So you’ve woken up one day and decided that becoming a homeowner now takes your fancy. In this series of articles, we will lay out the good, the bad, and the ugly of buying your first home. Drawing from our own experience, our goal is to support you from a curious “future homeowner” right through to congratulating you on the day you collect your keys.
So who are we?
We are The Mortgage Pod, an independent mortgage broker with a team demonstrating over 35 years of experience in mortgages, protection, and everything home buying. You may wish to refer to us as your additional knowledge hub or support throughout your entire home buying journey.
When you are ready, you can get started here or feel free to explore the rest of our articles.
So, let’s start with the basics. Here are a few questions that you’re most certainly going to want to know:
How long does it take to buy a house?
Many different factors affect the exact timeline for buying a property, but as a rough estimate, it’s takes around 10-12 weeks from having an offer accepted on a property to completing the purchase and collecting your keys.
It’s not uncommon for the process of buying a property to extend beyond 12 weeks however, especially if the property is leasehold, (such as a flat) rather than freehold (like a house), or if there is a chain involved. And if there are both? Well, that’s unlikely to complete in 10 weeks, if you require a mortgage.
A property chain occurs when the seller of the property you wish to buy needs the proceeds from their sale to fund their onward purchase, requiring simultaneous completion on the same day, known as a “chain”.
What can I do to prepare to buy a house?
This step is often overlooked by new homebuyers, but we believe it is very important.
Check your credit report
It’s super important to understand what information banks, lenders, and other financial institutions hold about you. Being one step ahead and knowing the information the lender is about to see can be invaluable. You can obtain a free copy of your credit report from our recommended provider, here.
Electoral role
Ensuring you are registered on the electoral roll at your current address can not only boost your credit score but also provide lenders with additional reassurance regarding your identification, thereby improving your chances of securing a mortgage.
Tidy up your finances
Now that you’ve had the opportunity to review your credit report, we recommend tidying it up! Close old credit cards that haven’t been used in years, pay off any outstanding £50 overdrafts, and ensure any outstanding bills have been settled.
Taking care of these small details can make a big difference to your mortgage application.
Save more towards your deposit
Unless you are in the fortunate position of being able to purchase property with cash, we assume you’ll want to continue reading. The larger the deposit you can provide, the lower the interest rate or overall cost your mortgage is likely to be. Additionally, a larger deposit may lead to more flexible eligibility criteria and less requirements.
What are the costs involved in buying a property?
Mortgage
Mortgage products can be complicated. Some have product fees, while others do not. Some include valuation fees, and some even offer cash back! The best way to compare different mortgage products is with the help of an experienced mortgage broker. At The Mortgage Pod, we know exactly what to look for and assure you, we are always clear, simple, and transparent with all costs.
Legal Work
When buying a property in the UK, you need a solicitor. Just like the various fees and charges associated with mortgage products, the legal side can be equally confusing. The main legal fee to consider is the conveyancer’s or professional solicitor’s fee for their service, but there are also additional third-party costs such as disbursements and searches. Any conveyancer recommended by The Mortgage Pod will provide a full breakdown and clear cost for the total process. We believe in transparency, so there are no hidden fees where we come from. If you want to see an accurate breakdown, you can get started with our team here.
Property Survey
There are three different levels of valuations or surveys:
Level one: A basic valuation for the lenders benefit only,
Level two: Often know as a Homebuyers report, provided the home buyer some peace of mind.
Level three: This is a comprehensive full building survey. The very best.
Each level is more comprehensive than the last, with the surveyor spending more time inspecting the property. However, this also means a higher cost. The exact costs depend on the valuation of the property.
You can get more information about the different types of property surveys here. Or feel free to try our FREE survey quoting tool by clicking the button below.
Removal/moving costs
If you are moving from a rental property or from your family’s home, chances are you already have a house full of furniture! Remember to consider the costs of any removal services required so you can budget from the outset.
How do I know what my budget is?
Once you have a good idea of the basics and what’s involved, it would be a great idea to start a discussion with a mortgage broker. A professional mortgage broker, such as our team here at The Mortgage Pod, will give you a comprehensive understanding of your options, the costs involved in your specific circumstances, and any other information we feel you can benefit from.
You can get started with our team here.
Do I need to use a mortgage broker?
The question “Should I use a mortgage broker or go directly to my bank?“ has been debated for many years. The answer to the question is choice. You always have the choice. To help you decide whether the services of a mortgage broker are right for you, we recommend reading our guide on “the differences between a bank and a mortgage broker”.
How can The Mortgage Pod help me to buy my first home?
Our friendly team here at The Mortgage Pod can assist you in many ways:
- With over 20 years of combined industry experience, our team of experts has likely encountered a similar scenario before.
- We specialize in holistic support and guidance, from the very first conversation with us to the day you collect your keys. We will be here with you every step of the way on your journey, including celebrating when you collect your keys!
- We will provide you with a detailed breakdown of all costs associated with your circumstances and advise you on which mortgage deals you are likely to secure.
- We are available to chat via email, phone, or WhatsApp at flexible times. Rest assured, we won’t disappear on you.
To contact our team today, just tell us what you would like to do:
Frequently asked questions about the home buying process
What questions should I ask an estate agent?
It’s good idea to understand the property’s sales history, how long as it been on the market and have any other sales fallen through. You can also ask about the maintenance or repairs of the property.
How should I choose a mortgage broker to work with?
Speak to a few, get a feel for their process and enthusiasm towards helping. It would also be recommended to read their google reviews. You can see ours here.
Do I need to speak to the estate agents mortgage advisor to make an offer on a property?
No, you do not. Estate agents will request some basic information from you, such as your Agreement In Principle but it is not compulsory for you to talk to their mortgage broker if you chose not to.
Do I need a solicitor to purchase a property?
Yes. When buying a property in the UK, you need a legal reprehensive such as a conveyancer or solicitor to help you.
What is the first step involved in buying a property?
We strongly suggest talking to an experienced mortgage broker as early as possible during the home buying process. You can contact a professional mortgage adviser at The Mortgage Pod here.