A Complete Guide to Buying a UK Home

Buying a home is one of life's most exciting milestones, but there's no denying it comes with a lot of moving parts. Between property chains, legal jargon and finding the right mortgage, it's easy to feel a little overwhelmed.

The good news is that knowing what happens, and when, makes the whole thing far less daunting. Whether you're buying your first home or moving up the ladder, this guide walks you through every step, from saving your deposit to picking up your keys.

The home-buying process, step by step

Here's the typical order things happen in when you buy a home in England, Wales or Northern Ireland. If you're buying in Scotland, the process is a little different, and we've explained how further down.

1. Check your finances and save your deposit

Before you start browsing property websites, it's worth getting a clear idea of what you can afford. Start by looking at your savings to see how much you can put down as a deposit.

Most lenders will want a deposit of at least 5% to 10% of the property's price. If you can save more, you'll usually have access to more lenders and lower interest rates.

This is also a great time to:

• Check your credit reports with the three main credit reference agencies (Experian, Equifax and TransUnion), and ask for any mistakes to be fixed

• Register on the electoral roll at your current address, if you haven't already

• Gather your documents, such as payslips, bank statements, proof of address and ID

• Keep your finances steady, by avoiding new credit applications and keeping on top of your bills

Top tip: You can register for a free, cancel-anytime trial with Checkmyfile to review your credit reports for free

2. Budget for the extra costs

Your deposit is the biggest upfront cost, but it isn't the only one. You'll also need to budget for:

• Stamp duty. Depending on where you buy, the price of the property, and whether you're a first-time buyer, you may need to pay a property tax. In England and Northern Ireland, this is Stamp Duty Land Tax. Scotland and Wales have their own versions.

• Legal fees. Your conveyancer or solicitor will charge for handling the legal side of your purchase, plus the cost of searches and Land Registry fees.

• A survey. An independent survey checks the condition of the property. The cost depends on the type of survey and the size of the home.

• Mortgage fees. Some mortgages come with an arrangement or product fee, which you can sometimes add to your loan. There may also be a valuation fee.

• Broker fees, if your broker charges one. They should always tell you about this upfront.

• Moving costs, such as a removal company, plus furniture and essentials for your new home.

As a rough rule of thumb, it's a good idea to set aside an extra 2% to 4% of the property's price to cover these costs.

3. Speak to a mortgage broker

Before you apply for anything, it's well worth speaking to a mortgage broker. A whole-of-market broker will look at your income, outgoings and deposit to give you a realistic idea of what you can borrow and what your monthly payments could look like.

A broker can also:

• Search the market for deals that suit you, including some you won't find on the high street

• Help with more complex situations, such as self-employment, gifted deposits or bad credit

• Point you towards lenders that are most likely to say yes, which can help you avoid unnecessary rejections on your credit file

If you'd like a free, no-obligation chat, one of our friendly advisers at Echo Finance would be happy to help - get in touch with us below.

4. Get an agreement in principle

An agreement in principle (AIP), sometimes called a decision in principle (DIP), is a written estimate from a lender of how much they're likely to let you borrow.

It's usually free and quick to get, and most lenders only carry out a soft credit search, which won't affect your credit score. Many estate agents will ask to see an AIP before they take your offer seriously, so it's worth getting one before you start viewing.

You don't have to use the same lender for your final mortgage. An AIP simply shows sellers that you're a serious buyer.

5. Find your home and make an offer

Now for the exciting part! Register with local estate agents and set up alerts on property websites for homes in your budget and area.

When you go to viewings, take your time:

• Visit more than once, ideally at different times of day

• Look for signs of damp, cracks or poor maintenance

• Ask about the boiler, windows and roof, and how old they are

• Check the energy performance certificate (EPC), which gives you an idea of running costs

• Find out whether it's freehold or leasehold

If a property is leasehold, check how many years are left on the lease and what you'll pay in ground rent and service charges. Short leases can make a property harder to mortgage and sell.

When you find the right home, you can make an offer through the seller's estate agent. Don't be afraid to negotiate, especially if the property needs work or has been on the market for a while.

Once your offer is accepted, ask the agent to take the property off the market. This can help reduce the risk of:

• Gazumping, where the seller accepts a higher offer from someone else

• Gazanging, where the seller changes their mind and pulls out of the sale altogether

6. Instruct a conveyancer or solicitor

You'll need a conveyancer or property solicitor to handle the legal side of buying your home. It's a good idea to get quotes while you're still house hunting, so you can instruct one as soon as your offer is accepted.

Your conveyancer will:

• Request the draft contract from the seller's solicitor

• Carry out local searches, which check for things like planning issues, flood risk and nearby developments

• Review the property's legal documents, including the title and any lease

• Raise questions with the seller's solicitor about anything that needs clarifying

Your broker can often recommend a conveyancer and help keep everyone in touch, which can make a big difference to how smoothly things go.

7. Make your full mortgage application

Once your offer is accepted, it's time to turn your agreement in principle into a full mortgage application. Your broker will help you put this together and check everything is correct.

The lender will carry out a full credit check and ask for proof of your income, bank statements and ID. They'll also arrange a valuation of the property to make sure it's worth what you're paying.

If everything checks out, the lender will send you a formal mortgage offer. Offers are usually valid for around three to six months, depending on the lender.

If your application is declined, try not to panic, and don't rush into applying again elsewhere. Speak to your broker first, as multiple applications in a short space of time can affect your credit records.

8. Book a survey

The lender's valuation is for their benefit, not yours, and it won't tell you much about the condition of the property. To protect yourself, it's well worth booking an independent survey. There are three main types:

• Level 1 (Condition Report). A basic overview using a simple traffic-light rating. Best for newer homes in good condition.

