Step by step guide to buying a house

Buying a house, particularly for the first time can be daunting. The decisions you make when buying a property could save you – or cost you - many thousands of pounds. Here’s our step by step guide explaining how to buy a home, your checklist for all the key stages of buying a house.

Angela Kerr Director, Editor

Our step-by-step guide to buying a house takes you briefly through each step of the home buying process, and you can find more details by following the links within each section.

1.    Decide if buying a house is right for you

• Although 86% of people in the UK want to own their own home, buying a house is not always right for everybody all the time. Find out what you should consider in our guide Buying vs Renting: Benefits of buying. One of the most important things to think about if you want to buy a house is whether you can afford it. See Can I afford to buy a home?
• If you’re already a homeowner, you’ll need to decide whether you want to sell your house or flat before you buy. Doing this means you’ll be a more attractive buyer as you’ll be able to buy chain-free. But there are downsides. See Should I sell my home before I look for a new one?
• And if you’re buying a house and plan to sell your current home, read our guide on buying and selling a house at the same time for steps you can take to make things run more smoothly.

2.   How much deposit do I need?

• Put simply, it’s best to have as big a deposit as possible when buying a house because you’ll have to borrow less and be able to access cheaper mortgage deals. There are lots of steps you can take to start saving for a house deposit now, including investigating the best Lifetime ISAs. LISAs offer 25% bonus from the government on your house deposit if you’re eligible. For information on this and what else you can do, read our guide on How to save for a deposit
• Can you get any help from your parents or grandparents? First time buyers and second steppers alike are increasingly depending on financial help from family. Read our guide on The Bank of Mum and Dad – How to help your child buy a home. If you have any savings on long term deposit that you plan to use, cash them in. Buying with a partner or buying with friends can also boost your borrowing power.
• However, it is possible to buy a house without a deposit. Find out more in our guide 100% Mortgages – should I get one? And for those struggling to raise a deposit, there are government schemes, you can also get help with smaller deposits from government home buying schemes.

3.   Choose the right mortgage

• It’s advisable to speak to a mortgage broker before you start house-hunting to find out how much you’re likely to be able to borrow and how much your monthly repayments are likely to be. Whether you’re looking for mortgage advice for first time buyers or you’re looking to remortgage, the mortgage market has shifted considerably in recent years so having up-to-date advice from an expert who knows the mortgage market inside out and is vital. Our award-winning mortgage partners at L&C offer fee-free advice and you can get in touch online or over the phone.
• Speaking to a mortgage broker may be particularly useful if your circumstances are less straightforward, such as if you’re looking for a self employed mortgage or mortgages for bad credit. And bear in mind, the process of buying a house is slightly different if you are buying a new build property, see our advice in New Build Mortgages explained.
• You’ll need to consider what type of mortgage you want: see Understanding mortgage types and what one you need. And make sure you don’t overstretch yourself. See our guide on How much can you afford to borrow for a mortgage?
• When it comes to when to apply for a mortgage, while it’s useful to research the market as early as possible, you can’t make your full mortgage application until you’ve had an offer accepted on a house. But you can – and should – apply for a mortgage in principle which is a document from a lender stating how much it would lend you ‘in principle’ based on details including your income. Having a mortgage in principle shows you are a serious buyer and will put you in a stronger position when it comes to making an offer on a house.
• With your mortgage, for an overview of what you need to do, read our guide How To Get A Mortgage In 6 Easy Steps.

4. Add up all the extra costs

• Don’t forget the variety of one-off and ongoing costs of buying a house. These can put an extra 15% on the cost of your home – more if you want to do serious building or redecoration work when you move in. See The costs of buying and owning a property

5.  Decide where you want to live

• If you’re planning to buy a house in a different part of town, or even across the country, then deciding where to live can be difficult and time-consuming. It’s crucial to make the right decision; get it wrong and you will either be unhappy with where you live or face the costs of moving again. For everything you need to think about see How do I choose a new area to live in?

 6.  Choosing the right house

• Once you know where you want to buy, research the local market and visit the area to butter up local estate agents. See How can I get estate agents on my side?
• Visit as many properties as possible. For tips on what to watch out for see What to look for when viewing a house. And don’t be shy about asking the right questions: see 25 Questions to ask when viewing/ buying a house. Viewing houses as early as possible can give you an advantage. For tips on how to do this see Finding a house before it hits the market.
• When you’re viewing properties, make sure you understand whether the property is freehold or leasehold and that it’s not on a short lease. See our guide Leasehold vs Freehold – what’s the difference? And if you’re considering buying a leasehold property, see buying a leasehold property.
• If you’re hoping to buy a new build property, you need to do a bit of extra research to ensure your experience doesn’t turn into a new build nightmare. See our top tips for buying a new build and buying off-plan. Also, read our guide on the pros and cons of new build and 10 questions recent new build homebuyers wish they had asked.

7.    How to make an offer – and get it accepted

• Once you’ve found a house you want to buy, making an offer for the right amount is key. Find out how to calculate how much to offer in How do I know I’m not paying too much?
• Put your offer in writing (a telephone call followed up by an email will be fine) and emphasise your position, e.g. if you’re a first time buyer or a cash buyer. Then get ready for negotiations. Find out more on how to do this in our guide Making an offer – and haggling over the price. If are you worried about negotiating, you can appoint a Buying Agent.
• If your offer is accepted, while it’s understandably exciting, it’s not a done deal until you exchange contracts. 25% of property sales fell through before completion in the second quarter of 2023. So consider buying Home Buyer’s Protection Insurance, which helps cover elements of your legal, survey and mortgage costs should your purchase fall through.

