Buying a house can be a daunting task. Here, we take you through all the steps to becoming a homeowner.
Sections
Save for a deposit
What can you afford to pay?
Now, what can afford to pay for a property? Check out a few lender websites to get an idea of how much they are likely to lend you.
Remember, just because they will give you a £200,000 mortgage, that doesn't mean that you can actually afford it! So do some sums on typical mortgage rates at the moment to see what your likely repayment would be. Can you afford it today? And can you afford it in the future, if interest rates rise?
You'll need to get an Agreement in Principle from a lender. This is exactly what it sounds like - the lender is saying that they are willing to lend you a certain amount.
You can compare the best mortgage deals around today in the loveMONEY mortgage centre, which will also give you an idea of just how much they will cost you every month and over the full term of the mortgage.
There are a host of other fees that you will need to consider in your calculations of course, including valuation fees, surveys and a Homebuyer's Report.
And of course, don't forget Stamp Duty. It's payable up front on any property worth more than £125,000, with rates rising the more expensive your property is.
You can find a stamp duty calculator here; if you're in Wales you'll pay Land Transaction Tax instead; in Scotland, you pay Land and Buildings Transaction Tax.
Stamp Duty can add thousands to the cost of a purchase. Can you afford that?
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Find a property
Conveyancing and surveys
Avoid being gazumped
Once your offer has been accepted, ask for the house to be taken off the market to reduce the chance of gazumping. This is where another buyer 'steals' your sale at the last minute with a higher bid.
Call your solicitor regularly to see how things are getting on, fill out forms quickly and chase, chase, chase!
Read more at How to avoid being gazumped.
Exchange contracts
Sell your old property
If you’re selling your old property, try to exchange contracts on your house sale and your house purchase as close together as possible.
The frustrating thing about a housing chain is that every cog needs to be working in order for your purchase and/or sale to work.
Selling first and buying second will give you an idea of how much money you have to spend, although you may be forced to rent if you don’t find a house to buy in good time.
But if house prices rise, you may not get as much out of your money if it takes you a long time to buy.
Buying first has its advantages, if you can afford it, particularly the fact that you won’t have to rent during the moving period. It is costly though.
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Find a good removal company
Completion!