A step by step guide to buying your home

By Mel Cindil - 23 November 2023

Purchasing a property can be a daunting experience, regardless of whether it's your first time or you're looking for your next move. The process can often be confusing, leaving you uncertain about the next steps. Fortunately, Flagstone Financial has created a straightforward step-by-step guide to help you navigate the process with ease.

Find out how much you can borrow and obtain a decision in principle.

To assist your mortgage broker, you will need to provide the following documents:

- Bank statements for all your bank accounts

- Proof of ID (a valid passport or UK driving licence)

- Proof of address (a recent utility bill or council tax bill)

- Proof of income:

- If you are employed, you will need to provide the last 3 months’ payslips and the latest P60 form (which summarises your yearly income and tax).

- If you are self-employed, you need to submit the last 2–3 years of SA302s (tax returns) from HMRC and accounts prepared by a certified accountant.

- Other income (bonuses, rental income, benefits), include proof of those too

- Details of any outstanding loans, credit cards, car finance, or student loans

- Evidence of your deposit (a bank statement showing available savings or gifted funds)

Most lenders require a minimum deposit of 5% to 10% of the property value (85% to 95% LTV). However, putting down 15% to 20% can help you avoid higher interest rates and fees.

This is the really fun part! Now that you know how much you can borrow, you can begin searching for properties that fit your price range.

Consider the following factors:

1. Location

Think about your commute, nearby schools, and available amenities.

2. Size and condition

Determine the size of the property you want and the condition you prefer. Keep in mind that new builds often come with warranties but may be more expensive. In contrast, older homes can offer unique character but might require renovations.

Once you have listed the properties you are interested in, arrange viewings with estate agents.

Submit your offer to the estate agent handling the property sale. Use comparable sales, market conditions, time listed, and necessary repairs to decide your offer level.

Now is a good time to appoint a solicitor.

Once the offer is accepted, submit your full mortgage application.

The lender will request all necessary documentation (if not already submitted for your Decision in Principle) and order a valuation survey to confirm the property's worth.

Once approved, you receive a formal mortgage offer (usually valid for 3–6 months).

With the help of your financial adviser, agree on a package to suit your needs and apply.

A property survey is separate from your lender's valuation. While it is not legally required, obtaining one is strongly advised.

Your financial adviser might recommend a chartered surveyor. If not, look for RICS Chartered Surveyors in your area.

There are various types of surveys, such as Level 1 Homebuyer Report, Level 2 and Level 3 (Building) Survey. The survey you choose will depend on the age and condition of the property you are purchasing.

A copy will be sent to your solicitor and broker.

Arrange to meet with your adviser to review and discuss protection requirements.

Once all checks, searches, mortgage and survey are complete and you're happy to proceed, your solicitor will ask you to:

- Sign the contract
- Pay your deposit (usually 5–10% of purchase price)
- Agree on a completion date with the seller
- Once the contracts are exchanged, the deal becomes legally binding.

On the agreed date:

- The rest of the funds (via your mortgage and deposit) are transferred to the seller’s solicitor
- The sale is registered with the Land Registry
- You can collect the keys, usually from the estate agent

Congratulations, you're now a homeowner!

Get in touch with Flagstone Financial.

We charge a fee to arrange your mortgage. The exact fee will depend on your individual circumstances, but it will be in the region of £299, payable upon application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.