Buying a home
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1. Overview
Buying a home takes about 5 months on average. The process can take longer if you’re part of a chain of buyers and sellers.
If you’re also selling a home, read the guide to selling your home.
This guide is for England and Wales. There are different rules for buying a home in Scotland and buying a home in Northern Ireland.
To buy a home, you’ll need to:
- decide how much you need to borrow - you may be able to get financial help from the government through an affordable home ownership scheme
- choose a mortgage lender
- choose a property
- make an offer on a property
- exchange contracts - if the seller accepts your offer, they’re responsible for drawing up a legal contract to transfer ownership
- pay tax
- arrange and pay for searches and surveys
- arrange for a removals company to help you move home
An offer is not legally binding until contracts are exchanged.
You may be able to get financial help from the government through an affordable home ownership scheme.
If you’re buying property with someone else
You can own a home with up to 3 other people. Find out more about the different types of joint property ownership.
Protecting yourself from fraud
There’s a risk of fraud when buying a home as this involves transferring large sums of money. It’s important to check that you:
- are speaking to or emailing the person or business you think it is
- transfer money to the correct bank account/s
- do not reveal too much personal information on social media
You can also speak to a legal professional for help and advice about property fraud.
2. Preparing to buy
When you decide you want to buy a home, you may need to get a mortgage to buy it. If so, you need to work out how much you can afford to borrow.
When deciding how much to lend you, a mortgage lender will consider:
- the total amount you can borrow
- whether a deposit is needed
- how affordable your monthly mortgage payments will be
How your mortgage affordability will be worked out
The mortgage affordability assessment will take into account:
- your income
- your current outgoings, for example, utility bills, insurance and Council Tax
It will also consider any changes that might affect whether you would be able to afford repayments (for example if interest rates change, or if you were made redundant).
Work out how much you can afford for a mortgage on the MoneyHelper website.
Additional costs
Other costs you may need to consider when buying a home include:
- taxes, like Stamp Duty Land Tax (SDLT), also called stamp duty
- surveys - read about the different types of surveys you can have on a new home
- solicitor’s fees
- mortgage fees
- search fees
- land registration fees
Property running costs
There will be extra costs to run your home when you buy it. For example:
- Council Tax
- cost of heating the property
- other bills such as water and broadband
If you’re buying a leasehold property
You may also have to pay:
- services charges (this usually covers building insurance)
- ground rent
Find out leasehold service charges and expenses.
Credit score
Your credit score can affect whether you can get a mortgage and the kinds of deals you’ll be offered. The higher the number in your score, the more likely you are to be offered a mortgage.
Find more information about how to check or improve your credit score on the MoneyHelper website.
Identity checks
You’ll need to prove your identity to your:
- estate agent
- solicitor
- mortgage lender
Find more information about documents you need to have to prove your identity on the MoneyHelper website.
3. Deciding on a home
There are different ways to own a property.
Leasehold and freehold properties
If you’re buying a home, you can choose between:
- a leasehold property
- a freehold property
If you buy a freehold property, you own the house and the land it’s built on. There are no leases and you do not have to pay ground rent or any maintenance fees. You’re responsible for maintaining your property and land, so you’ll need to budget for these costs.
Read more about leasehold and freehold properties on the MoneyHelper website.
Energy Performance Certificate
If you’re thinking of buying a property, the seller must have a valid Energy Performance Certificate (EPC). This tells you the energy efficiency rating of a property.
4. Making an offer
Before you make an offer, check:
- what the property is worth
- the number of years on the lease (if relevant)
- what’s included in the sale
- what will be fixed or inspected before completion (boiler service for example)
Make an offer on a property
Once you’ve decided on a property, you can make an offer, usually through an estate agent.
An offer is not legally binding in England and Wales until you exchange contracts.
If you make an offer ‘subject to contract’, this means the price can still be negotiated (for example, if a survey finds a problem with the property).
Get a legal professional
You’ll need to find a legal professional to handle the legal work involved in buying a home.
This could be a:
- solicitor
- licensed conveyancer
- chartered legal executive
- Chartered Institute of Legal Executives (CILEX) practitioner
Read more about how to buy and sell a home through estate agents on the MoneyHelper website.
Searches and valuation
Once your offer has been accepted, your solicitor or conveyancer will organise local authority searches on the property.
This usually includes a:
- local authority search
- water and drainage search
- environmental search
You usually have to pay for the searches up front.
Your mortgage provider will carry out a valuation of the property before they approve your mortgage.
Surveys
You can get a homebuyer survey to check the condition of the property. Read more about the different types of surveys you can get on the MoneyHelper website.
Recommendations from estate agents or mortgage lenders
Some estate agents and mortgage lenders might recommend legal professionals, mortgage brokers or surveyors to you.
You must be told if the estate agent or mortgage lender gets a payment (a ‘referral fee’) from the company they’re recommending.
You do not have to use the company that’s been recommended to you.
5. Transferring ownership (conveyancing)
Once the offer is accepted, the seller is responsible for drawing up a legal contract to transfer ownership.
The contract contains details about:
- the sale price
- the property boundaries
- which fixtures and fittings (like carpets and kitchen units) are included
- any legal restrictions or rights, like public footpaths or rules about using the property
- any planning restrictions
- services to the property, like drainage and gas
- when the sale will complete
If the seller has hired a solicitor or conveyancer, they will:
- draft the initial contract
- answer questions from your solicitor or conveyancer (with the seller’s help)
- negotiate the details of the contract if necessary
Exchanging contracts
When you (the buyer) and seller are happy with the contract, both sides sign final copies and send them to each other.
The agreement to sell and buy is legally binding once this happens. Usually neither of you can pull out without paying compensation.
Completion
Once you exchange contracts and the seller deals with any remaining checks you’ve asked for:
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Your solicitor or conveyancer will transfer your money to the seller.
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You’ll be sent the legal documents needed to transfer ownership.
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The seller moves out and leaves the property in the state agreed in the contract.
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You get the keys to the property from the seller or estate agent.
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You now own the property.
6. Tax
You may need to pay:
- Stamp Duty Land Tax (SDLT) when you buy a home in England and Northern Ireland
- Land Transaction Tax when you buy a home in Wales
Stamp Duty Land Tax
You pay SDLT if the property is worth £250,000 or more.
If you’re buying your first home, you do not have to pay SDLT if the property is £425,000 or less.
7. Making a complaint
You can make a complaint to a company involved in the sale if you’re unhappy with their service. Follow the company’s complaints procedure.
If they do not respond or you’re not happy with their response, you can complain to the relevant ombudsman service or scheme.
That ombudsman will investigate the complaint for free.
Complain about an estate agent
You can complain to one of the following:
Ask the estate agent which scheme they belong to.
The Which? website has more advice on how to make a complaint about an estate agent.
Complain about a legal professional
Contact the Legal Ombudsman.
Citizens Advice has more advice on how to make a complaint about a solicitor or conveyancer.
Complain about a mortgage lender
Contact the Financial Ombudsman Service.
Complain about a valuer or surveyor
Contact the Royal Institution of Chartered Surveyors if the valuer or surveyor is a member.
Citizens Advice has advice on how to complain about a surveyor.
Complain about a new home
Contact the New Homes Ombudsman Service