Buying your first home is a huge and exciting milestone, but it can also come with a lot of stress and confusion.
If you’re ready to get your foot on the first rung of the property ladder, but you’re feeling a little overwhelmed by all the steps involved, this guide for first-time buyers will help you navigate the home buying process with confidence.
Understanding the Current Market
Before buying your first home, it’s important to have an understanding of the current UK housing market. While data and forecasts are mixed, most experts are in agreement that after soaring house prices in recent years, the rise in property asking prices is now slowing.
This means now may be a good time to buy a house generally, but there are lots of personal factors to consider when deciding whether the timing is right for you.
Take a look at the local housing market before you start viewing properties to get an idea of what types of properties are currently available on the market, including new build homes and older houses.
Getting Your Finances in Order
Before you start looking for your first home, you’ll need to know whether or not you can secure a mortgage. Use a mortgage calculator to get a rough idea of how much you might be able to borrow, as well as how much it will cost you to pay back, and what kind of deposit you’ll need.
Recent changes in affordability testing with some lenders mean that some homebuyers may be able to secure a larger mortgage than they might have expected under old affordability rules, but it’s vital that you only borrow as much as you can realistically pay back, otherwise you’re at risk of having your home repossessed.
Getting a mortgage in principle from your lender before starting your property search can make you a desirable candidate when it comes to viewing properties and putting in offers.
Navigating the Buying Process Step-by-Step
Once you’ve secured your mortgage in principle, it’s time to start thinking about your criteria and viewing properties.
Buying a home in the UK is a multi-stage process. The steps involved are:
- Search for and view properties
- Decide on a property and make an offer
- Hire a solicitor (or conveyancer)
- Your lender will usually conduct a mortgage valuation to ensure the property is worth what you’re offering to pay for it
- Arrange to have a homebuyers survey of your chosen property
- Your solicitor will conduct searches and draw up contracts
- Once all parties are happy, it’s time to exchange contracts (this makes the sale and purchase legally binding).
- Within a week or two of exchanging contracts, you will usually be able to pick up the keys to your new home and move in! (This is also when the money changes hands.)
How long this takes depends on multiple factors, such as the results of any searches or surveys, any renegotiations on price, and whether or not you’re part of a house buying chain.
Preparing For Completion and Moving In
As your home buying process approaches completion, you’ll want to make the final preparations, such as hiring a removals firm, giving notice to your landlord, and arranging the transfer of utilities and services such as gas, electricity, water and broadband to your new home.
After that, all that remains to do is to move in and start the next chapter of your life in your very own home!
