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Buying a house is a significant financial decision, and the process can vary depending on personal circumstances and the property market conditions.
For those who are looking to buy their first home or those who haven’t moved for a while, we have produced a very basic guide.
Financial Planning: Review your finances and determine your budget for buying a house. Be realistic and consider factors such as your income, existing debts, and potential mortgage rates. Save for a deposit; a larger deposit may give you access to better mortgage deals.
Mortgage Pre-Approval: Make sure you see your independent Mortgage broker, preferably one fully qualified as a Financial Adviser as they will be able to review you situation and advise on the different ways to fund your purchase as well as the current rates available to you. Once you have established a viable budget you can start shopping around.
Market Research: Learn about the property market in the area where you wish to live. Research property values, market trends, and potential future developments. You can do this on various well-known websites such as Rightmove and Zoopla and, of course, by visiting.
Location and Amenities: Consider the location of the property in relation to your needs, such as proximity to work, schools, public transport, and amenities. Remember the availability of a highly rated school in your catchment area can increase property values.
Future Resale Value: Consider the potential resale value of the property. Remember you may love the quirky low ceilings or the wacky layout, but a prospective future purchaser may not.
Property Inspection: Arrange for a thorough property inspection to identify any potential issues or necessary repairs. This can help avoid unexpected costs after purchase. Some lenders, now even on a purchase, may do a ‘drive by’ or’ desktop’ valuation and this may leave you very exposed if you assumed the “free valuation” was a physical inspection of the property and it’s condition.
Additional Costs: Be aware of additional costs associated with buying a house, such as stamp duty, legal fees, survey costs, and potential renovation expenses. Ensure you are aware of the costs in advance with tools such as the Stamp Duty Calculator on the Gov.UK website.
Negotiation Skills: Remember the price advertised is not a precise science, so don’t be afraid to haggle. Be prepared to negotiate on price and consider other factors such as inclusion of furnishings or potential repairs. If you go in at a lower figure and they decline your initial offer, keep climbing to reach the limit of which you wish to pay. Bear in mind that if you bid over the asking price, most mortgage lenders will base their lending limits on the value of the house rather than on the purchase price. So anything over the value and the required deposit will have to be funded by you.
Legal and Conveyancing: You will require a solicitor or conveyancer to handle the legal aspects of the property purchase. Although it is possible to do your own conveyancing it is highly unlikely any lender will agree to this. They will help with the paperwork, searches, and ensure the process is legally sound.
Patience: Be patient throughout the process. Buying a house can take time, and it's important not to rush into a decision. Take your Solicitors advice, they are there to protect you, not put barriers in your way as it might sometimes appear.
We at Alexander Beard have decades of experience in helping people buy their first or next home.
We will also do a full review of current circumstances; ensure you have the correct protection plans in place and ensure the Mortgage is affordable for you both now and sustainable should rates fluctuate in the future**
For more information about this service contact Mike Shakespeare mike.shakespeare@abg.net Mike Shakespeare Financial Planning Director (UK)
**Your home may be repossessed if you do not keep up repayments on your mortgage.