Being able to buy your first home is exciting, as it means you can become the proud owner of your own property. Our first-time buyer’s guide covers the various steps involved along the way.

Where to start your property search

The first step is to plan the actual property search. You may already have a good idea of where you want to live, but if not, consider some of the following:

• Visit your preferred neighbourhood to get a tangible idea of what it could be like to live there.
• Check local amenities like shopping facilities, nightlife, transport links, doctors, dentists, and schools.
• Look at crime mapping websites to see how much burglary and anti-social behaviour is recorded.
• Is it an up-and-coming area? Are new developments underway, and is regeneration taking place?

Costs to consider when buying a property in North London

There are several costs to weigh up before you buy a property, including:

Stamp duty for first-time buyers

Stamp duty is one of the larger costs that need to be considered, however for first-time buyers, this is not the case thanks to the stamp duty land tax relief. If you are a first-time buyer, stamp duty is not due on the first £300,000 of the property’s value.  If you are purchasing a property for more than £300,000, you will not be entitled to any relief and will be required to pay SDLT at normal rates. We suggest using a stamp duty calculator to determine how much you’ll pay.

Property deposit

Perhaps the biggest hurdle to overcome is putting together a large enough deposit. In most cases, you will need a 10% deposit to buy a home, although 95% mortgages (that require a 5% deposit) are becoming more common. Whether it’s 5% or 10%, this figure is based on the sale price of the property you want to buy.

Applying for a mortgage

The next step is to apply for a mortgage, which can be done directly through a lender or broker. A lender will show you their own deals, and a broker will shop around to find the best deals on the market – some of which are not publicly available without their help.

It’s a good idea to check your credit score before applying, as you will undergo a full credit check to assess whether you are financially secure enough to afford a mortgage.

Government schemes for first-time buyers

The Government has a few first-time buyer schemes that could make it easier to secure a property – although you need to make sure you are eligible before applying. These schemes include:

Shared ownership

You buy between 25% and 75% of the property from the council or housing association and pay off the remaining amount over a fixed period.

Help to Buy: Mortgage guarantee scheme

Available on properties worth up to £600,000, you apply for a 95% loan-to-value mortgage with a lender that offers the scheme.

First Homes

If you earn less than £80,000 a year (£90,000 in London), you can get a mortgage discount of up to 50% on a new build home.

Choosing the right property

When choosing a property in Holloway, you’ll need to balance your budget with practical requirements. You’ll already know what you can afford, so start searching within that price range in the areas you’d like to live in.

Based on your current circumstances or plans for the near future, consider some of the features you want the property to have. For example, do you need a garden or garage? How many bedrooms will you need, and what storage space will suit you best?  Also, consider the location to nearby transport links and other important amenities such as supermarkets and schools.

Viewing and making an offer

It can take time to find your dream home, so be persistent and don’t rush into committing unless you are 100% happy.

Make a list of questions you’d like to ask buyers and a checklist of things to inspect when you walk around. When you put in an offer, if you can pay in cash or produce a ‘mortgage in principle’ from a lender, you stand a better chance of it being accepted (providing the offer is fair) as it demonstrates that you are more likely to follow through and complete the purchase.

Hire a conveyancing solicitor

You’ll need to hire a conveyancer or property solicitor to take the process further, as they will draw up the draft contract and oversee the surveys and other legal requirements. They’ll work on your behalf to negotiate where needed and check there are no hidden surprises in the contract, while the seller will also have their own conveyancer working for them.

Surveys

Searches and surveys are a requirement if you are buying a property with a mortgage. It is a good idea to carry out your own survey to get a better understanding of the current condition of the property. There are a few different types of searches to choose from, each varying in price and detail:

• RICS Home Survey – Level 1
• RICS Home Survey – Level 2
• RPSA Home Condition Survey
• RICS Home Survey – Level 3
• RPSA Building Survey

Exchange of Contracts

The exchange of contracts happens via the conveyancers, and at this point, you are legally bound to proceed with the transaction. If you pull out at this stage, you could lose your entire deposit.

You’ll then be asked to put down an initial deposit, usually around 10% of the property value, which is then sent to the seller via your conveyancer. A completion date is agreed, and this usually takes place between 7 to 28 days later.

Completion

When the completion date arrives, the remaining funds are sent to the seller and the property deeds are transferred to your name. This is the day when you become the legal owner of the property and can collect the keys to move in. Once everything is completed, the property is now yours, and you can transport your possessions and settle in.