Buying a home is one of the biggest financial decisions most people make. The process can feel long and confusing, but it follows a fairly predictable set of steps. This guide walks through them in order for England, Wales and Northern Ireland.
If you’re buying in Scotland, the process is quite different — offers are made through solicitors and become binding much earlier. Read our guide to buying in Scotland instead.
Key takeaways
- Work out your budget, including all the extra costs, before you start viewing.
- Get a mortgage agreement in principle so sellers and agents take your offer seriously.
- Nothing is legally binding until exchange of contracts, so either side can pull out before then.
- Budget for a survey, legal fees, searches and any Stamp Duty or Land Transaction Tax.
- Expect around four to six months from accepted offer to completion.
1. Set your budget and save a deposit
Start by working out what you can realistically afford. Lenders look at your income, your regular outgoings and your credit history. As a rough guide, many lenders will lend around four to four-and-a-half times your annual income, although this varies.
Our affordability calculator gives you an estimate, and the mortgage calculator shows what the monthly repayments might look like.
How much deposit?
Most mortgages need a deposit of at least 5% of the property price. The bigger your deposit, the lower your loan-to-value and usually the better the interest rates on offer. Common thresholds are 10%, 15%, 25% and 40%.
If you’re a first-time buyer, look at schemes such as the Lifetime ISA or Shared Ownership in our government schemes guide.
Don’t forget the other costs
On top of the deposit you’ll typically need to budget for:
- Stamp Duty Land Tax in England and Northern Ireland, or Land Transaction Tax in Wales — use our stamp duty calculator
- Conveyancing (legal) fees and searches
- A survey
- Mortgage arrangement and valuation fees
- Removals, furniture and any immediate repairs
Our cost of buying calculator brings these together in one place.
2. Get a mortgage agreement in principle
An agreement in principle (AIP) is a statement from a lender saying how much it would probably lend you, based on a quick check of your finances and credit file. It isn’t a guaranteed offer, but estate agents often ask to see one before they’ll put your offer forward.
You can get an AIP directly from a lender or through a mortgage broker. A broker can search a wider range of lenders and may be able to help if your circumstances are less straightforward.
3. Find a property and view it
Search online property portals, register with local estate agents and walk around the areas you like. When you view a property:
- Visit more than once, ideally at different times of day.
- Look for damp, cracks, condition of windows and the roof, and the age of the boiler.
- Ask why the seller is moving and how long they’ve lived there.
- Check the council tax band, the EPC rating and broadband and mobile coverage.
Material information on listings
Property listings in England, Wales and Northern Ireland are expected to include material information — the facts a buyer needs to make an informed decision. This covers things like the price, tenure, council tax band, utilities, parking, flood risk and any known building safety issues. If something important is missing from a listing, ask the agent. See material information in our glossary.
4. Make an offer
Offers are usually made through the estate agent, verbally or by email, and are always “subject to contract” and subject to survey. The agent must pass every offer to the seller.
Be ready to show your agreement in principle, proof of your deposit and the details of your solicitor or conveyancer. Sellers often favour buyers who are chain-free or in a short chain, even if their offer is slightly lower.
Once your offer is accepted, the property is usually marked as sold subject to contract. At this stage there is still a risk of gazumping, where the seller accepts a higher offer from someone else.
5. Instruct a conveyancer and arrange searches
A solicitor or licensed conveyancer handles the legal side of the purchase. They will:
- Check the title and the tenure — freehold or leasehold
- Order local authority, water, drainage and environmental searches
- Raise questions (enquiries) with the seller’s solicitor
- Review the lease, if the property is leasehold
- Handle the transfer of money and register you as the new owner
Get quotes from several firms and check what’s included. Searches and other disbursements are usually charged on top of the legal fee.
6. Book a survey
Your lender will arrange a valuation to make sure the property is worth what it’s lending. This is not a survey and won’t tell you much about the condition of the home.
An independent RICS survey can uncover problems such as subsidence, damp or roof defects before you’re committed. If it finds issues, you can renegotiate the price, ask the seller to fix them or walk away. Read our surveys explained guide to choose the right level.
7. Get your mortgage offer
Once you’ve chosen a mortgage, you’ll make a full application. The lender checks your income, credit history and the valuation before issuing a formal mortgage offer. Offers are typically valid for around three to six months, so keep an eye on timescales if the chain is slow.
Your conveyancer will review the offer and any special conditions attached to it.
8. Exchange of contracts
When the searches, enquiries, survey and mortgage offer are all in place, you’ll sign the contract and transfer your deposit (often 10%, though 5% may be agreed) to your conveyancer.
At exchange of contracts, the solicitors swap signed contracts and a completion date is fixed. From this point the deal is legally binding. If you pull out after exchange, you’re likely to lose your deposit and could face further claims.
You’ll normally need buildings insurance in place from exchange, because you’re now responsible for the property.
9. Completion
On completion day, your conveyancer sends the remaining money — your mortgage funds plus the rest of your own money — to the seller’s solicitor. Once the seller’s solicitor confirms receipt, the estate agent releases the keys.
Completion is often between one and four weeks after exchange, but it can happen on the same day if everyone is ready.
After completion, your conveyancer pays any Stamp Duty or Land Transaction Tax due and registers you as the owner with HM Land Registry (or Land & Property Services in Northern Ireland).
10. Moving in
Before moving day:
- Book removals or a van well in advance.
- Tell your council, utility suppliers, bank, employer and DVLA about your new address.
- Take meter readings when you arrive.
- Find the stopcock, fuse box and boiler controls.
- Change the locks if you’re unsure who has keys.
Common pitfalls to avoid
- Overstretching your budget. Leave a buffer for repairs and rate rises.
- Skipping the survey. It can cost far more to fix a hidden problem later.
- Ignoring the lease. For flats, check the remaining lease length, ground rent and service charges.
- Changing your finances mid-purchase. Avoid new credit or a job change before completion if you can, as lenders may recheck.
This guide is general information, not legal or financial advice. Rules change — check GOV.UK or speak to a qualified professional.