Here are 10 steps to help you through the process of buying a property:
The first step is to get a rough estimate of how much you could borrow for a mortgage. This will give you an idea of the type of property and location you could afford. It may also help you work out how much you’ll need to save for a deposit.
Some lenders, including HSBC, offer 95% mortgages that require a smaller deposit. There are also government housing schemes available to help make buying a property easier.
If you don’t have enough for a home deposit, make a savings plan. You can also create a budget to see where you can cut back and save more.
It’s a good idea to save as much as you can when planning to buy a home because:
Explore: How to save for a home deposit
When you apply to borrow money, lenders will look at your credit score before deciding whether to accept your application. It can show them how reliable you are at borrowing and repaying money.
It’s a good idea to check your credit report to make sure there are no mistakes. You can also improve your credit score to increase your prospects of getting a mortgage.
Take some time to think about what you need in a home versus what you’d like. This will help you narrow down your search when it comes to looking at properties. For example:
| What you need in a home | What you’d like in a home |
|---|---|
| At least 2 bedrooms | 3 bedrooms |
| Space for parking | A garage or own driveway |
| Outdoor space for a dog | A private, low-maintenance garden |
| What you need in a home | At least 2 bedrooms | At least 2 bedrooms |
|---|---|---|
| What you’d like in a home | 3 bedrooms | 3 bedrooms |
| What you need in a home | Space for parking | Space for parking |
| What you’d like in a home | A garage or own driveway | A garage or own driveway |
| What you need in a home | Outdoor space for a dog | Outdoor space for a dog |
| What you’d like in a home | A private, low-maintenance garden | A private, low-maintenance garden |
When making your list, think about your long-term needs. House prices can go down as well as up and it can cost money to move. For example, if you’re hoping to start a family, finding a place with room to expand may mean you won’t have to sell to buy a bigger place later on.
Location is also important. Research and visit different areas and ask yourself:
A Decision in Principle – also known as an Agreement in Principle – gives you an idea of how much you could borrow. It’s based on what you tell us, our security checks, and a soft credit check, so it won’t have an impact on your credit score.
A Decision in Principle is not a guarantee that your mortgage application will be accepted, but it can help you understand your options and what you may be able to afford.
Sharing your Decision in Principle with your estate agent can help them find the properties that are right for you.
We'll ask you a few questions about yourself and any other person you want to take out a mortgage with. It takes about 5 minutes and won't affect your credit score. Eligibility criteria apply.
With your list of requirements in hand, it’s time to contact estate agents, search for properties and arrange viewings. This is also a good time to start looking for a solicitor or licensed conveyancer.
When you find a property you want, deciding on the right price to offer can be exciting – and scary. From asking the right questions to negotiating tactics, get tips on how to make an offer on a property.
If your final offer is accepted – congratulations. If not, keep looking – your new home, at a price you’re happy with, could be just around the corner.
Once your offer has been accepted on the property, you can apply for a mortgage.
There are different types of mortgages to choose from. The one for you will depend on your financial situation, plans, and the type of property you’re buying.
If you prefer, you can speak directly with a lender or a mortgage broker to help you find and apply for a mortgage. They’ll be able to look at a variety of mortgage options for you and give you advice. Some brokers may charge a fee.
The mortgage application process can take a few weeks. It involves detailed checks of your finances and your lender may want to conduct their own valuation on the property you want to buy. If your mortgage application is approved, your lender will send you an offer.
A solicitor or licensed conveyancer will carry out the legal work, which can take between 6 to 12 weeks on average to complete. There will also be costs involved.
Among other tasks, a solicitor or licensed conveyancer will typically:
As well as the valuation your lender may have arranged for their benefit, you should also arrange an independent survey of your own to flag any potential problems. The survey itself will take a few hours and be completed by a surveyor who will then send you a report.
You can choose the type of survey you’d like, depending on how much detail you need:
Buyers in Scotland can also request a free Home Report from the seller – this contains an energy performance certificate, a property survey, and a questionnaire.
If the survey identifies any significant work that needs doing, you may be able to revisit your offer with the seller. For example, if a house has some dampness, you may be able to factor the cost of the work into the purchase price.
The exchange of contracts is when solicitors or licensed conveyancers swap signed contracts on behalf of you and the seller. It’s also when they’ll ask you to transfer your deposit over to them.
When you exchange contracts – you’re legally bound to buy the property. In Scotland, this is known as the ‘conclusion of missives’. You'll need buildings insurance in place at this point.
Buildings insurance protects you against the cost of repairing or rebuilding your home from scratch, should it get damaged from an insured risk. So, it’s important to consider getting the cover you need.
Exchanging contracts is a big milestone, when you can do a celebratory dance – if you like.
The completion date is usually 2 weeks after the exchange, but it can be as little as 1 day after or even take place on the same day. This is when you can pick up the keys to your new home and start enjoying it.
Explore: Your moving day checklist
Your home may be repossessed if you do not keep up repayments on your mortgage.
