We will not go into much detail on buying property in the UK for a few reasons. Firstly, if you’ve just arrived in the country, no lender will do business with you for several years until you’ve established a credit record. Secondly very few people arriving in the UK have sufficient money to put down as a deposit. Thirdly it takes most people quite a lot of time to come to terms with their new lifestyle and surroundings before deciding where to buy a property. If you are able to put down at least 25% of the value of the property in question, then you will find more lenders willing to deal with you. Using a mortgage broker is a good idea. An useful website to help you find a suitable mortgage is:
http://www.fast-mortgage.net
About 75% of people in England own their own home. This is because of easy access to mortgages and long term repayment schemes in a highly competitive lending market. It is often cheaper to buy a home than to rent in the UK. Repayment schemes run as long as 30 years. You will need to contact several mortgage lenders to see what kind of deal they can offer you. Only once you’ve found a lender to your liking can you then consider taking action.
The first practical step to buying a property is to decide on the where you want to live. Then you investigate the properties on sale in the area you’re interested in through the local estate agents. Hopefully you can afford the area, otherwise you will have to find another area. You register with an estate agent and they make a note of your requirements. They should be able to immediately provide a number of house’s details for you to look at. Once you have selected one or more properties of interest they will arrange with the property owner for a mutually convenient time for you to view the property.
Once you have identified a property you wish to buy, you instruct the estate agent to convey your desire to buy. Remember to stipulate that your offer is subject to survey and contract. Under British law, until contracts are exchanged, either party can amend or withdraw from the sale. It normally takes 6 weeks from submitting the offer until the contracts are exchanged. The time from ‘exchange of contract’ to possession of the property can vary as it depends on either party’s wishes. This plays out up and down the line of property owners and is called a daisy chain.
When buying a property you will need a solicitor or conveyor to do the legal work, which includes the title search and deed registration. It is also advisable to hire a surveyor to check out the property structurally for you. If you are taking out a loan, most lending institutions will ask for a surveyor’s report.
Be warned though, that in England during boom periods, “gazumping” is a common occurrence. “Gazumping” is the practice of a seller agreeing to an offer from a buyer, but then accepts a higher offer from another buyer later. Gazumping does not happen in Scotland as once each party has agreed to the sale, neither party can withdraw. It is imperative therefore that you have a survey done before making an offer on a house in Scotland.