First-time buyer process

What is the process of buying a home in the UK? This is a question typically asked by first-time buyers. This quick post will chronologically list the key steps involved when buying a UK property. On average, the typical purchasing process takes between 2-6 months, depending on a number of factors.  But what does that process look like?

1.    Get a mortgage agreement in principle

A mortgage agreement in principle (AIP) - also known as a decision in principle (DIP) - is a provisional agreement that a lender will grant you a mortgage for a certain amount. This helps you identify the type of property within your budget, and it makes you a more attractive buyer to estate agents and sellers.

2.    Make an offer

After carrying out extensive research and viewing properties in person, you should make an offer on the property you want to buy. Try to keep your offer within any AIP value to prevent complications.

3.    Apply for a mortgage

Once your offer is accepted, you should then apply for a mortgage, preferably with the support of a mortgage broker if it is your first home. There are different types of mortgages to choose from, such as fixed-rate, tracker and variable-rate. Your adviser will help you make the right choice for your circumstances. Note that you don’t have to use a lender that gave you an AIP.

4.    Conveyancing and surveying

Conveyancing is a legal process of checking details about the property and its land, as well as drawing up contracts for the purchase. Surveying is completed by a property surveyor to check the (structural) condition of the property. If a solicitor finds a significant issue or the surveyor tells you there are structural problems, you may decide to lower your offer or pull out of the purchase altogether. Most of the time, no significant issues are found.

5.    Get building insurance

Arrange your home insurance before contracts are exchanged. Once the contracts are exchanged you are legally bound to complete the purchase. If the property was to burn down or flood after that date, you would still have to buy the property, which is why you need to start arranging insurance for the same day contracts are exchanged.

6.    Contracts are exchanged

The exchange of contracts (and money) is completed by your legal representative and the seller’s legal representative. Your solicitor will also apply to change the deeds of the property on The Land Registry to your name. The contracts will stipulate a completion date which is when you can move in. At this point, the sale is legally binding and no party can pull out.

7.    Move-in day!

You typically have to wait two weeks after the exchange of contracts for the completion date, which is the day you get the leys and move in. Two weeks should be enough time for you to arrange removal services to help you move your belongings if necessary. However, some people decide to start arranging this a little earlier.

January 2022