Buying your First Home

Buying your first home in the UK generally takes around five to six months. The process requires saving a deposit, obtaining a mortgage, finding a property and completing the legal process.

1. Preparing your Finances

The Deposit: Most lenders require a minimum of 5% of the property’s value. If you are able to save 10% of more of the value for the property you will usually be able to obtain a lower interest rate on your mortgage.

Credit Score: Check and improve your credit score using platforms like Experian. There are steps that you can take to help to increase your credit score such as registering to vote.

Lifetime ISA (LISA): If you are 18–39, A Lifetime ISA (LISA) lets UK residents aged 18 to 39 save or invest up to £4,000 each tax year for their first home. The government adds a 25% tax-free bonus (up to £1,000 annually).

2. Mortgage Process

Consider using a Mortgage Broker to find the best deals and for help with your mortgage application.

Get an Agreement in Principle before viewing properties – This will demonstrate to Estate Agents that you are a serious Buyer and shows how much a Lender will be willing to lend to you.

3. Budgeting

Beyond the deposit, you need to budget for transaction costs:

Stamp Duty

First-time buyers pay zero Stamp Duty on properties up to £300,000.

For homes up to £500,000, you pay 5% on the portion between £300,001 and £500,000. (Please note for properties in Wales, Land Transaction Tax is used instead, which has different thresholds and does not have ‘first time buyer relief’).

Mortgage and Valuation Fees:

Lender arrangement and valuation fees typically total around £1,000 to £1,500.

Solicitors costs and other fees for the Legal Process

Your Solicitor will provide you with an estimate of their costs for carrying out the legal work required. This will include costings for Search Fees (typically for Local, Water, Environmental and Coal/Brine Searches) and for Land Registry fees (which are based on the value of the property).

Survey

It is always recommended to obtain a survey to check the state and condition of the property before committing yourself to purchase

4. Making an Offer

Once you find a property, make an offer via the Estate Agent. If accepted, you will need a Solicitor to handle the legal process (which is known as ‘Conveyancing’)

5. The Legal Process

Your Solicitor will receive the draft Contract from the Seller’s Solicitors. They will check the title to the property and raise any enquiries. The Seller will provide you with certain forms about the property – including what items are included in the sale and other useful information such as in respect of any works which have been carried at out the property, such as an extension. Your Solicitor will carry out searches on the property and report to you on the results. Your Solicitor will also prepare a report to you on the title and arrange for you to sign the contract documents.

Once all parties in the chain are ready, a completion date will be agreed. Exchange of contracts is the process by which the completion date is legally set and when all parties are contractually obliged to proceed. On the day of completion, the purchase funds will be sent from your Solicitor to the Seller’s Solicitors. Once the Seller’s Solicitor receives the funds, completion has taken place and you will be able to collect the keys from the Estate Agents.

If you are a first time buyer and would like a quote for our legal costs, please call our helpful and friendly team at Mosshaselhurst Solicitors on 01606 74301.