Buying a house is one of the most significant investments you will ever make. This guide walks you through the process of purchasing a home in England, from initial considerations to closing the deal. Whether you’re a first-time buyer or looking to move, these steps will help you navigate the property market with confidence.
You’ll note that we specifically stated England. The home-buying process is different in other areas of the UK, and we recommend you seek advice if you are looking to purchase a home in Scotland, Northern Ireland, or Wales.
1. Assess Your Finances
Calculate Your Budget
Deposit: Typically, you need at least 5-20% of the property price.
Mortgage: Most buyers will need a mortgage. Use online calculators to get an idea of how much you can borrow.
Other Costs: Include stamp duty, legal fees, surveys, and moving costs.
Check Your Credit Score
A good credit score can secure better mortgage rates. Obtain your credit report from agencies like Experian or Equifax and address any issues.
Save for a Deposit
Open a dedicated savings account, possibly a Help to Buy ISA or Lifetime ISA, which offers bonuses for first-time buyers.
OR
Put Your Current Property Up For Sale
It’s crucial that you are proceedable as a buyer, so if you already have a home you intend to sell to move, you should ensure it is on the market before starting your next property search. If you are not on the market, vendors of homes you are looking to buy are unlikely to take you seriously and may even refuse to let you view them until your current property is up for sale. Vendors want proceedable buyers, and getting yourself into the best position is essential, starting with listing your current property.
2. Understand the Market
Research Locations
Consider factors such as proximity to work, schools, amenities, and transport links. Visit towns and villages at different times of the day to get a feel for the area.
Understand Property Types
Detached: Standalone house, more privacy.
Semi-detached: Shares one wall with another property.
Terraced: Part of a row of houses.
Flats/Apartments: Units within a larger building, often with shared amenities.
Market Conditions
Understand current market trends. Are prices rising or falling? Is it a buyer’s or seller’s market? Speak to an estate agent who can help you understand the current conditions and check out sites like Rightmove, which publish market data monthly.
3. Get Your Finances in Order
Mortgage Agreement in Principle
Secure a mortgage agreement in principle from a lender. This is a conditional offer that indicates how much they might lend you.
Choose a Mortgage
Consider fixed-rate vs. variable-rate mortgages. Compare deals from different lenders and use a mortgage broker who is whole of market to help you find the best option for you.
4. Start House Hunting
Make a Wish List
Prioritise your needs and wants. Consider the number of bedrooms, garden size, parking, and potential for future extensions. You should be prepared to compromise on your list of wants and needs as often the perfect property doesn’t exist.
Online and Offline Search
Use property websites like Rightmove, Zoopla, and local estate agents to find properties. Attend open houses and arrange viewings. Keep an open mind and look at all properties that match your basic criteria because it will change as your search goes on.
Viewing Properties
Take notes and photos during viewings. Ask questions about the property’s history, any renovations, and the town or village.
5. Making an Offer
Negotiation
Don’t be afraid to negotiate. Make an offer you feel comfortable with and be prepared to increase if need be.
Formal Offer
Once you and the seller agree on a price, your offer is formally accepted. This is typically done through your estate agent.
This is the start of the process of buying the property.
6. Legal Process
Hire a Conveyancing Solicitor
They will handle the legal aspects, such as property searches, contract exchange, and registration with the Land Registry.
Property Survey
Commission a survey to identify any structural issues. Types include:
Valuation Survey: Typically required by banks when taking a mortgage to make sure it’s worth the price you are going to pay.
Condition Report: Basic, suitable for new build homes but may not be accepted by lenders.
Homebuyer Report: Detailed, highlights potential issues. The recommended level 3 survey
Building Survey: Comprehensive, for older or unusual properties.
Finalise the Mortgage
Complete your mortgage application. The lender will conduct their own valuation of the property.
Exchange Contracts
Once the survey and legal checks are satisfactory, you exchange contracts. At this point, the sale becomes legally binding, and you’ll need to pay your deposit.
7. Completion
Pay Fees
Settle any remaining fees, including stamp duty, solicitor fees, and moving costs.
Completion Day
On completion day, the remaining purchase price is transferred to the seller, and you receive the keys to your new home from the estate agent.
8. Move In
Prepare for the Move
Arrange for moving services. Pack your belongings, label boxes, and prepare an essentials box for the first few days in your new home.
Notify Change of Address
Inform necessary parties, including utilities, banks, and the post office, about your change of address.
Call all utility and service providers at your new home to let them know you are the new owner.
Enjoy Your New Home
Take time to settle in, explore your new town or village, and gradually make the house your own.
Buying a house in England involves several steps, each crucial for securing your dream home. By understanding the process and being well-prepared, you can make informed decisions and navigate the property market with ease.
Happy house hunting!