10 steps to buying your first home
A property insiders guide for first-time buyers. Here are ten steps to buying your first home in Scotland...
A property insiders guide for first-time buyers. Here are ten steps to buying your first home in Scotland...
Steps to buying a house for the first-time:
- How much money do you need to buy a house?
- Register with your local agent
- Get your mortgage agreement in principle
- Instruct a property lawyer (conveyancer)
- Get the Home Report
- Make an offer
- Arrange a mortgage
- Decide on the date of entry
- Arrange buildings insurance
- Completion
- What other costs are associated with buying a property?
To help you find your way through the home buying process, we’ve created this step-by-step insider’s guide, including some of the essential information and costs you’ll need to know about how to get started.
So, without further ado, here we go.
Typically, you would need a minimum of a 5% deposit, although your ideal deposit would be at least 10%. So, if you’ve saved £10,000, then you could look for a house valued at up to £200,000 (subject to affordability checks). You also need to factor in a range of additional costs like stamp duty, solicitor fees, mortgage fees, survey costs and buildings insurance.
This may sound like a lot to keep in mind, but there’s no need to worry, as we’re here to help you throughout this entire process. And to provide you with a complete overview, we’ve included a list of costs that are associated with the buying process at the end of the article.
Now is the time to start looking for your new home. Ensure that you include all your requirements in your property search, and make use of our branch teams, who are there to make your buying process as simple and as smooth as possible – they have many years of experience to help you along the way. Plan plenty of property viewings. Do your research and get to know the local market. If you need a little extra advice on up-and-coming areas, talk to your agent.
A mortgage agreement in principle can also be referred to as a decision in principle and is an estimate of how much you could potentially borrow from a bank or building society. It will help you search for a property in your price range and may also help you negotiate a better price with the seller because they know you can get a mortgage. Bear in mind it’s not a formal mortgage offer and is subject to status and lender criteria.
Want to increase your chances of getting a mortgage? Here are our top tips:
And, if you want a helping hand finding the right type of mortgage for you, our associated company, Countrywide Mortgage Services, can help with that. They have access to thousands of mortgage deals from our panel of high street banks and specialist lenders and can help guide you through the mortgage market.
Visit our mortgages section to find out more, or arrange an appointment today for a no-obligation chat with a mortgage advisor.
Before being able to make an offer on a home, you’ll need a solicitor. A property lawyer, also known as a conveyancer, will take charge of conducting searches, liaising with the seller’s property lawyer, inspecting the seller’s documents and dealing with the Land Registry. This role is pivotal to keeping your house purchase on track.
If you’re still looking for a conveyancer, we offer conveyancing services that give you access to local experts, acting for you and independent, tailored for you… whoever you are buying from.
Every seller has to arrange a Home Report before selling their property. This includes a property questionnaire with information on the property, such as its history, Council Tax band and any changes made to it. The Home Report also includes the property’s Energy Performance Certificate (EPC) and a survey done by a qualified surveyor, which includes information about the property’s condition and property’s value.
The Home Report contains a lot of vital information about the property’s current condition, so it’s important to read it carefully before making an offer.
Once you’ve found what you’re looking for and had your mortgage agreed in principle, it’s time to make an offer. Think carefully about what you would be willing to pay, if you go too low, you risk not being seen as a serious buyer, so make sure your offer is realistic. Equally, don’t go in too high and miss the mark completely. Remember, your dedicated estate agent will be on hand to guide you through the process. You’ve found out your offer has been accepted? Fantastic! Relax, and take a deep breath. It’s about to get serious.
In Scotland, when there is more than one interested buyer, the seller’s agent will usually set a closing date by when all prospective buyers submit their offers via their lawyer. To improve your chance of having your offer accepted, including a written offer from your property lawyer, explaining your circumstances and commitment is good practice.
