So you’ve decided to buy a house for the first time, or maybe you already own a house and want to move up the property ladder. You might be looking to move area or maybe you want to become a landlord and enter the buy-to-let market.
If so, it’s worth understanding what actually drives buy-to-let lending decisions and why outcomes can vary between lenders before you commit.
Whatever your situation, our comprehensive guide to how to buy a house will help you move step by step through the process.
Step 1: Decide if buying is the right decision for you
Buying houses is very popular in the UK, especially because house prices have largely seen an upward trend in the last few years. Yet, is it the right decision for you? Careful consideration must be paid to whether you can afford the property in the long term. Financial security is key and if you don’t think you will be in a stable position to afford your property going forward, then some further thought might be required.
If however, you have done your research, your sums and you know it is the right decision for you, then read on to find out what you you should do next in the house buying process.
Step 2: Decide if you should sell first
If you already own a home, you will need to decide whether you want to sell your property before you buy a new house. Most people sell their property at the same time as buying a house which creates a property chain. However, selling your property before you find a new property to buy does have its advantages as follows:
You will be in a good position to purchase your new house because you won’t be tied to a house chain. A buyer with cash in the bank (or a pre-approved mortgage) is usually the preferred buyer over someone who needs to sell a property before they can purchase.
There is less risk of being gazumped. As long as your offer is decent, the buyer is unlikely to take another offer if you are buying a house without a chain attached.
You will know exactly how much you can spend and buying your new home won’t be dependent on you achieving the expected price on your existing one.
If prices are falling, then houses will become cheaper for you, having sold your previous property at the higher rate.
The disadvantages of selling before you buy a house are as follows:
If you have already sold your property and struggle to find the right property to buy, you might have to rent in the meantime.
If prices are rising fast, by the time you’ve sold your house and sorted out somewhere to rent, a new house will be much less affordable. For example, if you rent for a year, and prices rise by 10% in that year, then you will only be able to afford 10% less
Alternative: Keeping your current property (Let-to-Buy)
Instead of selling, some borrowers choose to keep their existing property and rent it out.
This is known as a let-to-buy arrangement. It involves:
- remortgaging your current home onto a buy-to-let basis
- releasing equity to use as a deposit
- taking a new residential mortgage for your next home
This can work well in the right circumstances, but it is assessed as a combined case and can be more complex than a standard move.
You can read our full let-to-buy guide or use our let-to-buy calculator to see whether this could work in your situation.
Step 3: Work out what you can afford and the associated costs involved with buying a house
Before you start viewing properties, you need a clear idea of what you can realistically spend — not just what you’d like to spend.
Most people start with a rough number based on income or online calculators. The issue is that lenders don’t all assess affordability the same way.
What you can borrow will depend on:
- How your income is structured (salary, bonus, self-employed, etc.)
- Your existing commitments and outgoings
- The size of your deposit
- The type of property you’re buying
- How a lender chooses to interpret your situation
Two people with similar incomes can get very different results depending on how their case is assessed.
At this stage, you’re not trying to find the exact mortgage deal yet. You’re trying to understand:
- roughly how much you could borrow
- what price range you should be searching in
- whether anything in your situation might limit your options
Getting this right early on helps avoid situations where you find a property, only to discover later that it doesn’t work with a lender.
If you want a more accurate view of how your situation is likely to be assessed, you can use our Mortgage Readiness Check. It shows where a case holds up and where lenders are likely to be cautious before you apply.
Costs of buying a property
There are many mortgage fees that could be charged when buying a house and it is important to factor these into your calculations to work out which mortgage deal is the right one for you. Here is a summary of the main ones you might come across but there may be others.
Booking fee – A booking fee (or application fee) is paid at the start of the mortgage application process to ‘book’ your loan whilst your application is dealt with.
Arrangement fee -This is paid to the lender to go ahead and arrange the mortgage. This is a mortgage cost not to be overlooked!
Valuation fee – This is a fee charged by the lender to carry out a survey on the property you are buying. It is a basic survey to check the property is adequate to lend on. The fee will be higher if you opt for a more in depth survey.
