After saving a deposit, viewing properties and finally agreeing a price, it can feel like the hard work is over.
But it’s simply the start of the next stage of the buying process.
The government recently announced plans to modernise home buying, making it faster, simpler and more digital. That’s welcome news because buying a home can still be a slow and sometimes frustrating process. Transactions take an average of 120 days to complete and around one in three purchases fall through, costing buyers and sellers £400m per year in wasted costs.
The proposed reforms are great news, but they will take time. Understanding what happens after your offer is accepted can help you avoid unnecessary delays and keep your purchase moving.
A full mortgage application
If you’ve only secured an agreement in principle (AIP) so far, your next step is to submit a full mortgage application. If you haven’t even got that far yet, now’s the time to get started.
The lender will carry out detailed checks before deciding whether to make a formal mortgage offer. They’ll usually ask for documents such as payslips, bank statements and proof of identity, so getting these ready beforehand can speed things up.
This is where choosing a lender with a straightforward application process, fast processing timelines and strong customer support can make a real difference. This year, Halifax (now Lloyds Bank) was recognised at the Your Mortgage Awards as the Best Lender for Service. It offers a decision in principle (DIP) in 10 minutes online, full online applications and your own mortgage dashboard, where you can upload documents, choose valuation options and get support in one place.
Once all the checks have been completed, you’ll receive your formal mortgage offer.
Should you arrange a survey?
Many buyers assume the lender’s valuation tells them everything they need to know about the property. Unfortunately, that’s not the case.
The lender wants a valuation of the property to make sure it provides suitable security for the mortgage you’re borrowing. Although you normally pay for the valuation, it’s carried out for the lender’s benefit and isn’t designed to identify every problem or tell you whether the property is in good condition.
That’s why many buyers choose to arrange a more detailed survey.
Depending on the age and condition of the property, you may be able to upgrade the lender’s valuation to include a Level 2 or 3 Home Survey (previously called a HomeBuyer’s report or Full Structural Survey) or arrange your own independent survey separately.
A survey can uncover issues such as damp, structural movement or roof problems that weren’t obvious during the viewing. It may help you renegotiate the purchase price, ask the seller to carry out repairs or, occasionally, decide not to go ahead with the purchase. Sometimes it simply provides welcome reassurance. As Countrywide Home Surveys, winner of the Best Surveyor Award at the Your Mortgage Awards, states, ‘Forewarned is forearmed’.
The legal process
Once your offer has been accepted, you also need to engage a conveyancer to handle the legal work of a property purchase. While your mortgage application is progressing, your conveyancer or solicitor is also busy behind the scenes.
They’ll carry out legal searches, review the contract, raise enquiries with the seller’s solicitor and make sure there are no legal issues or planning issues that could affect the property.
Although this stage can sometimes feel slow, a lot of the work involves waiting for information from other organisations, such as local authorities or the seller’s legal team. But it’s worth a regular chase of your conveyancer to make sure you are up to date.
What causes delays?
Not every delay can be avoided.
Property chains, slow local authority searches, unexpected survey findings and legal enquiries can all add time to the process.
However, there are things you can do to help keep your purchase on track.
Reply to requests for documents as quickly as possible, return signed paperwork promptly and keep in regular contact with your conveyancer and mortgage adviser or lender.
It’s also a good idea to avoid making major financial changes while your mortgage application is being assessed. Taking out a large loan or changing jobs could affect your application, depending on how it impacts your finances.
The finish line
As you get towards the end of the process, you’ll hear two important terms: exchange and completion.
Exchange of contracts is the point at which the purchase becomes legally binding and you pay the deposit to your conveyancing solicitor. Before then, either side can still withdraw from the transaction.
Completion is the point at which ownership of the property officially transfers to you. The money changes hands (your lender sends the mortgage funds to your solicitor) and you collect the keys to your new home.
Waiting for your purchase to complete can sometimes feel frustrating, especially when much of the work is happening behind the scenes.
The good news is that most transactions complete successfully. Knowing what to expect, responding quickly when information is needed and understanding the role of your lender, surveyor and conveyancer can all help your purchase progress as smoothly as possible.
