What is Involved in a Purchase

Step 1

Before purchasing a new home you will need to establish the maximum purchase price for the type of property you wish to buy.

Most lenders will allow you to borrow up to 3.5 times your annual income or 2.75 times joint income, although it is possible to borrow more depending on your own personal circumstances.

One of our qualified advisers can give you guidance in this area, assessing the affordability of an advance and recommending a suitable lender to meet your requirements.

Step 2

Calculate how much deposit you can put towards the purchase.

Whilst a deposit is not always required it may be possible to get a lower rate with one and there is often a greater choice of lenders from which to find a mortgage.

Step 3

Now that you know how much you can afford to borrow you can begin to look for a suitable property.

Our advisers can give guidance on the costs involved in purchasing the property which will include Stamp Duty, Legal Fees, Arrangement and Valuation Fees.

Step 4

Find the mortgage that suits your needs.

We will assist you by asking pertinent questions about your circumstances and your preferences and priorities in relation to the types of mortgage.

Once this has been done we will submit a Decision In Principal to the lender who can confirm whether or not your application will be accepted, given certain criteria, and will confirm the terms and rates that will apply.

Step 5

Make an Offer on the property you wish to buy and agree a mutually acceptable purchase price.

Once agreed the Estate Agent will usually require certain information. This will include solicitors details and the name of Lender that has provisionally agreed the mortgage facility with you.

Step 6

At this stage you need to instruct your solicitor to act on your behalf and they will normally require upfront fees for legal searches, with the balance being paid on completion.

Step 7

Complete a full application for the lender confirming the amount of funds and the product required.

The lender will carry out a credit search on all applicants and also instruct a valuer to assess the value and suitability of the property.

Once the searches have been satisfactorily carried out the application is passed to the lenders underwriters.. So long as the loan meets their criteria and they are satisfied with the references they will release a formal offer of mortgage.

The mortgage offer explains the terms and conditions on which the lender is prepared to loan the money. You should read this carefully and contact your adviser if there is anything you do not understand or need clarifying.

Step 8

You will exchange contracts at which point in England and Wales you will be legally obliged to purchase the property.

Completion typically takes place 14 days following exchange of contracts.

Solicitors not regulated by the Financial Services Authority.