Propertymark’s guide to get you from house hunter to homeowner

The homebuying and selling process is complex and can seem daunting. This is why Propertymark has compiled a useful guide for buyers who are taking their first or next steps onto the property ladder to help navigate through some of the intricacies of homebuying.

Start with your finances and get the ball rolling

Here are some tips to assist you with figuring out your affordability:

• Have a realistic expectation of what you might be able to borrow; do not put yourself under pressure. Check your scheduled monthly outgoings vs income each month as they are closely scrutinised within the borrowing process. It is important that you are consistently paying your bills and that you don’t have any debt that is potentially unmanageable.

• Many lenders have mortgage calculators on their websites to help you understand how much money you can potentially borrow for your first or next home purchase. At this point it is important to note that any figure obtained from an online calculator is only an indication of how much you may be able to borrow; the actual amount will be subject to further background checks as you undertake the full application process.

• Apps and websites which track your credit history are helpful tools to better assess your current credit score. This will play a significant role in securing the funding you might need to buy your first or next property.

• Try and save as much money as possible for your deposit; this can help you secure more favourable mortgage rates from a lender. It is also important to build in some contingency funding for unexpected happenings, such as an emergency repair.

• Investigate various approved support schemes, such as specialist savings accounts from trusted providers or government backed initiatives. Equally, be aware of potential scams and ensure you carefully investigate adverts and offers.

• Factor in purchase-costs such as professional fees, surveys and searches, legal fees, moving expenses, and tax (Stamp Duty if you live in England or Northern Ireland/Land Transaction Tax if you live in Wales/Land and Buildings Transaction Tax if you live in Scotland).

• It is vital that you can provide full and approved identification and proof of address at agreement of purchase. This will be required by your mortgage lender/adviser, solicitor, and estate agent in compliance with the UK Government’s Anti-Money Laundering regulations.

Moving home? Know your position

Getting an accurate valuation for your current property, should you have one, from a qualified estate agent can give you a strong idea as to how much your property is worth. Furthermore, you can use your latest mortgage statement to work out how much equity you have to move up the property ladder.

Speak to a qualified mortgage adviser

Once you have completed all the steps above, it is important that you:

• Speak to a qualified mortgage provider/adviser and get an agreement in principle. It helps give you an idea as to how much money you may have available to borrow.

• Ensure that the mortgage adviser/broker is accredited by the Financial Conduct Authority.

• Check online reviews and closely consider who might be best for you work to work with. You can consider independent mortgage advisers or services offered by many high street lenders.

• You should always fully consider wider options available without bias or pressure.

• It can be helpful to consider relevant mortgage/life protection policies that can help protect you and your loved ones should anything unexpected ever happen before committing to such an important financial agreement – this aspect is optional and will usually be discussed at the mortgage application stage.

Have you considered buying or selling a house by auction?

Property auctions are particularly beneficial for those looking to buy or sell with pace and clarity. Sellers are also able to work with a fixed completion date, typically 28 days, and this choice can better suit chain-free buyers too.

• Use Propertymark’s Find an Expert tab on their website to see if there is a qualified NAVA auctioneer near you (https://www.propertymark.co.uk/find-an-expert.html.)

• Alternatively, check to see if an estate agency near you has an auctioning division which may be able to assist you.

• Although it generally takes less time to buy and sell via auction, you can still view the property in the same way you would with a traditional estate agent.

View with confidence

Here are some important tips to help ensure any property you view becomes your dream home:

• Do not be tempted to only look at things that would match the “dream home” spec; restricting yourself too tightly can get in the way of full consideration of all the market available to you.

• Consider viewing several properties to help build a more solid benchmark of what is potentially available within a particular area and what properties best fit your personal preferences within your budget.

• Give time to explore the potential area. Get to know its aspects such as community amenities and initiatives, transport links, health facilities, local policing, standards of educational provision, and potential job opportunities.

• Consider the credentials of the property agent you choose to work with. Propertymark’s Find an Expert tool can also help you find a qualified estate agent nearby: https://www.propertymark.co.uk/find-an-expert.html. Using an estate agent with a defined qualification will help give you peace of mind and the opportunity for redress should you encounter any issues.

• Do not be afraid to ask questions – the estate agent will always do their best to answer them.

