Step One – Deposit
There are a number of mortgage lenders that will need you to save at least 5% of the cost of the home you want to buy, but the more you save the better your mortgage choice and rate you will get. For example if you would like to buy a home costing £150,000 you will need to save £7,500 (5% Deposit) to £22,500 (15% deposit) or more.
Step Two – Mortgage
Once you have the money in place research on which mortgage will be suitable. Visit your bank or a mortgage advisor who can compare a number of lenders and get you the best rates. You will have an upper hand if you have a Mortgage in Principal in place when making a place. Remember the mortgage advisor will charge you a fee from £250 to £500 but this will be payable upon completion.
Step Three – Making an offer
So after ample of viewings and sleepless nights you have found your ideal home. Make your offer to the Estate Agent who will advise you what will get you that property. Once the offer has been accepted you will need to provide proof of funds, ID and Mortgage in Principal to the Estate Agent. They will then confirm your offer has been accepted in writing.
Step Four – Valuation / Survey
The Estate Agent will get in touch with your mortgage advisor and they will organise the surveyor to attend the property. There may be a cost between £150 and £1,500 depending on the value of the property and level of survey you choose (there are some lenders who will pay a valuation part of the mortgage).
Step Five – Instruct a Solicitor
In the mean time you will need to instruct a =. Ask your Estate Agent to recommend a few and get quotes for you. Have a look online or on the High Street to understand what you are looking for in a solicitor. Remember the cheaper they are the longer the sale process will take and the more stress you will have to deal with. The cost involved start from £300 to £1200 plus VAT. Don’t forget if the house you are buying is over £125,000 you will need to pay stamp duty which will be included in the quote.
Step Six – Sale Progression
At the start of the sale you will have some forms to fill out and ID to take into your solicitors. Once you have got that out the way your solicitor will start the whole process including:
- Draft contracts
- Raise any enquires
- Fixtures and fitting form
- Mortgage offer
- Transfer Deed and contracts for approval
Step Severn – Exchange of Contracts
A deposit is paid to the solicitor who then on exchange of contracts binds the seller and buyer by the exchanging agreements for sale which set out the basic terms entered into. At this stage they commit themselves to the transaction and agree a completion date where the money and the keys will be given to the buyer. The deposit is non-refundable if the buyer does not proceed.
Step Eight – Completion
Completion is usually on a Friday at lunchtime. So get ready for the call from your solicitor and Estate Agent who will advise you on where to pick up keys. Remember to take down meter readings at the property so there is no complication when setting up utilities.