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Buying a house, particularly for the first time can be daunting. The decisions you make 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.
KEY INFORMATION
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.
You’ll usually need a deposit of at least 5% to buy a house with a mortgage. But having a bigger deposit, ideally at least 10% or higher should give you access to cheaper mortgage deals. Plus, you’ll have less to pay back.
You can boost your house deposit savings by 25% by saving into a Lifetime ISA if you’re eligible. So investigate the best Lifetime ISAs. For information, read our guide on How to save for a deposit
However, buying a house with no deposit is possible. Find out more in our guide 100% Mortgages.
First time buyers and second steppers are increasingly depending on financial help from family. Read our guide on The Bank of Mum and Dad.
Buying with a partner or buying with friends can also boost your borrowing power. But there’s a lot to consider first.
For those struggling to raise a deposit, there are government schemes, such as Shared Ownership. Find out more in the guide First time buyer schemes.
Before you start house-hunting it’s a good idea to work out how much you’re likely to be able to borrow and how much your monthly repayments are likely to be:
A mortgage broker may be particularly useful if your circumstances are less straightforward, such as if you’re looking for a self-employed mortgage, a zero hours contract mortgage or mortgages for bad credit.
Don’t forget there are extra costs of buying a property such as stamp duty which you’ll want to factor into your budget. 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 our cost of buying a house calculator.
When it comes to when to apply for a mortgage, while it’s useful to research the market as early as possible and get a mortgage in principle, you can’t make your full mortgage application until you’ve had an offer accepted on a house.
A mortgage in principle also known as a Decision in principle 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.
When the time comes to make a formal mortgage application, for an overview of what you need to do, read our guide How To Get A Mortgage In 6 Easy Steps.
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?
Once you know where you want to live, here’s how to choose the right house:
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?
But if you’re planning to buy and sell at the same time, read our guide on buying and selling a house at the same time for steps you can take to make things run more smoothly.
Making the right offer on a house is key. Find out how to calculate how much to offer in How do I know I’m not paying too much?
Prepare to negotiate but firstly, decide on the maximum amount you want to spend on the house and your negotiating strategy. Find out more on how to do this in our guide Making an offer – and haggling over the price.
Starting with an offer lower than you’re prepared to pay is often the best tactic as it gives you room to negotiate. But you’ll need a different strategy if you need to submit a sealed bid.
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.
KEY INFORMATION
Having an offer accepted is exciting but it’s not a done deal until you exchange contracts. It’s common for sales to fall through: nearly 3 in 10 sales collapsed in 2024 according to Quick Move Now’s data.
There are numerous reasons why your purchase could fall through, including:
As a buyer, if your purchase falls down as well as missing out on the property, you could lose money on fees you’ve already paid out. So consider buying Home Buyers Protection Insurance, which helps cover elements of your legal, survey and mortgage costs should your purchase fall through.
Once your offer on a house is accepted it’s time to apply for your mortgage.
Once you’ve made your mortgage application, you’ll need to wait for your lender to make you a formal mortgage offer. This can take 2-4 weeks but can vary by lender, the house you’re buying, the findings of the mortgage valuation survey and your personal and financial circumstances. See our guide How long does it take to get a mortgage?
Lenders consider a range of factors when deciding whether or not to lend to you including your income, your outgoings, your deposit and your credit score. But each lender has different lending criteria and a mortgage broker will match you to the lender most likely to accept your application.
Down valuations happen when the surveyor undertaking the mortgage valuation for a lender values the property at less than the price the buyer has agreed to pay.
When you’re buying a house with a mortgage, it is also a good time to consider getting life insurance. See our guides Do I need life insurance for a mortgage and how life insurance works, the types and costs.
At the same time as sorting your mortgage, you’ll need to get a conveyancing solicitor to handle the legal side of buying it. Get instant conveyancing quotes now.