• Propertymark has provided this useful link to help you prepare for a viewing: https://www.propertymark.co.uk/viewingchecklist.

For wider context, here are the legal minimum requirements for both sales and lettings across all UK nations. However, it is important to note that many agents have chosen to supersede the minimum requirements within each nation and hold recognised qualifications, better demonstrating their commitment to quality.

Take your time

It might be exciting to think about quickly placing an offer for your next potential home, but there are lots of additional aspects to consider. For example:

• Ask for a second viewing if you are unsure about a property and maybe take a friend or a family member who can help objectively notice aspects you might have missed during any first viewing.

• Retain thorough notes of any observations you made while viewing the property, and of any conversations with estate agents where needed.

• Should you be considering a property with multiple interested buyers, the agent should communicate this with you, giving you the opportunity to consider whether you should make an increased offer or not. It is important to carefully consider your position based on your knowledge of your finances and the property – preparation is key at this moment.

• If the seller is considering alternative offers, this should be communicated to you in a timely fashion, although ultimately it is the seller who makes the final decision as to which offer to accept and when.

Making an offer

Once you have a firm mortgage offer in place, you are then best placed to make an offer on a property. If agreed, the purchase process can formally begin. In England and Wales, the negotiations are usually done at offer stage and the full mortgage application submitted immediately following acceptance, subject to contract. However, it is important to ask questions on aspects you might not be clear on.

This will help avoid any confusion or misunderstanding regarding paperwork, and potentially complex legal issues down the line.

Don’t skip the survey

• It is important to consider having a survey completed on the property you might like to purchase. The process assesses the structural integrity of the property and visible condition. It will scrutinise roofing, walls, floors, plumbing, and electrics. It may identify issues connected to dangerous construction material (such as asbestos), as well as an assessment on current or future maintenance issues. It can identify defects such as dampness, subsidence, issues with windows and timber related problems (such as dry rot or woodworm).

• There are different levels of report available, which can also be accompanied by specialist reports. Details of the services available are provided by individual survey companies.

• You can find details of qualified surveyors at: https://www.ricsfirms.com.

Understanding conveyancing

Conveyancing is the legal stage of the homebuying and selling process that must be completed by a legally qualified conveyancer.

• Conveyancing at its core assesses the legal suitability of the purchase in confirming you are buying the property you think you are buying. It involves contract preparation, local authority searches, drainage and water searches, and environmental searches. It also includes registering the property with authorities, examination of the title and contract, exchange of contracts between the buyer and the seller, transferring funds, registering the new owner with the Land Registry, and the payment of property taxes dependent upon which part of the UK you live in.

• Scotland differs from the rest of the UK here because the offer and acceptance process creates a binding contract (referred to as ‘conclusion of missives’) much earlier than the exchange of contracts in the other UK nations.

• You can find details of licensed conveyancers here: https://www.gov.uk/selling-a-home/finding-solicitor-conveyancer.

Preparing for moving day

You should leave yourself time to prepare for moving house. Here are some useful steps to take before the big move:

• Once you are happy with your planned purchase, make sure that you are organised with the packing alongside contacting any removal company.

• It can be worth asking for permission to get measurements to fit in appliances like fridges.

• Some buyers like to get boilers and electrics checked, even if the seller can provide proof that they were recently checked, serviced or fixed. Ensure all checks or repair work are completed by an engineer who is on the Gas Safe register and or a NICEIC regulated electrician, for example. This is a legal requirement for gas and electrical work.

• Ensure all insurance policies you hold are transferred from your old property to your new one – this can include buildings and contents, car insurance, life insurance plus many more too.

• Do not forget to inform your chosen utility companies, your local council, the banks you use, your employer, etc, about your new address. Propertymark has compiled a useful list of bodies you need to inform about your house move for you.

Ian Harris, NAEA Propertymark President, said:

“Purchasing a property is one of the biggest commitments people generally make within their lifetime. It is a process that is complicated and needs precise communication, background checks, and dedication to complete on the proposed purchase.

“Buying a house should be an exciting time, but it can also be stressful, especially when property chains stall or collapse. Being involved in both buying and selling a property often never feels familiar and it is important to have a background knowledge of the process.”