8.  Make your full mortgage application

• When you’re buying a house, you should ideally have got your finances in place before making an offer. If you’ve done this and your offer has been accepted, you now just need to go back to your mortgage broker and start your full mortgage application. See our guide How to make a successful mortgage application. Then you’ll need to wait for your lender to make you a formal mortgage offer. See our guide How long does it take to get a mortgage?
• If you haven’t got your finances in place by this stage of the process, you must now scramble to do so as quickly as possible, before the seller loses patience.
• Also, when you’re buying a house with a mortgage, it is also a good time to consider getting life insurance. See our guide Do I need life insurance?

 9.  Hire a solicitor or conveyancer

• At the same time as sorting your mortgage, you’ll need to get a solicitor or conveyancer to handle the legal side of buying it. Don’t just opt for the one suggested by the estate agent. Instead shop around to ensure you get the best price and service. Get instant quotes from regulated and reviewed conveyancing solicitors that cover your area here.
• While the quotes are coming in, our guide on Finding the right solicitor or conveyancer explains the difference between the two and what you need to look for to find the right legal team for your house purchase. Also take a look at our guides on How much do conveyancing fees cost? and use our handy list of 10 key questions to ask your conveyancing solicitor to help make your final choice.
• Once you’ve appointed your solicitor or conveyancer, you’ll need to instruct them carry out Local Authority Searches to ensure there are not any major problems with the property. For the other key steps in the legal process see Conveyancing made easy for buyers

10. Book a house survey

• While a survey isn’t a requirement when buying a house, when you’re spending hundreds of thousands of pounds on a property, paying for an independent expert surveyor seems like a good investment. See our guide What does a surveyor do? There are lots of different types of survey including homebuyer surveys so research your options and get an idea of prices in our guide on How much does a house survey cost?
• It’s a good idea to book your survey in early as it shows the seller you are serious. You can get quotes from local qualified surveyors and compare today so you’re ready to instruct when the time comes.
• If your survey report uncovers issues, you can use it to renegotiate the price you pay. If this happens, our guide A bad house survey report – what to do next can help you.
• But make sure you don’t confuse a survey with a mortgage valuation. A mortgage valuation is for the lender’s benefit and is done to ensure that the property is a good enough to lend against. Often the surveyor will do this from their desktop and won’t even visit the property.
• If you’re buying a new build home, you might be wondering Do I need a snagging survey for my new home? You can read more about snagging surveys and get quotes from our partner Snagging Inspectors here.

11. Progress your purchase

• Once these main milestones have taken place, you’ll be wanting to progress the sale to exchange of contracts as soon as possible. See our guide on how to speed up conveyancing.
• During this time you may also negotiate any final things that have not yet been agreed, such as buying the seller’s appliances.

12. Exchange contracts

• Before you can exchange contracts, you need to arrange your deposit, traditionally 10% of the purchase price although it’s often less, and give it to your solicitor or conveyancer. You may be able to raise this from the sale of your existing home.
• When you exchange contracts with the seller you become legally committed to buying the property – and they are legally committed to selling it do you. If you pull out your deposit can be forfeited and you can be sued. Your solicitor or conveyancer should advise you when you are ready to exchange. You can exchange when you’re happy with the searches, survey, and the details in the contract; your lender has confirmed your mortgage; you’re able to pay the deposit and all the other associated costs including stamp duty. Find out more about the process in How do I exchange contracts?
• Before you exchange contracts, you need to agree a completion date with the seller, this is often 2-4 weeks after the exchange.
• When you’re buying a house, you need to ensure that you take out buildings insurance for the property from the date of exchange, as you are responsible for it from then on. Indeed, it is usually a condition of the mortgage that you have buildings insurance in place. You can get a quote from our partners at Howden Insurance today
• This is also a good time to sort out your broadband – otherwise it won’t be set up for when you move in – and other utilities. And use our moving house check-list to help you plan your move.
• Your solicitor or conveyancer will inform the Land Registry that they are in the process of transferring ownership of your property. And they should also be liaising with your mortgage company to ensure the money will be ready for completion.

13. Book in removals

• We’ve got plenty of advice on how to find the right removals company and how much you can expect to pay for removals. With our removals partner, you can receive up to 5 removals firm quotes straight to your inbox so you can compare removals quotes from local firms near you to find the best price.

14. Complete your purchase

• Completion is when you pay for the property and take ownership of it, and takes place at a certain time of day – often midday. When you have completed you should be able to collect the keys, normally from the estate agent. See what happens on completion day?
• You are now free to move in, or if you are doing any building work before hand, the workmen can now start.

15. Pay stamp duty and conveyancer fees

• After completion, the final stages of buying a house involve your solicitor or conveyancer sending you an account, covering all their costs and disbursements, as well as the purchase price of the house and stamp duty. See how much stamp duty you will pay and when this is due
• Your solicitor or conveyancer will normally pay the stamp duty for you, and ensure that the change of ownership is registered with the Land Registry.
• There may be a small refund due to you if the solicitor has overestimated the costs.

Congratulations! You’ve got through one of life’s most stressful events!

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