First mortgage

Want your own house or flat? TheSite.org brings you the ten basic steps for first-time homebuyers.

• Plan in advance how much you can afford to spend on buying a home. What kind of monthly repayments can you afford?
• See a Financial Planning Advisor and ask what kind of mortgage is best for you.
• Get a mortgage certificate, which shows in principle that an institution will lend you the money. This is useful when dealing with estate agents and vendors.
• Once you've found your ideal property, make an offer to buy it. This is usually done through the estate agent handling the sale.
• If you haven't already got a solicitor or licensed conveyancer, appoint one now to handle legal matters. You are not usually charged at this stage.
• If your offer is accepted the property is said to be 'sold subject to contract'. You may be asked to pay a small deposit as a gesture of good faith but at this stage the agreement is not legally binding. (In Scotland, if your offer is accepted the contract is binding and both you and the seller are committed to completing the deal.)
• Once your offer has been accepted, ask the mortgage lender to complete the mortgage application form. All you should need to do is add your signature.
• A 'valuation for mortgage purposes' will be conducted by your mortgage lender. You may also want to have a more detailed survey carried out for your own peace of mind if the property is old or run down.
• When your legal representative has completed all the necessary checks you'll be asked to sign a contract legally committing you to the purchase. At this stage you'll also pay a deposit and agree a completion date. You will typically have between two and four weeks before you can move in.
• Your legal representative will get the loan cheque from the mortgage lender in time to pay the seller. At this point you pay your legal representative for the work done and for such things as Stamp Duty and Land Registry Fee.

Stamp Duty is a Government tax on the purchase of any property over £125,000. Where the purchase price of your home is between £125,000-£250,000 the rate is currently 1%, 3% if the purchase price exceeds £250,000 and 4% if the purchase price exceeds £500,000.

The Land Registry Fee covers the cost of recording the change of property ownership at the Land Registry. These costs vary according to the price of the property.

Completion

At last the day arrives when you become the owner of your first home. Your legal representative will complete the purchase, you collect the keys - and move in.