CHAPS (Clearing House Automated Payment System) fee – Also known as a Telegraphic Transfer fee, this is charged for sending the mortgage funds to your solicitor.
Mortgage account fee – This is a fee charged by your lender for setting up, maintaining and closing down your account.
Higher lending charge (HLC) – If you you have a small deposit and your mortgage has a high loan-to-value, your lender can charge you this mortgage fee to cover any increased risk. These fees are currently uncommon.
Own building insurance fee – This is a more unusual fee so check with your lender whether it is applicable to your mortgage.
Other costs to consider when buying a house are legal fees, mortgage advice and deposit.
Legal fees – Legal fees are paid to your solicitor for completing the legal work involved in the mortgage process. This mortgage cost is also known as a conveyancing fee.
Mortgage advice fees – As mortgage options are so vast and complicated, advice from a mortgage broker can be extremely valuable. Costs can vary depending on how much time and expertise your case is likely to require.
Deposit – You will also need a deposit. The amount you need will vary greatly depending on your mortgage choice and there is no standard amount. However, the basic principle is that the bigger the deposit you have, the cheaper the mortgage deal will be for you. As a first time buyer you are likely to need at least a 10% deposit but there are options available to you if you are struggling to get a deposit saved. Read our guide to deposits here for further information.
Stamp duty – This can be a significant cost and there have been recent changes to the way it is calculated. See our our stamp duty calculator to estimate how much this might cost you.
Step 4: Finding the right property
Now you know how much you want to spend on your property, the next step in the house buying process is to find the right property to purchase. First you need to decide which area you want to move to. You may already know this or you may need to do some research.
When you know which area you want to buy your property in, next you need to decide what type of property you would like. Do you want a flat or a house? Freehold or leasehold? How many bedrooms or bathrooms? Do you need a garden? Once you are clear about what you are going to look for when buying a house, it is time to get searching.
How to find houses that are for sale:
Speak to the local estate agents in the area. Register your details with them and ensure they know the types of property you are and aren’t interested in.
Run regular searches online.
Check local papers in the area.
When you see a property of interest, schedule a viewing with the estate agent. When viewing a property, the following tips will help you :
Take pictures and write notes. This will help you remember each property when you review what you have seen.
Take a walk around the local area to get a feel about whether it is the right kind of location for you.
If you like a property, ask the estate agent or the owner who is showing it to you plenty of questions.
The top 10 questions to ask when buying a house:
How long has the property been on the market?
Why are the vendors moving?
How many viewings have there been?
Have there been any offers?
Where are the vendors moving to and are they in a chain?
What renovations have been done to the property?
Have there been any neighbour disputes?
What renovations have been carried out and when?
What is the parking situation?
Have there been any structural issues with the property?
Although small issues shouldn’t be a deal breaker, it is useful to make a list of things you see so that if you go on to make an offer, you can discuss them with the vendor.
Things to look for when buying a house:
Damp – look for wet spots, peeling wallpaper, condensation on the windows, mold patches, check inside cupboards and wardrobes to see if they smell musty.
Ceilings – look up to check for cracks, slow drips, browns stains
Switches – flick switches as you enter rooms to test they work.
Doors and windows – open and close them to check that they all work
Wiring – check the wiring age and test stoves and ovens.
Power points – note where they are and how many there are. Test sockets
Boiler – ask the vendor to turn the boiler and central heating on. Check radiators get hot and check them for rust and leaks.
Plumbing – turn taps on and off and flush toilets. Test the water pressure.
Locks and keys – Ask the vendor for the keys to test locks work.
Phone – check your mobile phone for a signal
Loft – ask for access into the loft and check for rot, cracks or holes.
Roof – try to see if there are missing tiles or potential problems with the gutters.
Outside walls – check for wall cracks and mould.
Neighbours – look at the condition of the neighbours’ properties.
Step 5: Understand how lenders will assess your case
At this point, most guides will tell you to start comparing mortgage deals.
That’s not actually the part that decides whether you get approved.
