For many visitors to this site this may seem to be a question that you wonder why we ask. How do I buy a property? Is like asking how do I go shopping for some. but consider the millions of UK web users who have never purchased property. This site is for there benefit too.
How do I buy a property? It’s So Confusing!
Firstly you will need to know your spending power. Unless you have been gifted a lump sum then you will need to speak to your bank or building society to arrange a mortgage.
A mortgage is simply a loan which is particularly low interest to enable a way of borrowing money to buy a house. However, unlike other loans a mortgage is secured against your house, which means if you repeatedly miss repayments your provider could seize your property.
There are normally two types of loans, a repayment mortgage or an interest-only mortgage?
A repayment mortgage means your monthly payment will go towards paying both the interest charges on your loan and the loan itself. So by the end of the mortgage term your loan will be paid off in full and you will own your house. With an interest-only mortgage, on the other hand, as the name suggests, you only have to pay the interest charges on your loan each month. This means that your monthly payments will be much cheaper, but when your mortgage term ends you will still be left with the loan to pay off. It’s crucial therefore that you have a well thought through savings or investment plan to do this in place from the start.
Once you have your agreed mortgage in principle, you can then take advantage of your local estate agents and some great online tools. You would of no dowbt discovered Rightmove.co.uk and Zoopla.co.uk. We have reviewed both sites in past articles, so do read up on them.
Once you have seen a few properties and arranged a viewing, shortlist the ones that suit you, maybe take a friend for advice. Make sure you can afford to make an offer that is sensibly close to the asking price.
If you have agreed a price, the Estate agent will ask to see your affordability. Its at this point the agreed mortgage starts to become a reality.
You will need to make an application for your mortgage, arrange a solicitor or conveyancer to handle the legal issues, and take advice from the estate agent as he will be as keen as you for all parties to complete the deal (he doesnt get paid unless it completes)
Then you should consider a survey on your potential property. Many lenders will require this as they are putting there money against the property.
Normally the process from agreeing a price to moving in takes around 2 to 3 months.
Then open the champagne as you probably have plenty of DIY ahead of you, but you made it into your first property!
So feel free if you can add a few tips in helping our new visitors asking How do I buy a property? or any other questions that may be relevent.
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