Guide to buying a home

The most common way to purchase a property is with a combination of mortgage (home loan) and a deposit. Banks and other lenders usually require a deposit or contribution from you, often calculated as a percentage of the total value of the home. For example, a 25 per cent deposit on a £200,000 property would be £50,000.

How you fund this deposit is up to you. Some people use savings or equity in an existing property and others may borrow from their parents or someone else in order to get on the property ladder. Either way, working out how much money you have available is a good place to begin.

If you are funding the rest of your property purchase with a mortgage, you need to find out how much a bank or building society is prepared to lend you. In most cases this is calculated using your income, whether that’s from an employer, interest dividends from investments or from a self-employment source. A mortgage lender will require evidence of your earnings, which can be in the form of pay slips, bank statements or, in some cases, company accounts.

At Private Wealth Mortgages, we help you find out what a mortgage lender is prepared to offer when it comes to the amount you can borrow and how much interest they will charge. You can also use our mortgage calculator as a guide to the amount you could borrow. However, this is just a guide and affordability of any loan needs to be assessed as well.

If this is your first property purchase, it’s important to bear in mind there are additional costs associated with purchasing a home. You should set aside money for stamp duty, hiring a solicitor or even furnishings and decorating. And when it comes to monthly costs, you may have to consider building or home contents insurance, household bills and any grounds rent or service charges, in addition to your mortgage payments.

Once you know what you can afford, it’s time for the exciting part – finding a home! This may involve conducting searches online using websites like Right Move and Zoopla or meeting with estate agents in the area you want to buy. Look for properties within your budget and use criteria such as the type of property (flat or house) and number of bedrooms you’d like. When you spot somewhere you are interested in, request a viewing via the sales agent.

Once you have had an offer accepted, the formal procedure can begin. You must choose either a solicitor or a conveyancer to help you manage the contracts, checks and queries related to your purchase. A conveyancer is a qualified professional who specialises in property transactions. We can recommend firms that are able to help.

One of the first official steps is for a memorandum of sale to be issued by you, which is usually done with the help of the estate agent managing the sale of the property. In the mean time, both you and the seller will gather information required for the sale. This includes information packs about the property such as leasehold terms, any recent maintenance carried out or fees owed to a managing agent.

The next stage is the exchange of contracts. This is organised by the conveyancer or solicitor working on your behalf once you have provided all the information they need. Finally, when the sale is ready to go ahead officially, you will be given a completion date. This is the date on which your transfer of funds – and keys – will take place, and the home will be yours.

Trusted contacts

At Private Wealth Mortgages we can help you apply for and secure the right mortgage. We also offer guidance when it comes to any other services you may need relating to your property purchase. Throughout the home buying process, you will undoubtedly need the assistance or advice of experts such as surveyors, conveyancers, accountants or insurance providers. So for contact details of some of our trusted partners and associates, give us a call on 01403 270 006 and we’d be happy to help.