The home-buying journey

Typical timeframe: around 3–6 months from having an offer accepted to completion, although it can take longer.

Step 1: We work out how much you can afford

Before looking at properties, calculate what you could realistically spend each month and how much money you need upfront.

Your budget has two parts:

• Upfront costs: deposit, solicitor's fees, survey, mortgage fees, moving costs and any applicable stamp duty tax.

• Ongoing costs: mortgage repayments, council tax, utilities, insurance, maintenance and, for leasehold properties, service charges and ground rent where applicable.

How much could you borrow?

As a rough starting point, most mortgage lenders offer around 4 – 5.5 times annual income, but the amount varies according to your income, debts, outgoings, credit history and the lender's affordability assessment.

Remember that your deposit is added to your mortgage borrowing to determine your approximate purchase budget.

There are mortgage options available for borrowing the full cost of the property without requiring a deposit, these are often called 100% mortgages - for full details contact me at henry@hparsonsmortgages.com.

Step 2: We review your documents and paperwork

We usually require the below documents for most mortgage applications:

·        Passport or other acceptable identification.

·        Recent payslips and your P60, if employed.

·        Bank statements.

·        Details of existing loans, credit cards and monthly expenses.

·        Proof of savings and deposit.

·        If self-employed, tax calculations, tax year overviews and accounts as requested.

Lender requirements vary but having these documents ready will make your application smoother.

Step 3: We obtain your Agreement in Principle

We establish from your documents and circumstances the lender that will be most suitable for you and obtain an Agreement in Principle Certificate. This is also sometimes called a Mortgage in Principle (MIP) or a Decision in Principle (DIP).

Most estate agents and vendors require sight of an Agreement in Principle before they will have the confidence to accept your purchase offer.

Step 4: You start looking for properties

Once you have found a property send your mortgage broker the details so they can check the lender will accept an application to lend against the property.

Step 5: Make an offer

You make an offer in line with your budget established with your mortgage broker and provide this to the estate agent or vendor.

Step 6: Arrange a professional property survey

This is one of the most important steps for protecting yourself from unexpected repair costs.

The lender will always undertake a basic level survey as part of the mortgage process, but the details are not necessarily shared with you so you may want to undertake your own more detailed survey.

Common options include:

• RICS Level 2 Home Survey: often suitable for a conventional house or flat in reasonable condition.

• RICS Level 3 Building Survey: generally, more appropriate for older, altered, unusual or visibly problematic properties.

Your surveyor can identify defects, recommend further investigations and help you understand potential repair costs.

If the survey reveals serious problems, you might negotiate a lower price, ask the seller to address certain issues, or decide not to proceed before exchange.

You normally pay for your own survey, so get a quote and check precisely what is included.

Step 6: Appoint a solicitor or conveyancer

Next, you need to choose a solicitor to act for you during the purchase. Ensure you obtain a written quote specifically for the property you’re purchasing. Research the recent reviews of the solicitor as well as checking the price.

·        Check the seller's legal ownership and title.

·        Review the draft contract and property documents.

·        Arrange searches, including local authority, water and drainage, and environmental searches as appropriate.

·        Raise questions with the seller's solicitor.

·        Check relevant planning permissions and building regulation documents.

·        Review leasehold documents if buying a flat or leasehold house.

·        Arrange the transfer of funds and registration of your ownership.

Step 7: Submit your full mortgage application

Next your mortgage broker will review the current mortgage rates and lender policy and recommend the most suitable mortgage for you and submit the full mortgage application.

Remember to update your mortgage broker of any relevant changes to your circumstances that may have happened since obtaining your Agreement in Principle. Up to date documents may also be required if further payslips and bank statements have been issued to you.

Your lender will assess your finances in detail and arrange a valuation to check that the property provides suitable security for the loan.

During this stage:

1. Supply any requested documents promptly.

2. Tell your lender about any material changes to your finances.

3. Avoid changing jobs or taking out new credit without considering the impact.

4. Check the mortgage rate, fees, early repayment charges and any conditions.

5. Wait for the written mortgage offer.

A lender's valuation is primarily for the lender's benefit. It is not a substitute for an independent survey of the property's condition.

Mortgage approval can take several weeks, and the lender may ask additional questions.

Step 8: Get ready to exchange contracts

You're approaching the final stages when:

• Your mortgage offer is in place.

• You’re satisfied with your survey findings.

• Your solicitor is satisfied with the legal searches and enquiries.

• The purchase price and contract terms are agreed.

• Your deposit and other completion funds are ready.

• A completion date has been agreed.

Your conveyancer will explain the contract and ask you to approve the final arrangements.

Do not exchange contracts until you are confident you can proceed. In England, exchanging contracts makes the purchase legally binding. Pulling out after exchange can have serious financial consequences.

Step 9: Prepare for completion

In the days before completion, your conveyancer will give you a final statement showing the money you need to provide.

This normally includes:

• The remaining purchase price after your deposit and mortgage funds.

• Legal fees and disbursements.

• Stamp Duty, if applicable.

• Any other agreed costs.

Transfer your money to your solicitor's verified client account in good time.

Fraud warning: property transactions are targeted by criminals who impersonate solicitors and send fake bank details. Verify account details by calling your solicitor using a trusted phone number before transferring funds. Be particularly suspicious of last-minute changes to bank details.

You should also:

• Book removals or arrange a van.

• Arrange utilities and broadband.

• Update your address with relevant organisations.

• Prepare your identification and keys for moving day.

Step 10: Completion day — collect your keys!

Completion is the day your purchase is finalised.

Usually, the process works like this:

1. Your mortgage lender sends the mortgage funds to your conveyancer.

2. Your conveyancer transfers the outstanding purchase money to the seller's solicitor.

3. The seller's solicitor confirms that the money has arrived.

4. The estate agent is authorised to release the keys.

5. You collect the keys and move into your new home.

Your conveyancer will also arrange the required tax filing and registration of your ownership with HM Land Registry.

Congratulations — you're now a homeowner!