A step-by-step guide to the house buying process

Key takeaways

• Work out your finances at the start. Before you start your property search, work out your budget, including deposit and borrowing options.
• Obtain a Decision in Principle. To understand how much you may be able to borrow, a Decision in Principle can help.
• Do your research ahead of time. Research locations and properties that match your lifestyle, requirements and budget.
• When you should make an offer. Once you've found a suitable home, you can make an offer and negotiate the price if necessary.
• When to apply for a mortgage. You can apply for your mortgage and appoint a solicitor to handle the legal process.
• Complete surveys, searches and legal checks. Before committing to the purchase, conduct surveys, searches and legal checks.
• Exchange contracts and complete the purchase. Exchanging contracts makes the purchase legally binding. On completion day, you can collect your keys and prepare to move in.

What are the main stages of buying a house?

From initial budgeting and the property search to completion day, our timeline below helps you understand the key stages of buying a house.

Step 1: Work out your budget and mortgage options

Whether you're a first-time buyer saving for a deposit or an existing homeowner planning your next move, setting a budget is often the first step in the home buying journey.

Before you start searching for a property, review your income, existing financial commitments and available savings. Many buyers choose to obtain a Decision in Principle, which indicates how much you may be able to borrow and helps focus your property search.

For London buyers, property prices vary significantly between boroughs and neighbourhoods. Taking the time to understand affordability may help you identify areas that best suit your budget and lifestyle.

Costs to budget for when buying a home

When buying a new home, costs can vary, including everything from the deposit to later home setup payments. In the table below, we run through costs you may need to account for:

Step 2: Find the right property

Once you have a clear budget, you can begin exploring properties and areas that fit your requirements. For some buyers, this may mean finding somewhere close to transport links, or choosing a property with more space, access to green areas or a shorter commute.

When searching for a home in London, consider location, property type, such as off-plan properties or older homes, local amenities and how well each option may suit your future lifestyle. Creating a list of essential features can make it easier to narrow your options and compare properties with confidence.

House-hunting checklist

To help you narrow down your search, follow our house-hunting checklist:

1. Confirm your budget and borrowing amount
2. Research local property prices
3. Check commuting routes and transport links
4. Review local schools and education options
5. Assess nearby amenities and services
6. Consider future development plans in the area
7. Decide on the number of bedrooms and living space required
8. Review parking arrangements if needed
9. Check energy efficiency features
10. Compare service charges, management fees or estate fees where applicable
11. Consider your future lifestyle and family requirements
12. Attend viewings and take notes for comparison

For additional guidance, see our property viewing checklist.

Step 3: Make an offer and have it accepted

Once you've found a property that feels right for you, the next stage is making an offer. The seller may accept the offer, reject it or negotiate before agreeing on a final price. While an accepted offer is an important milestone, the purchase typically won't become legally binding until you exchange contracts.

During this period, buyers begin arranging mortgages and legal representation so the transaction can progress smoothly.

Step 4: Apply for your mortgage and instruct a solicitor

After your offer has been accepted, you can proceed with your full mortgage application. The lender assesses your finances in greater detail and may arrange a valuation of the property.

You'll need to appoint a solicitor or conveyancer to manage the legal aspects of the purchase. Their role often includes conducting searches, reviewing contracts and handling communication between parties so that legal ownership can be transferred successfully. The legal process helps identify issues that could affect the purchase later on.

Who does what during the legal process?

From your role as the buyer to the seller's solicitor, here's a run-through of the specific roles and responsibilities of everyone in the legal process:

Step 5: Surveys, searches and legal checks

As the purchase progresses, you'll usually arrange several checks to learn more about the property. These may include a home survey to identify potential maintenance or repair work, alongside local authority searches that can reveal issues affecting the property, such as restrictions on future extensions. Your solicitor or conveyancer will also complete the necessary legal checks before you exchange contracts.

Step 6: Exchange contracts

Exchanging contracts is a major milestone in the house-buying process, as it makes the transaction legally binding and commits both parties to completing the sale. At this stage, the deposit is usually transferred through the solicitors and a completion date is agreed.

Step 7: Complete the purchase and move in

Completion is when ownership officially transfers from the seller to the buyer. Once the seller receives the purchase funds and the transaction is complete, they can release the keys and you can arrange to move in.

For both first-time buyers and existing homeowners, this marks the final step in the home-buying journey and the start of settling into a new home.

How long does it take to buy a house?

The timeline for purchasing a property varies depending on individual circumstances, mortgage requirements and whether a property chain is involved.

What can delay the house-buying process?

Several factors can affect how quickly a purchase progresses, such as:

• Property chains involving multiple transactions
• Delays in mortgage approval
• Survey findings that require further investigation
• Outstanding legal enquiries
• Missing or incomplete documentation
• Delays in obtaining search results
• Changes in buyer or seller circumstances
• Issues relating to leasehold arrangements where applicable

How buyers can help avoid delays

When house hunting, to avoid delays you could:

• Obtain a Decision in Principle. Before starting your property search, a Decision in Principle can give you an idea of how much you may be able to borrow.
• Have key documents ready. Keep your identification and financial documents to hand so you can provide them quickly if requested.
• Respond promptly to solicitor and lender requests. Reply quickly and stay in contact with both parties to help keep the purchase moving.
• Research locations and properties thoroughly. Before making an offer, check that the property and the surrounding area suit your current and future needs.

Explore our range of new homes in London, with offers to help you move. Check our T&Cs to see if you're eligible.

Disclaimer:

This article is for general informational purposes only and does not constitute mortgage advice. We would always recommend that advice is taken from a regulated mortgage adviser regarding your specific circumstances.