• Level 2 (HomeBuyer Report). Highlights issues such as damp, subsidence or repairs needed. Suitable for most standard homes in reasonable condition.

• Level 3 (Building Survey). A detailed inspection of the property's structure. Recommended for older, larger, unusual or run-down homes, or if you're planning major work.

If your survey uncovers problems, you may be able to negotiate a lower price or ask the seller to fix them before you complete. This can easily make the survey pay for itself.

9. Review the contract and arrange insurance

Your conveyancer will go through the search results, the seller's property information forms and anything your survey has flagged. Once all their questions have been answered, they'll go through the contract with you, and you'll sign it.

This is also the time to arrange your insurance. If you're buying a freehold home, you'll usually need buildings insurance in place from the day you exchange contracts, as that's when you become responsible for the property. Your lender will usually require this as a condition of your mortgage.

If you're buying a leasehold flat, the building is often insured by the freeholder or management company, but you'll still want contents insurance once you move in.

It's also a good time to think about protecting your mortgage with life insurance, critical illness cover or income protection, so your home is safe if the unexpected happens.

10. Exchange contracts

Exchange is when you and the seller swap signed contracts through your solicitors. At this point, the sale becomes legally binding, and you'll agree on a completion date.

You'll usually pay a deposit at exchange, often around 10% of the purchase price, through your conveyancer. If you pull out after exchanging, you could lose this deposit and may face further legal action, so make sure you're completely happy before you get to this stage.

Now is a great time to book your removal company.

11. Completion and moving day

Completion day is moving day! Your lender sends the mortgage funds to your conveyancer, who pays the seller's solicitor. Once the money has arrived, the seller's solicitor confirms completion, and you can collect your keys from the estate agent.

After completion, your conveyancer will pay any stamp duty due on your behalf and register you as the new owner with HM Land Registry.

If you can, try to arrange a final look around the property just before completion, to check it's in the condition you expected and that any agreed fixtures and fittings are still there.

Buying a home in Scotland

The process in Scotland works a little differently. Here are the main differences:

• Home Reports. Sellers must provide a Home Report, which includes a survey, an energy report and a property questionnaire. This means you usually won't need to arrange your own survey, although some buyers still choose to.

• Offers are made through a solicitor. You'll usually need to have a solicitor and your mortgage in place before you make an offer.

• Closing dates. Popular homes may have a closing date, where buyers submit their best offers by a set time.

• Binding agreements come sooner. Once your solicitor and the seller's solicitor agree the terms, known as "concluding missives", the deal becomes legally binding. This is usually earlier in the process than in the rest of the UK, which means gazumping is less common.

• Land and Buildings Transaction Tax (LBTT) is paid instead of stamp duty.

How long does it take to buy a home?

Once your offer is accepted, it often takes around three to six months to complete. Every purchase is different, though, and some move much faster or slower.

Here's a rough guide to how long each stage can take:

The biggest factor is usually the property chain. If you're a first-time buyer purchasing an empty home or a new build, things can move quite quickly. If you're part of a long chain, where everyone needs to line up their sales, mortgages and moving dates, delays are more likely.

Tips to keep things moving

• Get your mortgage sorted early, ideally with an agreement in principle before you start viewing

• Instruct a conveyancer straight away once your offer is accepted

• Reply to questions and requests quickly, whether they come from your solicitor, lender or broker

• Book your survey promptly, so any issues come to light as early as possible

• Check in regularly with your estate agent and solicitor for updates

Tips for first-time buyers

Buying your first home is a big learning curve. Here are a few tips to give you a head start:

• Look into government schemes. Schemes such as Freedom to Buy, Shared Ownership and the Lifetime ISA could help you buy sooner. Your broker can tell you which ones you might qualify for.

• Make the most of first-time buyer stamp duty relief. You may pay less stamp duty, or none at all, depending on where you buy and the property price.

• Don't stretch yourself too far. Just because a lender will offer you a certain amount doesn't mean you have to borrow it all. Leave some breathing room in your budget for bills, repairs and life's surprises.

• Explore family support. If you're struggling to save a deposit, options such as gifted deposits, guarantor mortgages or joint borrower, sole proprietor mortgages could help.

• Check every detail. From your credit reports to your mortgage offer, double-check everything. Even a misspelt name can cause delays.

Tips for home movers

If you already own a home, moving can be a little more involved, as you'll be selling your current property while buying your next one.

• Check whether you can port your mortgage. Many mortgages are "portable", meaning you can take your current deal with you to your new home. This can be really useful if you're on a good rate or would otherwise pay early repayment charges. If you need to borrow more, your lender may offer you a separate deal for the extra amount.

• Compare porting with a new mortgage. Sometimes paying an early repayment charge and switching to a new deal can work out cheaper overall. Your broker can help you weigh this up.

• Plan your chain carefully. Ideally, you'll want your sale and purchase to complete on the same day. If there's a gap, you may need to arrange temporary accommodation, or look into short-term finance such as a bridging loan.

• Budget for stamp duty. As a home mover, you won't qualify for first-time buyer relief, so make sure you factor in the full amount.

• Think about your selling costs, such as estate agent fees and your own conveyancing.

Our expert says

Why choose Echo Finance?

Buying a home is likely to be one of the biggest financial decisions you'll ever make, so it makes sense to have experts on your side. At Echo Finance, our friendly advisers will support you from your first conversation right through to getting your keys.

Here's why homebuyers choose us:

• FCA-regulated mortgage advisers you can trust

• We compare deals from across the market to find the right one for you

• Expert support with more complex applications, such as self-employed income or bad credit

• We're 5-star rated on leading review websites

Ready to take your first step towards your new home? Get started here for a free, no-obligation chat with one of our advisers.