The process of buying a house in every country is slightly different.

We’ve put together a guide to help all those people who are considering buying a house in the United Kingdom.

The Deposit

Unless you are a cash buyer you are going to need to secure a mortgage from a UK bank. Lenders typically require a deposit of a minimum of ten per cent of the purchase price of the home. Gone are the days where lenders will approve a loan for 100% of the total cost of the home.

Most lenders must know your annual income before approving a loan amount. Proof of income, as well as, documentation of current debt is required to determine what will be going out of the account. Provide as much detail about your financial situation as possible in order for clients to make a fair assessment about how much mortgage you are able to afford. When purchasing a home, you should also budget for one-off costs, such as Solicitor Fees, Stamp Duty and administrative fees.

Surveyor’s Fees

Lender’s will require as a minimum the basic valuation survey before a property is purchased. A charge is normally associated with this survey that is the responsibility of borrower. For a valuation survey you will typically pay around £300 to £400. Detailed surveys are often requested to examine the property’s condition if you are buying property of a hundred years or older.

Stamp Duty

In the UK property buyers purchasing a property in excess of £175,000 or more will be required to pay a Stamp Duty Land Tax. This cost is usually between one and four per cent of the total property value. Buyers that purchase in an area with only new construction may receive an exemption from the builder.

You can use the Stamp Duty Calculator through the HM Revenue and Customs website to calculate how must stamp duty you will have to pay.

Solicitor’s Fees

Solicitor’s fees typically cover searches and legal paperwork. The fees may vary based upon the property value or the area where the survey is conducted. The amount may include the following:

* Legal fees
* Local Authority Searches
* Land Registry Fees
* Drainage and Environmental Searches
* Administration Costs
* Other Fees

Costs for this will vary slightly but you should not need to pay more than £1,500

Lender’s Arrangement Fees

Lender’s arrangement fees vary depending upon the provider. The fees may include:

* Booking Fees
* Arrangement or Completion Fees

Mortgage Repayments and Exchange Rates

Monthly mortgage repayments must be included in your monthly budget. These budgets cannot exclude any future changes in interest rates should they occur. If you are an overseas buyer you much take into account changes in the exchange rate as this variable can lead to you repayment going up as well as down.

Building and Contents Insurance

Once the contract is signed or exchanged, you, the owner, are responsible for insuring the property. Most lenders will insist on building’s insurance. However, in some instances, building’s insurance may be required.

Final Word

We hope you find this a helpful guide to buying a property in the UK and if you are have bought a property in the UK we’d love to hear about your experiences.

Bio

Andrew Potter who works for My Online Estate Agent wrote this guest article. My Online Estate Agent is the UK’s fastest growing low cost estate agent and advertises all its properties on Zoopla, Rightmove, Find a Property and Primelocation as well as providing helpful guides and online tools.