First Time Buyer house buying process step by step

What is the process of buying a house in the UK?

This guide to the house purchase process describes steps to buying a house for the first time. It contains the main important house purchase stages from setting out what home you want to mortgage application to moving in. In Scotland slightly different to England, the solicitor carries out all the conveyancing activities and the Estate Agent is mainly concerned with putting the home on the market. The house seller in Scotland also supplies a visual inspection house survey by a Chartered Surveyor in a 'Home Report' (Home Report Scotland).

1. Finance - What are the stages of getting a mortgage in the UK?

   Money is the first item to consider so get a valuation of your present property if you have a home. Calculate the difference between what you can sell it for and what you have left to pay off on the mortgage. Your home equity is this figure minus all the costs of selling the property and settling your mortgage. If you sell your existing home your deposit will normally be your equity plus some savings. Always leave some money aside for unexpected costs -see The Hidden Costs of Buying a Home. Mortgage brokers and banks have processes that you must follow so have your proof of earnings and your legal status with passport/visa available.
   1. Work out your deposit. Start preparing your mortgage documentation and check Mortgages - red flags.
   2. Check brokers, banks and Price Comparison sites to estimate how much you can raise in a mortgage.
   3. Get a 'Mortgage Promise' also known as an 'Agreement in Principle' (IP) (Mortgage documentation checklist) which is NOT a guarantee of a mortgage but an indication that a bank or mortgage provider will eventually offer you a mortgage after they verify your personal financial information.
   4. The bank offering the loan may offer a lower interest rate if you agree that they can carry out a home buyers report - always check on this.

2. Describe your next property

   This is the most important stage of house buying - use our Home Buyers Wants and Needs List as a guide.
   1. Where you want to live.
   2. Shortlist your priorities in a house - rooms garden etc.
   3. What services you want nearby - shops, schools etc.

3. Learn about house inspection

   Get familiar with the Free PDF Printable House Viewing Checklist Survey and do a practice viewing on a (friends?)house.
   1. Discover how to inspect a property.
   2. Select builders, plumbers and electricians to have them ready to quote.
   3. Choose a RICS surveyor and agree approximate survey price.
   4. Buy a good torch, measuring tape and notebook!

4. House search

   Start looking for a home online and check descriptions in detail.
   1. Ask the seller if there any covenants on the house - these are legal restrictions on what you can and can't do with the property - do NOT spend any money checking or viewing until you are satisfied with any covenants that exist.
   2. If the house is on an estate, what are the estate charges?
   3. Is the house freehold or leasehold and what charges exist?
   4. Carry out background flood / water checks to filter out properties as described at Buying a home with flood risk or chance of water damage.
   5. Check out the area for Radon Gas and Hidden Environmental Risks - Test your house for radon.
   6. Arrange viewings and visit open houses where appointments are often not needed.
   7. Look at the internet price history for the houses.
   8. Shortlist house(s) to inspect.

5. House viewings & inspection

   Carry out house inspections using the Free PDF Printable House Viewing Checklist Survey.
   1. Arrange inspection times.
   2. Carry out your inspection noting both positives and negatives.
   3. Make a bid subject to further professional inspections.

6. Professional House Surveys

   Arrange your surveys as outlined at What are the different types of house buyers survey?.

7. Seller accepts your bid

   The mortgage and legal procedures to buy the house now start and you can arrange conveyancing and set approximate dates for 'Exchange'.

8. Agree a mortgage

   Apply for and get a mortgage acceptance.
   1. Interest rates may have changed since your Mortgage Offer so check the market again.

9. Start the conveyancing procedure

   Hire a solicitor or conveyancer for the legal process.
   1. Lenders have 'panels' - list of conveyancers and solicitors that they trust to work with - when you are searching for a lender, you have to select from these panels.
   2. You pay for the legal work but the solicitor is effectively working for the lender as the solicitor is responsible for registering the lenders mortgage with the Land Registry.
   3. Decide if you want 'Fixed Fee conveyancing' where a price is agreed for the service or pay on a 'time - hours worked' basis.
   4. No sale, No Fee agreement means you only pay certain fees if sale is completed.

10. Memorandum Of Sale

    This is issued by Estate Agent describing the property and buyer/seller data. It is not a legal binding document but a 'memo' with basic information on what has been agreed and all the parties involved including...
    1. House address, whether freehold or leasehold, agreed sale price and Land Registry references.
    2. List of Fixtures & Fittings.
    3. Both parties details and solicitors/conveyancers
    4. Mortgage and estate agent details.

11. Check insurance

    Check out what insurance cover and services you need using Insurance - protecting your home and Insurance - income and family protection.

12. Re-visit the house

    Make sure the house is still what you want and that nothing has been removed or changed from what you agreed to buy.

13. Arrange house move

    Start arranging house moving and any storage if needed with provisional dates.

14. Exchange contracts

    Have your offer accepted and Exchange Contracts with deposit.
15. All legal checks done including the property title deeds (public details of ownership) are checked.

16. Completion

    When all legal checks are completed, all funds must be transferred and you can move in.