An Introduction to the Home Buying Process
So you’ve woken up one day and decided that becoming a homeowner now takes your fancy. Great!
In this 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.
This step by step guide will help you understand the home buying process so you can make informed choices.
So Who Are We?
We are The Mortgage Pod, an 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. We help buyers navigate everything from credit checks and affordability assessment to arranging viewings, understanding mortgage costs, and working with local estate agents.
When you are ready, you can get started here or feel free to explore the rest of our articles for more detailed information on each stage of the buying process.
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 takes around 10–12 weeks from having an offer accepted on a property to completing the purchase and collecting your keys.
This includes time for your mortgage application, legal searches, mortgage valuation, and arranging buildings insurance.
It’s not uncommon for the process of buying a property to extend beyond 12 weeks, 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, especially if you require a mortgage. Your conveyancing solicitor will help manage timelines and work toward your completion date.
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. Preparing properly can help you avoid extra costs and delays later. Here’s a few tips you can follow:-
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 for your mortgage application.
You can obtain a free copy of your credit report from our recommended provider here, which will help identify any issues before you apply.
Electoral Roll
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, improving your chances of securing a mortgage deal.
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 overdue bills have been settled.
This will make a big difference to your affordability assessment and how your lender views your financial situation.
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 mortgage rates or overall cost your mortgage is likely to be.
A larger deposit may also open access to your own range of mortgage products with more favourable terms, especially if you’re a first time buyer or self employed.
What Are the Costs Involved in Buying a Property?
Mortgage
Mortgage products can be complicated. Some have product fees or reservation fees, while others do not. Some include valuation fees, and some even offer cashback. 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 mortgage costs.
Legal Work
When buying a property in the UK, you need a solicitor or conveyancing solicitor. Just like the various fees associated with mortgage products, the legal side can be equally confusing.
The main legal fee to consider is the solicitor’s fee for their service, but there are also additional third-party costs such as disbursements, legal searches, transfer fees, indemnity insurance, and stamp duty.
Any legal professional recommended by The Mortgage Pod will provide a full breakdown of all legal costs and detailed information on each step.
Property Survey
There are three different levels of valuations or surveys:
Level one:
A basic valuation for the lender’s benefit only.
Level two:
Often known as a Homebuyers Report, providing the homebuyer some peace of mind.
Level three:
This is a comprehensive full building survey, sometimes called a snagging survey on a new build property.
Each level is more comprehensive than the last, and the surveyor spends more time inspecting the property, identifying major works if needed. The exact survey report cost depends on the purchase price and property value.
You can get more information about the different types of home surveys here or try our FREE survey quoting tool online today.
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 budget for any removal services or extra costs associated with moving day so you can cover all expenses from the outset.
How Do I Know What My Budget Is?
Once you have a rough 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 adviser, such as our team here at The Mortgage Pod, will give you a comprehensive understanding of your budget, expected monthly mortgage payments, and the overall costs based on your income, mortgage offer, and affordability assessment.
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 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 and how they handle credit checks, mortgage applications, and mortgage deals.
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 35 years of combined industry experience, our team of experts has likely encountered a similar scenario before.
- We specialise in holistic support and guidance, from the very first conversation with us to the day you exchange contracts and reach completion day. We will be here with you every step of the way, including celebrating when you collect your keys.
- We will provide you with a detailed breakdown of all mortgage costs and legal work associated with your circumstances, helping you make informed choices about the 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 when you need advice on your purchase.
Frequently Asked Questions About the Home Buying Process
What Questions Should I Ask an Estate Agent?
It’s a good idea to understand the property’s sales history, how long it has been on the market, and whether any previous sales have fallen through. You can also ask about maintenance, repairs, major works, or improvements that have been made to the property. Local estate agents are often a competitive source for this information.
How Should I Choose a Mortgage Broker to Work With?
Speak to a few mortgage brokers, get a feel for their process, enthusiasm, and how they explain mortgage rates and monthly repayments. We also recommend reading their Google reviews to see how past clients rate their service. You can see ours here.
Do I Need to Speak to the Estate Agent’s 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 choose not to.
Do I Need a Solicitor to Purchase a Property?
Yes. When buying a property in the UK, you need a legal representative, such as a conveyancer or solicitor, to handle the legal work, transfer fee, stamp duty, and completion date arrangements.
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 to get expert advice on everything from your mortgage eligibility and lender selection, through to your full mortgage application.
