Buying a House

Buying a house is a complex process. From solicitors to surveyors and deposits to mortgages, there are a lot of moving parts to understand before you can truly get started. 

We’ve put together this helpful list of everything you need to buy a house, to make remembering everything feel less overwhelming. 

1. A Deposit

A deposit is a down payment that you make to reassure the bank that you’re capable of paying back your loan/mortgage. 

What sort of deposit do you need to put down in order to buy a house?

Typically, a deposit might be 10-15% of the value of the property with 5% considered the absolute minimum. 

The better a deposit you can pay upfront, the more favourable a mortgage you’re likely to be offered. 

We offer a Deposit Unlock scheme to support you with your deposit. Find out how we can help. 

What is the best ISA to use if you’re saving up to buy a house?

A Lifetime ISA is a common choice that many first-time buyers in the UK opt for. 

With a Lifetime ISA, your savings are incentivised by the government, with your yearly deposits will be matched at a rate of 25% up until £1000. 

So, if you hit the upper threshold of saving £4000 a year, the government would top this off with an additional £1000. 

It should be noted that this scheme only applies to those aged 50 and below and comes with certain withdrawal restrictions; namely that can only withdraw money from a Lifetime ISA under specific circumstances and life events, such as becoming terminally ill, reaching the age of 60, or purchasing your first home. 

If you’ve owned property before, it’s a better investment to make use of an ordinary high-interest ISA. However, it's worth noting that you can only open one ISA per bank. 

2. A Mortgage

A mortgage is essentially a loan a bank gives you to help you buy your home. When applying to the bank for one, there’s certain criteria a bank will consider before approving the loan. This will include how you’re funding your deposit as well as your credit score. 

What credit score is needed to buy a house?

While there is no minimum score per se when it comes to being able to buy a house, as it really varies from bank to bank, and other factors are usually considered too, it’s still worth establishing habits that will help your credit score look as good as possible – these include regularly paying your bills on time and ensuring that you have a plan in place to ensure that any debts you owe are paid off. 

What is the minimum income needed to buy a house?

While, again, there isn’t, strictly speaking, a minimum income needed to buy a house, it is worth making sure that before you commit to a mortgage, that you have a sufficient and regular enough income that will allow you to cover the monthly repayments required by the bank providing you with the mortgage. 

What is the legal age to buy a house in the UK?

In the UK, you need to be at least 18 years old in order to secure a mortgage. 

3. Identification documents

Regardless of whether you require a mortgage or not, whenever you make a considerable purchase, like buying a house, there will be a number of legal checks required. 

To avoid having things drawn out more than necessary, it is recommended to have the following documents available upon request: 

What documents do you need to buy a house in the UK?

You should have the following at the ready: 

• At least 3 types of ID: These could include things like a council tax bill addressed to you, a passport, a driving licence, a P60, or a P45.
• A proof of address: For this, you can use any physical statement directly addressed to you, including any physical bank statements, utility bills, DVLA, or HMRC letter addressed specifically to you. Please note that you cannot use any correspondence addressed to “The Occupier” or other generic, unidentified persons.
• The source of your deposit: In order to pass fraud checks, it’s important that you, as the buyer, be clear and transparent about where you’ve sourced the money to cover the cost of your deposit – this will involve ensuring that you have some sort of physical documents, like a bank statement, to support your claim. If you were gifted part of the deposit from a family member or friend, you’ll need their banking details too.
• Bank statements: Your financial history will be subject to checks carried out by the bank. You should keep up to a year of bank statements and account history ready to provide to them.

Ready to buy a house?

The requirements to buy a house can seem like a lot but it’s all worth it on move in day! 

If you’re ready to start your journey, you can book an appointment to view our wide selection of homes today!