Buying a property is on most people’s bucket lists. Many of us grow up with ambitions to be homeowners. There are benefits to renting, particularly if you don’t know where you want to settle, but there’s nothing like holding the keys to your own home in your hands. Investing in bricks and mortar is an exciting proposition, but it can be a complex process.

To save you time, energy and stress, this guide has everything you need to know about buying a property. 

Getting a mortgage

Around 30% of UK homes are owned with a mortgage. Many people borrow money to buy a place to live. Getting a mortgage involves applying for a loan either online or via in-person services at a local branch. There are many mortgages available from a wide range of providers. If you’re thinking about applying for a mortgage, it’s crucial to compare products and rates, choose reputable lenders and ensure you understand the terms and conditions.

There are strict borrowing criteria which dictate how much you can borrow and when you pay it back. It’s useful to research in advance and see how much you can afford to spend before you start your property search. This will give you an idea of your budget. Taking out a loan means paying a monthly installment for a fixed term. Always ensure you can afford the repayments before you apply. If you miss payments, this will impact your credit rating. 

If you’re unsure which mortgage to apply for or which provider to choose, research online, read guides from trustworthy sources and seek advice from a mortgage expert or financial adviser. It’s beneficial to explore interest rates and consider the value of your deposit when comparing mortgages and deciding whether it’s a good time to buy.

If mortgage rates are high but they’re expected to drop, it may be best to wait. The more you can save before you borrow, the better the rate you’ll get. If you have a 40% rather than a 10% deposit, your loan-to-value ratio will be better, which means you’ll pay less interest.

Making an offer

If you’ve found a home you love and you’re ready to move, you may be thinking about making an offer. This process involves contacting an estate agent or the vendor if it’s a private sale and submitting an offer based on the price you want to pay. Offers vary according to the specific property and location. In some cases, houses may be on the market for offers over a set price, while in others, the asking price is set, and people tend to put in offers under that value.

It’s important to evaluate the situation before you make an offer. You may be in a position to go lower than the asking price, but you might also find yourself in a bidding war or competition for a highly sought-after property. If the house has been on the market for a long time, there may be room to go in low. If there are multiple parties involved or properties are selling rapidly, you may need to go above the asking price.

It’s helpful to speak to the estate agent before putting your offer in, as this will give you insights into the price the vendor is looking for and the amount of interest in the property. Unless there are several buyers bidding or the property is likely to sell within hours, it’s worth starting lower than your maximum offer. You can always increase the price if the seller rejects your opening bid. 

Seeking legal advice

If you’re buying or selling a property, you’ll need to seek legal advice. Transferring ownership of a house or flat is a legal process. Research firms carefully and choose reputable companies that have a proven track record and high ratings for customer service and support. Firms like Harper Macleod can help you navigate the buying and selling processes and eliminate stress.

It’s helpful to note that both the buyer and seller will need legal representation. Once you’ve chosen a firm, their team will handle negotiations and communications on your behalf. It’s important to choose a firm that you trust and factor in legal costs when setting a budget for your move. 

Conducting a survey

Conducting a survey on the property you want to purchase is highly recommended, particularly if it’s an old property or if there are signs of damage or wear. Building surveys provide insights into the condition of the house or apartment. If your survey flags issues which require attention, you may want to adjust your offer or even pull out of the sale.

If the property is at the top of your budget, for example, and the survey shows it needs significant repairs, you might not be able to afford to proceed. If this is the scenario, it’s worth contacting the vendor via the agent to see if they would accept a revised bid or carry out the necessary work. If the roof needs replacing, for example, you may want to lower your offer or ask the vendor to arrange for work to be done before you exchange contracts. The seller may reject the offer. If this happens, you can back out. Until contracts are exchanged, you have the right to change your mind. 

If your survey highlights repairs or remedial jobs, it’s wise to get some quotes before you proceed to see how much the work will cost. This may alter your decision to move forward or pull out. 

Setting a budget for additional costs

It’s understandable to focus on the property purchase price when budgeting for a move, but there are significant additional expenses to consider. Examples include charges such as stamp duty, legal fees, your property survey and moving costs. Calculating extras in advance will help you budget and avoid any unexpected, unwanted surprises. 

Buying a property is a major life event. It’s an exciting prospect, but it can be a roller-coaster ride. Being aware of the potential challenges can help you navigate the process. Key steps include getting a mortgage, submitting an offer, seeking legal advice, doing a survey and setting a budget for additional costs. It’s important to take your time, take advantage of expert advice and ensure you’re 100% certain you want to proceed before exchanging contracts. 

This is a collaborative post.