Average conveyancing fees when buying a house range from around £400-£1,500 plus disbursements, depending on factors including property type, value and locations. Disbursements could add up to £700 or even more. Read more in Conveyancing fees: What to expect.
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
Top tip: Conveyancing delays are common and can lead to sales falling down. Stay in regular touch with your solicitor to make sure your purchase is progressing. And return all paperwork you’re asked for promptly. Read How to speed up conveyancing.
No, you don’t need to use any services recommended by an estate agent. You could end up paying more for a worse service. Read Do I have to use an estate agent’s mortgage advisor.
Getting a survey isn’t a requirement when buying a house but when you’re spending hundreds of thousands of pounds on a property, paying for an independent expert surveyor is likely to be a good investment.
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.
No. A mortgage valuation is different to a survey. It 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.
KEY INFORMATION
When you exchange contracts with the seller you become legally committed to buying the property – and they are legally committed to selling it to 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 can exchange contracts, you need to:
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.
Once you have exchanged contracts, you need to ensure that you take out buildings insurance on the property you are buying, as you are responsible for it from then on.
It’s usually a condition of the mortgage that you have buildings insurance in place. Compare home insurance quotes from 50+ providers.
Once you’ve exchanged, your completion day is fixed. Here are your next steps:
Completion is when you pay for the property and take ownership of it. It 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 beforehand, the tradespeople can now start.
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
Congratulations! You’ve got through one of life’s most stressful events!
Buying a house usually takes about 6 months. But that’s a ball-park figure and varies considerably because each transaction is so different. For example, if you’re part of a long chain or selling at the same time you can expect delays for a myriad of reasons. The legal process takes longer if you’re buying a leasehold. And if you’re a cash buyer you can move faster than if you’re buying with a mortgage. See our full guide on how long it takes to buy and sell a home.
If you’ve found a property you love and you can get a mortgage and afford the repayments and bills, then yes, now could be a good time to buy a house. Noone knows if house prices will drop in the future but even if prices do dip in the short term, generally speaking property prices tend to rise over time. So you’re likely to make a profit on any long-term investment.
This will vary from move to move when buying a house, but finding the property you want to buy can often be the most time-consuming part. In some instances, this could take three or four months, though for some buyers it will take considerably longer. The conveyancing process can also be quite lengthy, typically between 12-16 weeks, while arranging a mortgage could take 2-6 weeks. Even getting local searches back can take 5 weeks with some local authorities.
1. Don’t allow yourself to be rushed through the house by either the agent or owner.
2. Don’t ignore things which should set alarm bells ringing, such as signs of damp, or cracks in walls.
3. Don’t point out any problems or issues during a viewing. You may be able to use these to your advantage to renegotiate the price.
4. Don’t let the current décor cloud your judgement. Try to remain objective.
5. Don’t reveal how you feel if you’re keen. Keeping a poker face can put you in a stronger position if you do decide to make an offer.
But there’s so much more to think about when viewing a house.
While leasehold isn’t ideal, most flats are sold on a leasehold basis, so it’s quite common to own a leasehold at some point in your life. If this is you, research, good legal advice and understanding the pitfalls of buying leasehold are critical.
First of all you’ll want to check you’re not buying a flat with a short lease and that there are no major works planned. Check what service charges and annual ground rent you’ll be required to pay and be aware that over time these fees can go up.
You won’t be able to make any major changes to the property without obtaining permission from the freeholder and there may be other restrictions, such as not being allowed pets, or to sublet.
When buying a house, you’ll want to get it for the best price possible. Find out how to do this in our guide on Making an offer on a house & negotiating effectively
But if you’re buying a house and it’s being sold cheaply because it has issues, for example you’re buying a flat with a short lease then make sure you’re fully informed about the potential consequences before going ahead with the purchase.
You might be asked to pay a holding deposit when buying a house although this is most common if you’re buying a new build home, it will usually be called a reservation fee.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Seopa Ltd, for home insurance, authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860).
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
