Buying a property can be a complicated process. To help understand how it works, below is a list of who is who so you will know exactly what they do and what to expect. When you’re ready to discuss your mortgage requirements, our expert mortgage advisers are on hand to help you 7 days a week.
Estate agents are mainly engaged in the marketing of property available for sale. Estate agents need to be familiar with their local area, including factors that could increase or decrease property prices.
An estate agent will show you round properties they think, or you stated that you are interested in. They should be able to tell you details about any property you’re considering making an offer on and should provide you with First Time Buyer Mortgage Advice.
As well as selling properties, the estate agent is responsible for liaising between solicitors, buyers and sellers, with the aim of speeding the buying process along.
Estate agents fees are charged to the seller of the property. If the seller does sell the property and complete the sale of their property to a buyer that was introduced by the estate agent, then the estate agent will charge a commission of anything from 0.75% up to 3%.
An estate agent may recommend a particular mortgage broker, surveyor or solicitor, but you’re under no obligation to use the one they suggest.
A mortgage broker acts as a middleman who brokers mortgage loans on your behalf to help find you the best mortgage deal that suits your needs. Traditionally, banks and other lending institutions have sold their own products however as markets for mortgages have become more competitive the role of the mortgage broker has become much more popular. Mortgage brokers are the largest sellers of mortgage products for lenders in the United Kingdom.
A broker will also ask you about your income and outgoings, as well as your budget, so that they can establish how big a mortgage you might be able to get. Your broker will then talk you through the different types of mortgage you can choose from. Once they’ve recommended a mortgage for you, they can then guide you through the application process.
Some brokers and advisers are tied to just one or a restricted number of lenders, whereas others can recommend deals across the whole mortgage market, giving you access to a much wider choice of deals.
All brokers receive a payment from the lender when the mortgage completes. Some don’t charge any fees on top of that, whereas others will charge you a flat fee, or a percentage of the mortgage amount however they must tell you how much you will have to pay them at the outset.
A mortgage lender is a financial institution, bank or building society that offers and underwrites residential mortgages. Lenders have specific borrowing guidelines to verify your creditworthiness and ability to repay a loan. They set the terms, interest rate, repayment schedule and other key aspects of your mortgage
In law, conveyancing is the transfer of legal title of property from one person to another, or the granting of an encumbrance such as a mortgage or a loan.
A conveyancing is a necessary process in both buying or selling property. A conveyancing solicitor helps with the settlement and title transfer process by ensuring that their client is meeting all legal obligations and that their client’s rights are protected during this transactionA conveyancing solicitor will need to conduct various searches before your property purchase can go through. Searches typically take around two to four weeks to complete, but remember that their results may prompt your solicitor to make further enquiries.
The solicitor will arrange the exchange of contracts, as well as completion of the deal, which involves handing over the funds required to buy the property. They will also arrange for the property to be registered with the Land Registry. Conveyancing fees typically cost from around £900 to £1,500 depending on the purchase price, while searches are likely to cost around £250-£350.
Once contracts have been exchanged by your solicitor and the seller’s solicitor, you will be committed to buying the property.
You can view a typical conveyancing process by clicking here
A property survey is a detailed inspection of a property’s condition. The property surveyor’s role is to check the value and the condition of a property. Your lender will require a surveyor to conduct a valuation. The surveyor can also produce a more in-depth survey if you want one so that they can identify any potential structural problems, or issues such as damp or subsidence. They will also highlight any major repairs or alterations needed, such as fixing the roof or chimney chute If the surveyor’s report shows major repairs are required, you could at this point reduce your offer to reflect the cost of carrying these out. Basic surveys typically cost around £250 (depending on the value of the property), but if you want a more comprehensive building or structural survey, expect to pay upwards of £600. Your mortgage lender will only provide you with a firm mortgage offer once they are happy with the surveyor’s valuation.