Buying a house is one of the largest financial decisions most people make, yet the process itself is rarely explained clearly. There are solicitors, surveys, searches, mortgage offers, and exchange dates to navigate, often with little indication of what happens next or why it matters. This guide walks through each stage in order, from sorting your finances to picking up the keys, so you know what to expect and where to focus your attention.
Work Out What You Can Afford
Before you look at a single property, get a clear picture of your finances. Two numbers matter most: how much you can borrow, and how much you can put down as a deposit.
Most lenders in the UK will offer between four and four-and-a-half times your annual income, though this varies with your outgoings, credit history, and the lender’s own criteria. MoneyHelper has a mortgage affordability calculator that gives a useful starting point.
Your deposit determines which mortgage products you can access. A 5% deposit is the minimum for most residential mortgages, but rates improve meaningfully at 10% and again at 25%. The larger your deposit, the lower your loan-to-value ratio, and the better the deals available to you.
Don’t forget the costs beyond the purchase price:
- Stamp Duty Land Tax (SDLT): Charged on residential property purchases in England. First-time buyers pay no SDLT on the first £300,000 of a property priced up to £500,000. For all other buyers, the nil-rate threshold is £125,000, with rates rising in bands above that. Check the current Stamp Duty Land Tax rates on gov.uk before budgeting, as thresholds changed in April 2025 (gov.uk, 2025).
- Solicitor/conveyancer fees: Typically £1,000–£2,500 depending on complexity and property value.
- Survey costs: Between £300 and £1,500 or more depending on the level of survey you choose.
- Mortgage arrangement fees: Some products carry fees of £500–£2,000, which can be added to the loan or paid upfront.
- Removal costs and initial home expenses: Often underestimated.
A realistic budget accounts for all of these, not just the deposit.
Get a Mortgage in Principle
A mortgage in principle, sometimes called an agreement in principle or decision in principle, is a conditional statement from a lender confirming how much they would be willing to lend you, subject to full application and valuation. It doesn’t bind you to that lender, and it doesn’t guarantee a formal offer, but it does two useful things: it tells you where your budget ceiling sits, and it signals to sellers and agents that you’re a credible buyer.
Most lenders carry out a soft credit check at this stage, which doesn’t affect your credit score. You’ll need to provide details of your income, outgoings, and any existing debts.
Getting a mortgage in principle before you start viewing is worth doing. In a competitive market, sellers are less likely to accept an offer from a buyer who hasn’t demonstrated they can fund the purchase.
Find a Property
With a clear budget and a mortgage in principle in hand, you’re ready to search. Think carefully about your priorities before you start viewing: property type, number of bedrooms, outdoor space, parking, and commute time all matter, but so does understanding which of those you’d compromise on.
In Birmingham, buyers have access to a wide range of property types, from Victorian terraces and Edwardian semis in areas like Moseley, Harborne, and Erdington to modern apartments in the city centre and new-build developments across the wider metropolitan area. Knowing which part of the city suits your lifestyle and budget will save you a lot of time.
When viewing, look beyond the cosmetic. Check the condition of the roof, windows, and boiler. Ask how long the property has been on the market and whether there have been any previous sales that fell through. These questions cost nothing and can tell you a great deal.
Make an Offer
When you find the right property, make an offer through the estate agent. In England and Wales, offers are not legally binding at this stage, so either party can withdraw without penalty until contracts are exchanged.
Your offer should reflect the market, the condition of the property, and how motivated you are to secure it. The agent will put your offer to the seller and come back with an acceptance, rejection, or counter-offer. If your offer is accepted, ask for the property to be taken off the market while you proceed.
Instruct a Solicitor or Conveyancer
Conveyancing is the legal process of transferring ownership from seller to buyer. You’ll need to instruct a solicitor or licensed conveyancer as soon as your offer is accepted. Don’t leave this until later in the process as it adds unnecessary delay.
Your conveyancer will:
- Carry out property searches (local authority, water and drainage, environmental, and others).
- Review the title deeds and raise enquiries with the seller’s solicitor.
- Check the terms of any lease if the property is leasehold.
- Report to you on anything material they find.
- Manage the exchange of contracts and completion.
Searches typically take two to six weeks depending on the local authority, so instructing your solicitor promptly matters.
Arrange Your Mortgage
Once your offer is accepted, contact your mortgage broker or lender to proceed with a full mortgage application. The lender will carry out their own valuation of the property to confirm it’s worth what you’ve agreed to pay.
At this stage, you’ll need to provide documentation including:
- Proof of identity and address
- Three to six months of bank statements
- Payslips or, if self-employed, two to three years of tax returns or SA302s
- Details of any existing debts or financial commitments
The lender will issue a formal mortgage offer once they’re satisfied. This offer is typically valid for three to six months.
Commission a Survey
The lender’s valuation is not a survey. It tells the lender the property is worth the purchase price; it doesn’t tell you what condition the property is in. Commissioning your own survey is strongly advisable.
There are three main survey types in the UK:
- RICS Condition Report: The most basic level, flagging only significant defects. Suited to newer properties in good condition.
- RICS HomeBuyer Report: The most commonly used survey. Covers the condition of the structure and highlights material concerns, with a market valuation included.
- Building Survey (formerly Full Structural Survey): The most thorough option. Recommended for older properties, unusual construction types, or any property you plan to significantly alter.
RICS sets the standards for all three and its website explains what each covers in detail.
A survey finding doesn’t have to end the purchase. If significant issues are identified, you can renegotiate the price, ask the seller to carry out repairs, or in serious cases withdraw your offer.
Exchange Contracts
Exchange is the point at which the transaction becomes legally binding. Both buyer and seller sign identical contracts, which are then physically or electronically exchanged between solicitors. At this point, you pay your deposit, typically 10% of the purchase price, to your solicitor, who holds it until completion.
A completion date is agreed at exchange. This can be the same day in straightforward cases, but is more typically one to four weeks later to allow time for removals and practical arrangements.
Once contracts are exchanged, withdrawing from the purchase means losing your deposit. The same applies to the seller: pulling out after exchange leaves them liable to you.
Complete and Get the Keys
Completion is the final step. Your solicitor transfers the remaining purchase funds to the seller’s solicitor. Once confirmed, the keys are released, usually through the estate agent, and the property is yours.
Your solicitor will then register the change of ownership with HM Land Registry and pay any Stamp Duty owed on your behalf.
The average time from offer accepted to completion in England and Wales is around 12 weeks, though this varies considerably depending on chain length, search times, and how quickly all parties respond to enquiries (Homeowners Alliance, 2025).
If you’re looking to buy Preferential Properties can help you find the right property and guide you through the process from the start. Register as a buyer to tell us what you’re looking for, or contact the team directly to talk through your search.
