How to buy a house in the UK

Planning

Buying a house is a significant commitment and should be planned well in advance. This allows ample time to save for a larger deposit and explore potential areas and properties. Here are some tips to help you prepare:

1. Save a Larger Deposit: While saving for a deposit is crucial, ensure you also have enough funds to cover additional costs such as legal fees, moving expenses, stamp duty, and surveyor fees. Use online calculators to estimate these costs. MoneyHelper offers a useful tool for this.

2. Improve Your Credit Score: A good credit score is essential for securing a mortgage. Improve your credit score by registering to vote, using and paying off your credit card monthly, avoiding defaults on payments, and limiting credit applications. Check your credit score on websites like Experian.

3. Research Property Prices: Start looking at properties in your desired areas early. This will give you an idea of property prices and the supply and demand in those areas.

4. Check Your Borrowing Capacity: Use mortgage borrowing calculators to determine how much you can borrow based on your salary and monthly commitments. This will help you understand what kind of property you can afford.

Purchasing

Once you are ready to make a purchase, follow these steps:

1. Speak to an Adviser: Consult with a mortgage adviser to discuss your options and get an idea of how much you can borrow. This initial conversation can help answer any general questions you have.

2. Get an Agreement in Principle: If required, obtain an agreement in principle to prove your borrowing capacity to estate agents before making an offer.

3. Make an Offer: After viewing properties and deciding on one, make an offer. Your mortgage adviser will guide you through the next steps, including gathering the necessary information to find a suitable mortgage product.

4. Submit Documentation: Provide the required documentation to your mortgage adviser for the full application. This may include:

   • Proof of ID: Passport or driver’s license.

   • Proof of Address: Council tax bills, utility bills, or bank statements dated within the last three months.

   • Employment Proof: Last three months’ payslips and corresponding bank statements.

   • Self-Employment Proof: Minimum of two years’ SA302 and tax year overviews from HMRC, or certified accounts from your accountant.

   • Proof of Expenses: Bank statements for any other accounts to confirm your commitments and expenditure.

   • Gifted Deposits: A letter from the person gifting the deposit confirming it is a gift and not repayable, along with proof of how the money was obtained if required.

5. Mortgage Application: Your mortgage adviser will keep you updated on the progress of your application and inform you if any additional information or documentation is needed. Once approved, the lender will send you a mortgage offer, usually valid for 3-6 months.

By following these steps, you can navigate the process of buying a house in the UK with transparency and confidence.