The first question you need to ask yourself is how much can you afford. You will need to investigate mortgages and find the right kind to suit you. Shop around and ask for advice.
The majority of mortgages are based on two and a half times your salary and you should take an affordability test to make sure you can cope with the payments. Remember, it isn't just the mortgage that costs. Other finances to consider are:
• Survey fees
• Usually you will be expected to pay a minimum of 5% deposit on the property
• Stamp duty and land tax. This is calculated on the purchase price, and is only payable on properties over £125,000
• Land registry fee
• Local authority search
• Any fees charged by the mortgage lender or broker
• Solicitor's fees
• Removal expenses
• All the final bills outstanding from your previous home
• Any finance needed for refurbishment or refurnishing your new property
The maintenance costs of the property need to be accounted for in your budget too, including:
• Utility bills - including heating, water, gas and telephone
• Council tax
• House insurance, including life, buildings and contents insurance
2.Finding a property
You can find a property by going through:
•Estate agents
•Local paper property pages
•Keeping an eye out in your desired area for ‘For Sale' notices or new build developments
3.Choosing your property
Always inspect a property at least two or three times before making an offer. It's a good idea to visit an area at different times of the day and night to get a full perspective – look out for things like noise pollution or whether you feel safe at night.
4.Making your offer
Once you have decided a property is for you, it is normal to put in an offer slightly below the asking price. Always try and get the best deal you can. There is always a risk but, you can always up your offer if it is rejected.
5.The offer is accepted.
You will then need to fix up a survey and find a solicitor to do the legal work for you. Your offer will be subject to contract, so you can still pull out if anything wrong comes up on the survey.
6.Survey
The survey considers the value of the property and examines the structure of the building, identifying any existing or potential problems. If problems are reported, you will have to consider whether you still want to go ahead with the purchase or want to negotiate further with the seller about the price.
Your solicitor will than handle stamp duty, search fees and land registration fees on your behalf.
7.Contracts
It can take up to two months from having your offer accepted to exchanging contracts. Once the conveyance work is complete, eventually you will sign the contract.
8.Insuring the property
Your mortgage lender will help you with insuring your property or you can look independently if you want to shop around for a cheaper deal. All buildings insurance should be arranged from the date of exchange, once the contracts are exchanged, you are responsible for the property.
Completion! Completion is the agreed date to move in your property. The seller hands over the keys and you are the proud owner of your new home!
