--- title: What is the process of buying a home in the UK? description: The process of buying a house in the UK can be difficult but we have outlined the key steps to get you on the property ladder. image: https://blog.fivestarmortgages.co.uk/hubfs/super-straho-wDTIGTomUlw-unsplash.jpeg --- Open main menu Close main menu # What is the process of buying a home in the UK? ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=45&name=176-marta-manuszewska_xl.jpg) [Marta Manuszewska](https://blog.fivestarmortgages.co.uk/author/marta-manuszewska) [Share this blog post on Twitter](https://twitter.com/intent/tweet?text=I+found+this+interesting+blog+post&url=https://blog.fivestarmortgages.co.uk/uk-home-buying-process) [Share this blog post on Facebook](http://www.facebook.com/share.php?u=https://blog.fivestarmortgages.co.uk/uk-home-buying-process) [Share this blog post on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fivestarmortgages.co.uk/uk-home-buying-process) ![Homes in the UK](https://blog.fivestarmortgages.co.uk/hubfs/super-straho-wDTIGTomUlw-unsplash.jpeg) ## 1. Determining your affordability The amount of a mortgage that you can obtain depends on your income, family situation and the term of a mortgage. The longer the mortgage term the more affordable the loan will be so, therefore, the more you might be able to borrow. Important! Any current and unpaid credit commitments, such as loans, credit cards, car finance, will reduce your affordability. ## 2. Preparation of an initial decision – Decision in Principle (DIP) or Agreement in Principle (AIP) In order to reserve a chosen property, most estate agents require preliminary consent of a lender which is obtained after initial verification of income and performing a credit check. Five Star Mortgages Ltd does not charge any fees for obtaining a decision in principle. Important! When the property is reserved, an estate agent may also ask for the following documents: - ID, (Driving license or passport). - Confirmation of a deposit, e.g. statement of an account on which savings are kept (proof of deposit). - Details of the solicitors who will handle your purchase. If you do not have a solicitor providing legal service for your purchase (conveyancing), Five Star Mortgages Ltd can recommend one of our trusted law firms which we deal with on a regular basis. A good conveyancer will increase the chances of the transaction being carried out effectively and smoothly. After your offer is accepted by the seller, you will receive a letter from the estate agent confirming the reservation, this is known as a “memorandum of sale”. ## 3. Completing a mortgage application Having undertaken suitable research and fully analysed your personal situation, we will complete and submit a mortgage application to the lender that is the most suitable for you. Important! Upon completing an application, you need to decide on the type of valuation you require. There are the following types of valuation: - Basic Valuation – Purely for the benefit of the lender and only confirms to you that you're buying the property for a fair price. - Homebuyer report – Provides you with a report on the condition of the property. - Building survey – Provides a detailed report on the structure of the property. ## 4. Obtaining a formal mortgage offer Important! A mortgage offer is usually valid for up to 6 months. If the purchase has not been completed during this time, it would be at the lender’s discretion whether they will renew the offer or not. ## 5. Building insurance **Remember that your home must be insured because it is being used as security against the mortgage.** Five Star Mortgages Ltd offers a wide range of home insurance (building insurance and insurance of furnishings and fittings – contents insurance). Home insurance may also cover accidental damage and personal belongings, even if they are destroyed or stolen outside the home. Important! When buying a house it is worth considering additional insurance options: life insurance, critical illness cover or income protection. Five Star Mortgages Ltd offers access to insurance companies from the whole of the market which allows us to recommend insurance policies tailored to your individual needs. ## 6. Exchange of contracts A turning point in a transaction. Before you agree to an exchange of contracts, carefully read all documents provided to you by your solicitors and the seller. **Important!** After the exchange of contracts, and payment of a deposit, you are legally obliged to purchase the property. **Important!** Building insurance, you become responsible for insuring the property from point of exchange of contracts. ## 7. Completion After a transfer of the final payment by your solicitor, you become the legal owner of the property. **Important!