Once your offer is accepted, it’s time to arrange your mortgage. Remember that your mortgage agreement in principle (from step 3) usually expires after 30 or 90 days (depending on the lender - some expire earlier) so it’s worth checking what’s new to the market and seeing if you can find a better deal.
Our mortgage services offer you three types of service:
Visit our mortgages section to find out more, or arrange an appointment today for a no-obligation chat with a mortgage advisor.
Once your offer is accepted, you’ll receive a ‘qualified acceptance’ letter, after which the seller’s and your solicitor will negotiate the conditions, including the date of entry – these are called ‘missives’. From offer to settlement, this usually takes 8 to 12 weeks. Once both sides are happy with the agreement, your solicitors will set up a binding contract, called a ‘concluding missive’.
From buildings to contents insurance, you’ll want to ensure that your new home is protected. If you’re taking out a mortgage, you’ll most likely already have arranged your buildings insurance, as it’s usually a condition on of most mortgage offers. Like all types of insurance, buildings insurance protects you against unforeseen circumstances that could happen as soon as the missives are concluded (which is the time from when you’re legally bound to buy to property).
You may want to consider other insurance options available to you, that insure yourself, your family, your property and the contents within it. Explore your insurance options here.*
You did it. You’re officially a new homeowner – collect the keys from your estate agent and let yourself in! Now, time to bribe your friends with pizza and get them to work on the decorating.
Now that we’ve covered the steps to buying your home, let’s talk about some of the costs that are associated with buying a property. In this way, you can avoid any unwanted surprises along the way.
Land and Buildings Transaction Tax (LBTT), often referred to as Stamp Duty, is a form of tax that you pay when you buy land or property above a certain value. It is an additional cost that is calculated based on the purchase price.
Note that the LBTT in Scotland varies from Stamp Duty in England and the Land Transaction Tax in Wales. Read more about the Scottish LBTT and the different tax bands here.
Above, we already touched on the fact that your property lawyer/conveyancer will perform property searches on your behalf to help ensure that you, as a buyer, have all the information you need to feel secure in your property purchase. Depending on the council, the property and its environment, costs will vary, which is why it’s important to talk to a specialist to get a more accurate estimate.
There are usually two main types of mortgage-related fees - Broker fees and Lender fees.
Our Countrywide Mortgage Consultant will discuss any relevant fees with you before you choose to proceed. When arranging a mortgage through Countrywide, the following fees apply:
Although some lenders do offer fee-free mortgages, others may come with associated costs The total fees payable will depend on your chosen lender, but may include:
Last, but certainly not least, you can’t forget about any moving costs you may need to take into account, including hiring a company to help you move or the time it may take to do it all yourself. There are professionals who will be able to safely and securely pack and move your belongings. Depending on who you use, this could come with the added benefit of being insured for any potential damage that could occur during your move.
Correct at the time of publishing: 12.01.2024
ALL MORTGAGES ARE SUBJECT TO STATUS AND LENDER CRITERIA. MOST BUY TO LET MORTGAGES ARE NOT REGULATED.
A BROKER FEE MAY BE PAYABLE ON APPLICATION, OUR TYPICAL FEE IS £599. IN ADDITION, AN ADMINISTRATION FEE OF £99 MAY ALSO APPLY FOR RESIDENTIAL CUSTOMERS OR £149 FOR BUY TO LET CUSTOMERS.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.
Countrywide Mortgage Services is a trading names of Countrywide Principal Services Ltd which is authorised and regulated by the Financial Conduct Authority (Firm Registration Number 301684). Registered Office: Witan Gate House, 500–600 Witan Gate West, Milton Keynes, MK9 1GF. Registered in England no. 01707341. MS/CW/7154/01.24
*Cover for buildings insurance is underwritten by AXA Insurance UK plc, Registered in England No: 78950. Registered Office: 5 Old Broad Street, London,EC2N 1AD. AXA Insurance UK plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Financial Services register number 202312. This can be checked on the Financial Conduct Authority’s website at www.fca.org.uk/register.
