First time buyer

Now you know how much you can borrow, it’s time to start looking at properties. There are a variety of websites that advertise properties, the most used in the UK being Rightmove and Zoopla. You can also speak to local estate agents to see what they have to offer. Once you see a few properties you like, we suggest viewing them all! It may seem excessive, but this is probably one of the biggest investments of your life, so it’s important to get it right.

Once you’ve found a property you want to call home, the next step is to make an offer. This is usually through an estate agent, you don’t have to pay the estate agent any fees as you’re the buyer.

You will need to select a solicitor/conveyancer and a surveyor to assist with the process. Your surveyor will check for any problems with the property and any potential problems which they find could affect the value of the home.

Your solicitor/conveyancer will handle any legal work around the property this includes searching for anything that could affect the overall value. They also submit searches to the local council to check whether there are any planning or local issues that might also affect the property’s value.

Surveys can be seen as health checks for your property. They are detailed inspections that check a property’s condition and structure. There are a few different surveys you can choose from each varying in how much detail the report will go into. The more comprehensive the survey the more it will cost, level 1 surveys can start anywhere from £250.

Surveys may also help you renegotiate the price of the property before a sale. For example, if the survey reveals a problem with the property that will cost £10,000 to repair, you could ask the seller to lower the price by that much.

It can be a stressful time, buying your first home. Ensure peace of mind and protection when carrying out surveys and use a RICS professionally regulated surveyor.

Level 1 survey

The aim of this survey is to identify any risks, legal issues or defects. This survey will flag defects and issues but not necessarily provide advice on how to manage them. Typically the cheapest survey available, however, you may not be charged depending on the type of mortgage product you select.

Level 2 survey

This report will offer more detailed information on how to manage any of the defects or issues detected. This survey doesn’t advise on the structural integrity of the property.

Level 3 survey

This survey is a comprehensive assessment of the structure and condition of the property, providing thorough insight on how to manage any defects or issues uncovered by the survey. It will even offer an estimation into the costs associated with fixing the problems.

Finalising the offer

Once the survey is completed you may want to renegotiate the price of your new home.

There are two reasons for this:

• your survey may reveal problems with the property that could be expensive to fix. You can use this information to ask for a reduction in price
• the lender might value the property at a lower price. This means you won’t be able to match the asking price or what you originally intended to offer.

It’s this stage in the process that can often be most stressful. Problems and delays can happen for reasons including:

• the seller pulling the property out of the market
• the seller accepting an offer from another buyer
• your mortgage application being rejected

Throughout this process its important to communicate your problems with your solicitor and estate agent who will inform the seller. It’s often possible to help a situation by having open communication between all parties to prevent problems from arising.

Finalising your mortgage

If all things go to plan, contact your lender or Mortgage Adviser to proceed with the process. There is often a fee, usually called an arrangement fee, to set up the mortgage. This can be added to your mortgage, but if you choose to do so, you’ll pay interest on the fee for the life of the mortgage.

If things go to plan and there aren’t any delays, you should receive a contract to sign and complete the sale. However, before signing the documents, its important to go through details with your solicitor. At this stage, the seller is committed to the sale of the property.

The remaining funds owed for the property are now transferred from your solicitor’s account to the sellers solicitor’s account.

Once the property is registered in your name, your solicitor will arrange for the Stamp Duty Land Tax (SDLT) to be filed within 14 days of completion. First time buyers do not have to pay stamp duty unless the property value is above £425,000.