** The keys to the house are collected from an estate agent, but only after a call from solicitors confirming completion of the purchase. **Important!** On the date of completion of the purchase, you begin repayment of your mortgage. ## 8. Congratulations! Your dream home is yours! Remember to change your address! To avoid problems with undelivered mail, remember to set up [**mail redirection**](https://www.royalmail.com/personal/receiving-mail/redirection). It will help you avoid problems with prompt repayment of bills which could affect your credit history in the future. ### Get in touch today for a FREE consultation Book an appointment through our form or call today on [0300 303 4676](tel:03003034676) to speak with one of our experienced financial advisors.   --- YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=150&name=176-marta-manuszewska_xl.jpg) #### Marta Manuszewska [Follow me on my website](https://www.positiveadvisers.co.uk/) [Follow me on Facebook](https://www.facebook.com/positiveadvisers) [Follow me on LinkedIn](https://www.linkedin.com/in/marta-manuszewska-dipfa-cemap-6a199670/) Marta lunched Five Star Mortgage is 2016 having worked the previous 3 years providing mortgage advice along side a Law firm and the previous 7 years in residential lettings. This grounding in property has seen her grow a huge following in this area. Over the years Marta has seen her clients grow financially and need more and more complex advice. She set a goal and achieved this in 2019, that goal to qualify to provide Independent Financial Advice. At this point Marta became a Director / Owner of Positive Advisers Ltd and is now passionate in helping many of her mortgage and new clients with more complex financial planning advice. Marta lives in Oundle with Mark her partner and co-owner and son. Her favourite TV program is “Suits”. She enjoys theatre, concerts, dining out and spending time with family and friends. ### Leave a Comment ## Related Articles [![Modern home purchased through FiveStar Mortgages and the government help to buy scheme](https://blog.fivestarmortgages.co.uk/hubfs/unsplash-image-L7EwHkq1B2s.jpeg)](https://blog.fivestarmortgages.co.uk/what-is-help-to-buy) ### [What Is Help to Buy and How Does it Work?](https://blog.fivestarmortgages.co.uk/what-is-help-to-buy) #### Lots of you have asked, is it worth buying using the Help to Buy scheme? Unfortunately, there isn’t one, universal answer to this question. Everything depends on... ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=45&name=176-marta-manuszewska_xl.jpg) [Marta Manuszewska](https://blog.fivestarmortgages.co.uk/author/marta-manuszewska) [Read More](https://blog.fivestarmortgages.co.uk/what-is-help-to-buy) [![A woman looking into how she can pay off a Help to Buy loan](https://blog.fivestarmortgages.co.uk/hubfs/pexels-ivan-samkov-4458554.jpg)](https://blog.fivestarmortgages.co.uk/pay-off-help-to-buy-loan) ### [How do I pay off a Help to Buy loan?](https://blog.fivestarmortgages.co.uk/pay-off-help-to-buy-loan) ### Part I - Repaying Without Selling In this part, we will discuss the most popular method of repaying the Help to Buy loan – redemption without selling property.  ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=45&name=176-marta-manuszewska_xl.jpg) [Marta Manuszewska](https://blog.fivestarmortgages.co.uk/author/marta-manuszewska) [Read More](https://blog.fivestarmortgages.co.uk/pay-off-help-to-buy-loan) #### Five Star Mortgage Services - [Residential Mortgage](http://www.fivestarmortgages.co.uk/en/residential-mortgage) - [Commercial Mortgage](http://www.fivestarmortgages.co.uk/en/commercial-mortgage) - [Our Insurance](http://www.fivestarmortgages.co.uk/en/our-insurance) - [Employee Benefits](http://www.fivestarmortgages.co.uk/en/employee-benefits) - [Will Writing Services](http://www.fivestarmortgages.co.uk/en/will-writing-services) #### Postive Advisers Financial Services - [For Business](https://www.positiveadvisers.co.uk/business) - [For Individuals](https://www.positiveadvisers.co.uk/individuals) - [Development Finance](https://www.positiveadvisers.co.uk/development-finance) - [High Net Worth Mortgages](https://www.positiveadvisers.co.uk/high-net-worth-mortgages) - [Assets of £550k to 2 Mill](https://www.positiveadvisers.co.uk/assets-of-500k-to-2-million) [![Contact Positive Advisers for Financial planning advice.](https://no-cache.hubspot.com/cta/default/20233606/8217c43c-f2e1-4c4e-90d4-36a8b69c0b83.png)](https://cta-redirect.hubspot.com/cta/redirect/20233606/8217c43c-f2e1-4c4e-90d4-36a8b69c0b83) --- [![Contact Five Star Mortgages](https://no-cache.hubspot.com/cta/default/20233606/2bfa28a1-5449-4b20-8b30-59236d926188.png)](https://cta-redirect.hubspot.com/cta/redirect/20233606/2bfa28a1-5449-4b20-8b30-59236d926188)