Moving Home

Guide to buying a house

Buying a new home can be stressful, and if you have never done it before the process can seem daunting. This step-by-step guide to house buying walks you through the eight stages of the home buyer's journey, so you know what happens next at every point between your first search and the day you collect the keys.

The Eight Steps

Home buyers planning their property purchase

The short version

What the home buyer's journey looks like.

The process is far less daunting once it is broken into stages. Here is what matters most before you start.

Eight steps

From deciding whether to buy at all through to collecting the keys, the home buyer's journey breaks down into eight manageable stages. Knowing what comes next takes most of the stress out of it.

Budget beyond the price

The asking price is only part of what you will spend. An independent survey, solicitors' fees, removals, furniture, appliances and carpets all belong in the budget from the start.

A valuation is not a survey

A lender's valuation protects the lender's money, not your interests. A lender will not lend without a valuation — and a buyer should not agree a price without a survey.

Step by step

The eight steps to buying a house.

Each stage answers a question buyers commonly have, and each one leads naturally into the next. Work through them in order and very little should take you by surprise.

Step 1

Decide whether to buy or rent

There are advantages and disadvantages to both. Weigh them against your own circumstances rather than against what other people are doing.

Buying means you own the property and gain from any increase in its value.
Buying usually needs a large deposit, a loan, and carries the risk of losing your home.
Renting keeps you flexible and free from interest rate rises.
Renting means you never own the property and must live by your landlord's rules.

Step 2

Find a property

Once you have decided the time is right, start looking for the right home in the right location — and research the area as thoroughly as the property itself.

Use local estate agents and property portals such as Rightmove and Zoopla.
Drive around the areas you like and check private adverts in local papers.
Learn as much as you can about the local area before you commit to it.
Ask the agent or owner every question you need answered — nothing is too small.

Step 3

Find a mortgage

You can go direct to a high street bank or building society, or use a broker or financial adviser. Both routes have trade-offs worth understanding before you apply.

An adviser can give you an independent view of the whole lending market.
Searching the whole market takes longer to identify the best product for you.
A bank or building society will generally offer you its own in-house products.
Existing customers with a transaction history are often processed more quickly.

Step 4

Arrange a valuation and a survey

You have found a property you would like to buy, but you cannot proceed without a valuation — and you should not agree a price without a survey. They are not the same thing.

Your lender needs a valuation to confirm the property is worth more than the loan.
You need a survey to know the condition of the property and what repairs it needs.
A survey tells you whether the property is genuinely worth the asking price.
Choose the level of survey that suits the property and your circumstances.

Step 5

Agree a price

Make the offer with the survey findings in front of you. Condition is the strongest negotiating evidence a buyer has, because it is documented and independent.

Offers in England, Wales and Northern Ireland are not binding until contracts are exchanged.
In Scotland an accepted offer through the missives process commits you far earlier.
Use documented defects to renegotiate the price or ask for work to be done before exchange.
Ask the agent to mark the property sold subject to contract to reduce the risk of gazumping.

Step 6

Find a solicitor

You need a solicitor or conveyancer to transfer legal ownership from the seller to you. Choose carefully — this is the part of the process that keeps everything moving.

Solicitors must be members of the Law Society.
Licensed conveyancers must be members of the Council for Licensed Conveyancers.
Many larger practices employ in-house conveyancers to do their conveyancing.
Do your research and compare service and cost before you instruct.

Step 7

Exchange contracts

Exchange happens only once your solicitor is satisfied that everything is in place, including the legal checks and your mortgage funds.

Exchange of contracts is a legally binding process.
Both parties are committed to the deal from that point on.
Make sure any survey findings have been dealt with before you exchange.
Your deposit is normally paid at exchange.

Step 8

Complete

Completion takes place when your solicitor is in a position to pay any previous lender and the seller. This is the finish line.

Funds are transferred and any existing lender and the seller are paid.
Legal ownership passes to you and the transfer is registered with HM Land Registry.
The keys are released, normally through the estate agent.
Any transaction tax due is paid by your conveyancer within the statutory deadline.

Buy or rent

Weigh up both before you commit.

There are advantages and disadvantages to buying and to renting. Think carefully and weigh up the benefits of each based on your personal circumstances.

Buying

Advantages

You own the property outright once the mortgage is repaid.
You gain from any increase in the value of the property.
You decide what to change, improve or extend.

Disadvantages

You will usually need a loan to fund the purchase.
You need a large deposit before you can start.
There is a risk of losing your home if you cannot keep up repayments.

Renting

Advantages

You keep the flexibility to move quickly when circumstances change.
Interest rate rises do not affect what you pay.
Maintenance and major repairs are the landlord's responsibility.

Disadvantages

You never own the property, however long you stay.
You still need a deposit up front.
You must live by your landlord's rules.

Finding a property

The questions worth asking before you offer.

