Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Property
Buying a property guide
There comes a time in most people's lives when they decide to take the property plunge. Perhaps you've reached the point where you want a place of your own; or perhaps you've been renting and had enough of paying someone else's mortgage.
There comes a time in most people's lives when they decide to take the property plunge. Perhaps you've reached the point where you want a place of your own; or perhaps you've been renting and had enough of paying someone else's mortgage. Whatever the reason, the months it takes to buy your first place are likely to be some of the most exciting - and anxious - of your life. But before you start gazing through estate agents’ windows, you need to work out how much you can afford to spend. There's no point setting your heart on a three-bedroom townhouse in Chelsea if your budget will only run to a studio flat in Chesterfield. Establish how much you can borrow (see guide), add the amount you have in savings, and you have a good idea of how much you have to spend.
Budget
Once you know your budget you can go househunting. Keep an eye on properties in the local paper, look in estate agents' windows and surf property websites. The only thing you should worry about is getting addicted to the search - paranoia about missing the perfect property could have you logging on to check out places in the middle of the night. Register with local estate agents who will, if they're doing their job properly, give you a call if an appropriate property comes on the market. This service is free and is simply a matter of giving them details of the sort of property you are looking for and your budget. However, you don't always have to sit back and wait for the estate agents to come to you. If you see an interesting property advertised, you can call the estate agents and ask about it, even if you’re registered with them. Some estate agents may try to talk you up on price ('I’m afraid you’ll need more to buy that third bedroom'), but if you know your budget is realistic, stand your ground. If they're right, and there is nothing to suit your budget in the area, you need to think about widening your search. Don't be afraid to ask the agent a few questions before you arrange a viewing - if there are certain things that would put you off a property, for example a lack of central heating, there's little point taking a look.
Priorities
It's easy to get overwhelmed when you first visit a property - particularly if you encounter a weird seller or pushy estate agent. One way to make sure you remember what to ask and look out for is to write yourself a list. Take this, and a pen, with you to viewings and don't feel embarrassed to refer to it or make notes. Every property is different but there are some key things you should look out for, things which could be expensive - or difficult - to remedy. One is noise, whether from neighbours or traffic. If you like a property, it can be a good idea to visit again at a different time of day to see if the noise level varies - for example, the road may become a rat run during the rush hour. Other things to look out for are damp - look for patches on walls and for signs that parts of the property has recently been redecorated; subsidence - look for cracks in walls; and nearby trees that could undermine the foundations. Look at as many properties as you need to before making a choice. It could take 20 viewings to find somewhere that suits you; it could take two. Your gut instinct about a property is important - but use your head too. When you have found a property you like and want to buy, you need to make an offer through the estate agent. They are obliged to pass on every offer to the seller, so it's worth a try even if your budget is way below the asking price. Just don't get carried away and increase your offer beyond your budget.
Solicitor
Once you've had an offer accepted you need to instruct a solicitor to do the conveyancing work (see our Coveyancing Guide) and make a mortgage application. The lender will organise a valuation by a surveyor who will visit the property and check it’s worth the amount you intend to pay. It's a good idea to have your own survey done to make sure there are no hidden problems - you can cut costs by getting this done at the same time as the valuation. Unfortunately, the law in England and Wales means at this point the seller is not obliged to go though with the sale. In fact, they can keep the property on the market right up to the point when you exchange contracts. Gazumping - where the seller accepts another offer after yours - is fairly rare, but if you’re worried about this possibility try making your offer subject to the property being taken off the market. Some insurers offer gazumping policies, where any money you have spent on the purchase will be covered if you do get gazumped. For most people, however, it's a matter of crossing your fingers and trying to get the purchase through as soon as possible. As long as the valuation and survey are fine and your solicitor is happy with the contract prepared by the seller's solicitor, the sale should continue without hitch. You can start talking about a moving-in date as soon as the offer is accepted, but this will only be put into writing on the day contracts are exchanged. That's the day when the sale is finally confirmed and neither you or the seller can pull out. Completion - the day when you finally own the property - usually comes two weeks later.
