The process of buying a house, bungalow or home can feel daunting - but it doesn’t have to be. Once you know what to expect, it’s really just a series of steps. Here’s how it works, from start to finish.
If you’d like a friendly chat before you start, one of our specialist mortgage advisers can explain everything clearly and guide you through the process.
First things first: find out how much you can borrow and what kind of mortgage suits you. Think of this as your financial reality check.
Your mortgage adviser will:
You’ll also get a clear idea of the costs involved in buying your new home (see below).
Once you’ve got your agreement in principle, you can start house hunting with confidence (and excitement!).
When you agree a price with the seller or estate agent, your offer is usually made verbally first. Don’t sign or commit to anything just yet. It’s a bit like dating: best not to propose on the first meeting!
You’ll need a good conveyancing solicitor to handle the legal side. If you don’t already have one, we can recommend trusted local firms we work with regularly.
Expect to pay an initial sum upfront for search fees (searches the solicitor has to do to check the property will be a sound purchase), with the rest of the legal costs due on completion of the property purchase.
Your mortgage adviser will handle the paperwork and liaise with the lender.
At this stage you’ll usually:
Once your application is in, the lender will assess everything.
It can take around three weeks to get a formal mortgage offer (sometimes quicker if the stars align). During this time, your adviser will chase updates, deal with the lender, solicitor and estate agent selling the home, and keep you in the loop.
You get to sit back and pretend you’re not checking your inbox every hour for the mortgage offer.
Still have some questions? Here are a selection of questions our clients often ask about Mortgages.
Get In TouchWith capital & interest, your monthly payments gradually reduce the loan until it’s fully repaid at the end of the term. With interest-only, you only pay the interest each month and still owe the full loan at the end, which must be cleared another way.
Typically, you’ll need between 5% and 10% of the purchase price, although some specialist schemes can reduce this. The bigger the deposit, the better the interest rate tends to be.
An AIP is a lender’s initial indication of how much they may be willing to lend you. It’s useful when house hunting but isn’t a binding offer.
LTV is the percentage of your home’s value that you’re borrowing. The lower the LTV, the better the mortgage rates usually are, because you present less of a risk to the lender.
Yes, but age alone won’t normally stop you. Lenders mainly care about your ability to repay the mortgage over the chosen term. And there are special mortgages for older borrowers such as Retirement Interest Only, and Lifetime Mortgages, which we also advise on.
When your mortgage offer arrives, your solicitor will talk you through the contract, including any restrictions or special conditions. Once you’re happy, you’ll sign the purchase contract, ready for the exchange of contracts.
This is where everything becomes legally binding – and even more exciting! Your solicitor will exchange contracts with the seller’s solicitor and agree a completion date. You’ll also pay your deposit (usually 10% of the price) ready for this point.
From exchange onwards, you’re legally responsible for the property – even though you don’t live in it yet - so your buildings insurance and life cover should start now.
On completion day, the solicitor transfers the mortgage funds and your remaining deposit to the seller’s solicitor. The seller moves out, you get the keys - and the house is officially yours!
Your solicitor will pay any Stamp Duty Land Tax (if due), register your name with the Land Registry, and send you confirmation of ownership.
Congratulations -you’re a homeowner!
And so you can drop the title into casual conversation. There’s no feeling quite like it, especially if it’s your first time. It might have felt like a long road, but with the right advice and a clear plan, buying your new home doesn’t have to be stressful. And we can be with you on the journey to keep things on track and help to take the stress away.
Buying a home isn’t just about finding the right property and securing a mortgage -there are a few extra costs to budget for along the way. Here’s a quick guide to help you plan ahead.
If you’d like a personal run-through of what these costs might look like in your situation, contact us for a friendly chat.
Contact usYour deposit is usually the biggest upfront cost. Most lenders will ask for at least 5% of the purchase price, though you’ll often get a better interest rate with 10% or more.
The bigger the deposit, the smaller the risk for the lender - and the better your choice of mortgage deals, with lower interest rates.
Stamp Duty is a government tax paid when you buy a property in England or Wales. Your solicitor handles the payment to HMRC when you complete the purchase.
How much stamp duty will you pay?
You’ll usually have to pay 5% on top of these rates if buying a new residential property means you’ll own more than one - for example landlords with buy to let properties.
First-time buyers pay no Stamp Duty on the first £300,000 of a purchase price, then 5% between £300,000 and £500,000. It’s one of the few perks of being new to the game, but if the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before.
You’ll need a conveyancing solicitor to handle the legal side of your purchase.
Expect costs of around £1,000 – £1,500 (but always get an accurate quote), plus search fees of roughly £250–£450.
Your solicitor also pays the Land Registry fee to register you as the new owner.
Every mortgaged property must be valued by an independent valuer.
It’s often worth arranging the Homebuyer Report through your lender if they offer it, as they may combine it with their valuation and save you some money.
Some lenders charge a product or arrangement fee for specific deals, often between £300 and £1,500. Paying such a fee can mean a better deal or lower interest rate.
You can usually pay this upfront or add it to your mortgage - but remember, adding it means you’ll pay interest on it too.
A good mortgage adviser can save you time, money, and stress by finding the most suitable deal and handling the paperwork.
We charge £495 for a residential mortgage, and £595 for a buy to let mortgage, payable upon application.
You’ll always be told the cost before you proceed.
So you’ve got your house, but what happens if life throws a spanner in the works? We will talk to you about insurances and protections to make sure you can still bounce back after the wheels fall off.
Before completion, you’ll need to have buildings insurance in place - most lenders make this a condition of the mortgage.
It’s also sensible to think about life cover, critical illness cover, or income protection to help protect you and your family should anything unexpected occur.
The overall costs of buying a house will vary depending on your property and mortgage, but it’s important to know what’s due and when.
We can help you work out a realistic budget for buying costs and monthly payments so there are no surprises later on.
Contact Andy Wilson Financial Services directly or fill out your details and we will contact you as soon as we're available.
For more information on how we store your data please view our Privacy Notice
Andy Wilson Financial Services Ltd is registered in England No. 07547809. Registered Office: Landmark House, 1 Riseholme Road, Lincoln, LN1 3SN.
Andy Wilson Financial Services is a trading name of Andy Wilson Financial Services Ltd, an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority.
The guidance and /or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