Before product choice matters, your case has to work under a lender’s assessment model.
Lenders don’t all look at applications the same way. They apply different rules to:
- income (what counts, what gets reduced, what gets ignored)
- affordability (how much of your income is usable)
- credit history (what’s acceptable vs what isn’t)
- property type (what they’re willing to lend on)
This is why two lenders can give very different outcomes for the same borrower.
At this stage, what matters is not:
- finding the “best rate”
- or picking a product
It’s understanding:
- whether your case is straightforward or needs structuring
- which lenders are likely to accept it
- where it might break if presented incorrectly
Once that’s clear, product choice becomes easy. Before that, it’s guesswork.
Mortgage in principle: what it actually tells you
You can apply for a mortgage in principle (MIP) at this stage.
This gives an indication of how much you might be able to borrow, but it’s important to understand what it does and doesn’t confirm.
A mortgage in principle:
- is based on initial information, not full verification
- doesn’t guarantee the lender will approve the case
- may not reflect how your income or property will be assessed in detail
It can still be useful:
- estate agents often prefer buyers who have one
- it shows you’re in a position to proceed
But it shouldn’t be treated as confirmation that everything will work.
Getting your case ready
Before you make an offer, it’s worth making sure your application will stand up under scrutiny.
That means:
- having your documents ready (income, bank statements, ID)
- understanding any potential weak points in your case
- knowing which lenders are likely to fit your situation
This is the stage where small details can change the outcome.
You can see how your mortgage application is likely to be interpreted before you apply by running a quick readiness check.
It highlights where lenders are likely to be comfortable and where you might struggle.
Step 6: Making an offer
When you find a property that fits your requirements and ticks as many boxes as possible, the next step in the process of buying a house is to make an offer to the seller. You will usually do this through the estate agent and they will liaise with the property owner and let you know if the offer is accepted.
If it is declined, try to find out the reason it was declined and if feasible, you can make another offer or continue with your property search.
If your offer is accepted then you are well on your way to successfully buying a house.
We suggest that you ask for them to ‘take it off the market’ once the offer is accepted as this definitely helps reduce the chance of gazumping, where the seller accepts another higher offer after the sale has been agreed. Remember, either party can pull out at any time until contracts are exchanged.
You may find that they require you to have a survey or valuation completed on the property before they are willing to take it off the market. You can read our guide to the different types of survey to understand this part of the process better.
Step 7: The actual buying process
With an offer accepted, it is now time to finalise your mortgage arrangements. You should already have your paperwork in good order so that you can get your formal application in as soon as possible. For further information about the mortgage application process, read our informative guide here.
Remember, we will be here to help and guide you all the way through this process so you can concentrate on your day to day life. Once your mortgage has been approved, you can take a sigh of relief because now your purchase is really happening!
It is good practice to instruct a conveyancer to begin work on your purchase as soon as your offer is accepted.
From here, the next phase of the house buying process is to wait for the exchange of contracts to take place and then the final completion. Final completion is when you pay for the property and take ownership of it.
Once completion has taken place, your ‘buying a house’ journey has come to an end and it is time to move!
Before you get to this stage however, it is a good idea to be organised and plan ahead for your big move, as it can be very stressful. Have a read through our guide to moving which provides tips and timelines to help you have a stress free moving day.
Final considerations
You will of course have many questions to ask when buying a house, so if you still feel like you need to discuss it further and need advice and guidance regarding your own particular situation with regards buying a house, then speak with an expert adviser.
See How Lenders Are Likely to Read Your Case
Most borrowers compare rates before they know whether a lender will actually like their case.
That’s how people waste time with the wrong bank, get weaker offers, or end up with avoidable declines.
The readiness check gives you an early read on how your case is likely to land, where the pressure points are, and whether lender choice needs more care.
- Avoid wrong lenders
- Spot pressure points
- Understand case fit
- Check before applying
See How Lenders Are Likely to Read Your Case
Mortgage Readiness Check
See how lenders will read your case.
Whether the income pattern looks stable enough to rely on, and how much of it they are prepared to include.