Research the local area and learn as much as you can about the property you are thinking of buying — and do not be shy about asking the agent or the owner everything you need to know.

The seller and the chain

How long has the seller lived there? Why are they moving, where are they going, and is there a chain? A long chain can change your timescales completely.

The property's history on the market

How long has it been on the market, and how many viewings and offers has it had? A property that has been listed for a long time often has a reason behind it.

The building and its services

What repairs have been done? How old is the boiler and when was it last inspected? If there is a real fireplace, is it safe to use? Is the lease long enough, if there is one?

The neighbours and parking

Who lives upstairs, downstairs or next door, and what are they like? Are there parking issues outside the property? Both are hard to change once you have moved in.

What is included in the sale

White goods, curtains, carpets, a wood burner — anything you assume is staying should be confirmed in writing rather than agreed on the doorstep.

The costs you have not counted

Beyond the price itself, budget for an independent residential survey, solicitors' fees and removals, plus furniture, appliances and carpets once you arrive.

Finding a mortgage

Which mortgage should you choose?

Do your research. The right product depends as much on the fees and the future as it does on the rate you are quoted today.

Choosing a mortgage type

Fixed rate, tracker, discount, standard variable and interest-only mortgages all respond differently when the Bank of England moves rates. Work out what each would do to your monthly payment in a rising market, not just today.

Fees and charges to check

Arrangement fees, booking fees and early repayment charges can quietly undo an attractive headline rate. Compare the total cost over the initial period rather than the rate on the advert.

Plan for the end of the deal

The payment jump comes when a fixed or discounted period ends and the loan reverts to the lender's standard variable rate. Know the date it happens, know roughly what the new payment would be, and start looking at remortgaging several months ahead.

Surveyor preparing an independent survey report for a buyer

Valuation and survey

A lender will not lend without
a valuation.

And a buyer should not agree a price without a survey. The two reports exist for two different people, and only one of them is written for you.

What the lender needs

Your lender wants to know that you can pay, that you will pay, and that its security is sound — that the property is worth more than the loan. That is what a valuation is for.

What you need

As a buyer you need to know whether the property is worth the asking price and what repairs it needs. A valuation will not tell you that, which is why buyers need surveys.

What a survey gives you

An independent report from professionally qualified surveyor sets out the condition of the property, so you can negotiate on price, plan for repairs and commit with confidence.

Common questions

Buying a house, at a glance.

What are the steps to buying a house?

The home buyer's journey breaks down into eight steps: decide whether to buy or rent, find a property, find a mortgage, arrange a valuation and a survey, agree a price, find a solicitor, exchange contracts and complete.

Is it better to buy or to rent?

It depends on your circumstances. Buying means you own the property and gain from any rise in its value, but you need a large deposit and usually a loan. Renting keeps you flexible and shields you from interest rate rises, but you never own the property and must follow your landlord's rules.

What costs should I budget for beyond the asking price?

Buying a house can be an expensive exercise. Alongside the purchase price, factor in an independent residential survey, solicitors' fees and removal costs, as well as practical extras such as furniture, appliances and carpets.

What should I ask before making an offer?

Ask how long the seller has lived there and why they are moving, whether there is a chain, how long the property has been on the market, how many viewings and offers it has had, what repairs have been done, how old the boiler is, what the parking is like, and exactly what is included in the sale.

Should I use a mortgage broker or go direct to a bank?

A broker or financial adviser can give you an independent view of the whole lending market, though it may take longer to identify the best product. A high street bank or building society will generally offer its own in-house products, but can often process an application quickly — particularly for existing customers.

What is the difference between a valuation and a survey?

A valuation is carried out for your lender to confirm that the property provides adequate security for the loan. A survey is carried out for you, and tells you the condition of the property and what repairs it needs. A lender will not lend without a valuation, and a buyer should not agree a price without a survey.

What does a solicitor or conveyancer do?

They transfer legal ownership from the seller to you. That means examining the title at HM Land Registry, checking for charges and restrictions registered against the property, running the searches, raising enquiries with the seller's solicitor, handling exchange and completion, paying any transaction tax due and registering you as the new owner.

When does the purchase become legally binding?

In England, Wales and Northern Ireland, at exchange of contracts — before that either side can walk away. Exchange happens once your conveyancer is satisfied the searches, enquiries and mortgage offer are all in place. Scotland works differently: an accepted offer through the missives process is binding much earlier.

When do I get the keys?

On completion day, once funds have reached the seller's solicitor. Keys are normally released through the estate agent. Completion is usually set for a few weeks after exchange, though the two can be arranged for the same day if both sides need it.

Any questions?

Found the house? Find out what you are actually buying.

Our surveys are carried out by Professionally qualified surveyors and give buyers a clear picture of a property's condition before contracts are exchanged. Findings help you negotiate on price, plan for repairs and complete with confidence.

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