Compare residential purchase quotes with UK's top insurers!
- Learn the step-by-step process of buying a residential property
- Get personalised advice based on your needs
- Speak to our residential purchase expert - free!
Here's the process of purchasing a residential property:
Stage 1: House Hunting
In this initial stage, your primary task is to identify your dream house, but also keep in mind that it aligns with your budget and meets your long-term and short-term requirements. You can do this by:
- Exploring property listings online
- Attending open houses
- Working with a real estate agent who can assist you in finding suitable options.
It’s essential to determine how much you can afford and consider factors like location, size, and amenities when selecting potential homes.
Stage 2: Make an Offer
Once you’ve found a property that you’re interested in, the next step is to make an offer to the seller. Your offer should specify.
- The price you’re willing to pay for the property.
- Any conditions you’d like to include, such as repairs or specific terms of the sale.
Note: Negotiations may occur between you and the seller until both parties agree on the terms of the offer.
Stage 3 – Legal Checks
After your offer is accepted, Monefi will help you engage with the services of a solicitor and a surveyor.
- The solicitor will handle the legal aspects of the transaction, including the necessary paperwork and contracts.
- The surveyor will assess the condition of the property to ensure there are no hidden issues that could impact your decision.
Valuation Report:
A valuation report is carried out by the lender to ensure that the property’s value matches the price you’re willing to pay. By this, the lender ensures that the property is a suitable security for the mortgage. However, it’s important to note that this report is not exhaustive and may not uncover all potential repairs or maintenance issues.
*Cost: The cost of a valuation report typically ranges from £250 to £1,500, depending on the property’s value. Some lenders do offer a free valuation report, and this can be discussed with Monefi.
Property Survey:
While the valuation report focuses on the property’s value for the lender, it’s highly advisable to commission a more comprehensive property survey to avoid unexpected and costly issues in the future. These reports are not required for the mortgage, but for your own peace of mind. There are usually 2 upgrades from a valuation report:
A mid-level report that focuses on everything that the professional surveyor can see during his inspection. The report usually provides a red-amber-green status with Green meaning there are no foreseeable issues, Amber meaning possible issues in the future and Red meaning there is a more immediate requirement for remedial work. Homebuyers will nearly always have a Red status for Electrical and Gas installations, as they recommend a qualified engineer to ensure these are safe.
A full structural survey is the most in-depth report, but also the most expensive. The structural survey will cover everything in the homebuyers report, as well as a structural report on the building including the roof, walls, windows, doors and external aspects of the property.
Benefits: A property survey can uncover hidden problems that might not have been apparent during your initial inspections. If the survey reveals a significant issue that will require, for example, £3,000 in repairs, you can use this information to negotiate with the seller. You may request a reduction in the purchase price to account for the necessary repairs, potentially saving you money and ensuring you make an informed decision.
Stage 4 - Finalise the Deal and Mortgage:
With legal matters and property inspections underway, you’ll need to finalise the purchase details. This includes confirming your mortgage financing, which is the loan you need to buy the house. Monefi helps you to secure a mortgage that suits your budget and financial situation. We ensure that you have the necessary funding in place to proceed.
Stage 5 - Contract Exchange:
Once all parties are satisfied with the terms and conditions, you’ll sign official contracts to confirm the sale. This stage, known as “exchange of contracts,” legally binds both you and the seller to the agreement. It typically involves paying a deposit and arranging property insurance.
Stage 6 - Final Steps:
The final stage involves completing the remaining steps to officially become the owner of the property. This includes settling any outstanding payments and coordinating the transfer of keys. Once everything is in order, you’ll receive the keys to your new home, marking the successful completion of the home-buying process.
By following these stages, you can navigate the home-buying process with confidence and ensure a smoother transition into your new property.
Congratulations, you!
The lady who I spoke to was brilliant. She was lovely and pleasant whilst being professional and fully informative. She was not pushy at all. She certainly had the right attitude and was engaging. If everyone was like her it would be perfect.
Christine Notley
This was the easiest transaction I’ve had in a long time, the customer service was amazing and very helpful and nice to talk with, would highly recommend the company to friends family etc, fantastic customer service. 5 stars from me.
Zoe Mary Hall
Mr Gower was very professional and found the right cover for me. He was polite and engaged in conversation, explained everything easily.
Callum Dobson
Frequently Asked Questions
Mortgage deposit requirements vary. Typically, 10% is sufficient for traditional purchases, but larger deposits increase approval chances and lower payments. Some specialist purchases offer 100% borrowing without deposits.
A lifetime mortgage, empowers homeowners aged 55 and older to access funds from their home’s equity without monthly repayments. Repayment, including interest, occurs when the homeowner passes away or moves into long-term care, and the property is sold. It’s a financial tool designed to provide flexibility and support in your later years.
A variety of mortgage payment options are available, such as fixed-rate payments, Tracker rate payments, Discount Rate payments and Offset payments. To select the most suitable payment type for your requirements, a mortgage broker can provide you with insights and advice on the advantages and drawbacks of each option.
Loan-to-Value (LTV) is the ratio of a loan amount to the appraised value or purchase price of an asset, like a property. It helps lenders assess risk.
- Higher LTV ratios mean more risk for lenders, potentially leading to higher rates or mortgage insurance.
- Lower LTV ratios are viewed more favourably by lenders and can result in better terms.
A tracker mortgage has an interest rate linked to a financial index, like a central bank’s base rate. As the index changes, the mortgage rate adjusts accordingly. It offers transparency but means your payments can go up or down with market rates. It’s attractive when rates are expected to stay low but carries the risk of rate increases.
Improve your credit score, get on the electoral register, build your deposit, pay your bills, check your eligibility, start planning early.
Mortgage deposit requirements vary. Typically, 10% is sufficient for traditional purchases, but larger deposits increase approval chances and lower payments. Some specialist purchases offer 100% borrowing without deposits.
A lifetime mortgage, empowers homeowners aged 55 and older to access funds from their home’s equity without monthly repayments. Repayment, including interest, occurs when the homeowner passes away or moves into long-term care, and the property is sold. It’s a financial tool designed to provide flexibility and support in your later years.
A variety of mortgage payment options are available, such as fixed-rate payments, Tracker rate payments, Discount Rate payments and Offset payments. To select the most suitable payment type for your requirements, a mortgage broker can provide you with insights and advice on the advantages and drawbacks of each option.
Loan-to-Value (LTV) is the ratio of a loan amount to the appraised value or purchase price of an asset, like a property. It helps lenders assess risk.
- Higher LTV ratios mean more risk for lenders, potentially leading to higher rates or mortgage insurance.
- Lower LTV ratios are viewed more favourably by lenders and can result in better terms.
A tracker mortgage has an interest rate linked to a financial index, like a central bank’s base rate. As the index changes, the mortgage rate adjusts accordingly. It offers transparency but means your payments can go up or down with market rates. It’s attractive when rates are expected to stay low but carries the risk of rate increases.
Improve your credit score, get on the electoral register, build your deposit, pay your bills, check your eligibility, start planning early.
