to put down as a deposit. Ultimately the bigger your deposit the better; you’ll have a smaller mortgage which means paying less interest over the term and it may mean access to a more competitive interest rate….result!

Check out my colleague’s blog which discuss the government saving schemes supporting first time buyers – the Help to Buy ISA and the Lifetime ISA.

2. Mortgage research

I would suggest speaking to a mortgage adviser as soon as you begin thinking about buying your first home. A mortgage adviser can provide a realistic indication as to what you may be able to borrow based on your income and expenditure. This will help you to determine how much deposit you require and the value of properties you could consider. They’ll also be a useful point of contact to have throughout the whole process. You could also visit your bank to discuss your mortgage options and have a look online. Remember that this is likely to be the biggest financial commitment you’ll ever make, so receiving advice can be hugely beneficial and help save you money in the long run.

3. Begin your property search

You’ve probably heard of the following websites and they are are often a good place to start to get a feel for what is out in the market within your budget:

- https://www.rightmove.co.uk/

- https://www.onthemarket.com/

- https://www.zoopla.co.uk/

You should also visit estate agents in areas that you think you’d like to buy. By doing this you’ll get a feel for the local area and you can build a relationship with the agent who may then be able to contact you when properties come to market that fit your criteria, possibly before they appear on the sites mentioned above.

4. Make an offer

Once you have found a property that you like you can make an offer and this is usually done through the estate agent. Sometimes your first offer won’t be accepted but remember that you and the seller are both negotiating for the best price.

5. Instruct your solicitor and apply for the mortgage

Now you’ve had an offer accepted it is time to instruct your solicitor or conveyancer to begin all the legal work. They will be responsible for a number of things including drafting contracts, performing Land Registry & Local Authority searches and checking planning history.

Now is also the time to get in touch with your Mortgage Adviser. Once they have presented their mortgage recommendation to you, they will submit your application to the lender. The lender will be looking to assess the following within a mortgage application:

- You as the applicants: the lender will want to assess a number of aspects of your  situation including: your affordability by verifying your income and existing committed expenditure; your track record with managing money e.g. running a credit check and assessing your bank statements) and the source of your deposit.

- The property: lenders will want to ensure that the property is a suitable security for the mortgage and most do this by conducting a Mortgage Valuation. This is a basic valuation and purely for the lender’s purposes only.

Once a lender has made their assessments and completed underwriting, hopefully you’ll be in the position where you are issued with a mortgage offer along with all the terms and conditions of your mortgage.

6. Arrange a survey

It is highly advisable that you arrange a survey on the property as this can help to avoid hidden costs in the long term. If the survey uncovers problems with the property that creates an additional cost, you could ask the seller to lower the purchase price by that much. There are a number of surveys available:

- RICS condition report – this is the cheapest and most basic survey. These are normally most suitable for new-build and conventional homes in good condition. No advice or valuation is provided in this survey.

- RICS homebuyer report – this is likely to be most suitable for conventional properties in a reasonable condition. This is a much more detailed survey, looking thoroughly inside and outside a property, which also includes a valuation

- Building or structural survey – this is the most comprehensive survey and suitable for all residential properties. This type of survey would be good for older homes or homes that might need repairs.

7. Exchange of contracts

This is when you will sign the contract and exchange with the seller. Usually you’ll be required to put down a deposit which is most likely to be 10% of the total price. At this stage the buyer and seller are committed to the sale, pulling out of the deal now means that you’re likely to lose your deposit.

It is very important that Buildings insurance and Financial Protection policies are in place from exchange of contracts. Your Mortgage Adviser would be able to assist you in making sure you have the necessary provisions in place at this point.

8. Completion

This is the exciting day when you finally become the new legal owner of the property. Your solicitor will be moving the funds across to the seller, after which you will be able to get the keys and will officially be a homeowner! You will need to pay the solicitor their fees and if you are required to pay Stamp Duty this is usually something which your solicitor will arrange.

As you can see, there a number of elements to the process and it may well be a stressful time trying to get everything aligned and sorted. At BSG, our fully qualified Mortgage Advisers strive to take the stress out of the process where we can and are there to support our clients throughout.

If you’re wanting to buy your first home or thinking about moving to your next home, then please get in touch – we would love to help!  Why not try our new Live Chat facility? Message us anytime between 9am and 5.30pm for an instant reply.

We look forward to hearing from you!

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

http://www.bbc.co.uk/consumer/23623491

https://www.moneyadviceservice.org.uk/en/articles/money-timeline-when-buying-property-england-wales--n-ireland

https://www.your-move.co.uk/buy/guides/house-buying-process-england-and-wales