Buying your first home but don't know where to start?
Not sure what happens after getting a Mortgage in Principle? Wondering what steps you'll need to take before getting the keys? We've broken down the home-buying process into simple, easy-to-follow steps to help first-time buyers understand exactly what to expect.
1. Work out your budget
Before you start looking at properties, it's important to understand exactly what you can afford. Consider your income, monthly outgoings, existing commitments, and how much you have saved for a deposit. Don't forget to factor in additional costs such as solicitor fees, surveys, moving expenses, and home insurance.
2. Get a mortgage agreement in principle
A Mortgage Agreement in Principle (AIP) gives you an indication of how much a lender may be willing to lend based on your financial circumstances. While it isn't a formal mortgage offer, it can give you confidence when house hunting and show estate agents and sellers that you're a serious buyer.
3. Start house hunting
With your budget and AIP in place, you can begin searching for your ideal home. Think about what's most important to you, such as location, transport links, schools, local amenities, and future growth potential.
4. Make an offer
Once you've found a property you'd like to buy, you'll need to make an offer through the estate agent. The seller can accept, reject, or negotiate your offer. If your offer is accepted, the property is usually taken off the market while the legal and mortgage processes begin.
5. Apply for your mortgage and instruct a solicitor
After your offer has been accepted, you'll submit a full mortgage application to your chosen lender. The lender will carry out affordability checks and arrange a valuation of the property. At the same time, you'll appoint a solicitor or conveyancer who will handle the legal aspects of the purchase, including searches, contracts, and communication with the seller's solicitor.
6. Complete the purchase and get the keys
Once your mortgage has been approved and all legal checks have been completed, you'll exchange contracts and agree a completion date. On completion day, the remaining funds are transferred to the seller, ownership of the property is legally transferred to you, and you'll receive the keys to your new home. At this point, you're officially a homeowner and can begin moving in.
We've got answers
First Time Buyer FAQs
A GHL Direct mortgage broker can compare deals from multiple UK lenders, explain your options and handle much of the application process, helping you find a suitable mortgage with less hassle
Most lenders require a deposit of at least 5% of the property's value, although having a larger deposit can help you access better mortgage rates and reduce your monthly repayments.
The process typically takes between 8 and 12 weeks from having an offer accepted to receiving the keys, although timescales can vary depending on factors such as mortgage approval, legal work, and whether there's a property chain involved.
Various schemes may be available to help first-time buyers get onto the property ladder, including shared ownership and First Homes initiatives. Eligibility and availability can vary, so it's worth speaking to a mortgage adviser about your options.
Alongside your deposit, you'll need to consider costs such as stamp duty, solicitor fees, surveys, mortgage arrangement fees, removals, and home insurance. Budgeting for these expenses can help prevent unexpected financial pressure during the buying process.
Ready to mortgage?
If you're ready to buy your first home, let our friendly mortgage brokers do the hard work.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.