Home buying guide - England, Wales and Northern Ireland

The basic steps to owning your own home are listed below and we’ll help you take each one with our Home Buying Service.

Get a rough idea
Use our How Much Could I Borrow tool to get an idea of how much we could lend you.

And then get it in writing
Once you have a rough idea of how much we could lend you, then it's a good idea to complete a 'Halifax Mortgage Promise'. You may also hear this called an agreement in principle. It takes about 20 minutes to complete and will be invaluable to you when you are looking for a home to buy because this will give you a much better indication of the property price range to look at.

Because at this early stage, we won’t have made a valuation of the home you want to buy, the final amount we will lend you may be different from the Mortgage Promise. And obviously all the other information you give us while applying for a Mortgage Promise must be correct.

Ask us for a mortgage promise 

After the date of your Mortgage Promise, any changes to your circumstances, the loan amount, or the property valuation may alter our final lending decision.

Don’t forget the other costs
The costs of buying, selling and moving home can soon add up. Here's a summary of the costs you'll need to think about when you're budgeting.

• The deposit - if you're buying a home you'll probably need a deposit. This varies from lender to lender but at Halifax we ask for at least 10%. You normally pay the deposit when you exchange contracts.
• Mortgage product fee - mortgage deals generally have a product fee associated with them. It can be added to your mortgage amount but remember that interest will be charged.
• Mortgage account fee - this fee is to cover the setting up, routine maintenance and closing down of the mortgage account.
• Higher Lending Charge - if you're borrowing a large percentage of the value of your property, the lender may make a Higher Lending Charge. At Halifax, we do not charge Higher Lending Charges on our mortgages.
• Estate Agency Fee - this only applies if you are selling your home.
• Stamp Duty Land Tax - this is payable to the government on properties valued at £125,000 or more and it is worked out as a percentage of the purchase price. Also, first-time buyers can now secure a two-year temporary stamp duty relief up to £250,000.

• Valuation fee - a valuation is arranged simply to find out if the property is worth the amount you want to borrow and is suitable to lend a mortgage on. The valuation fees vary depending on the value of your property.
• Conveyancing fees - you will need a conveyancer or a solicitor to carry out all the legal work required. The fees will vary depending on the value of your home and how much work is involved. Your conveyancer will provide you with a breakdown of their costs including local authority searches and land registry fees. Convey4u offer a conveyancing comparison tool which will allow you to find and compare quotes for solicitors and conveyancers in your local area.
• Removal firm - if you want to use a removal firm, get an indication of how much it will cost from a local remover.
• Discharge fee - you have to pay this to some lenders for releasing their charge over a property if you sell the property and/or repay their mortgage.

Now that you have a much better idea of how big a mortgage you can get and the costs involved in buying and selling your house you can start looking for your new home.  

Buying a property

Start by narrowing down the search by choosing an area you like. And make sure it offers everything you need. Is it easy to get to work? Are you close to shops? Are there good public transport links?

Searching for a property

When searching for a property, you will need to consider what is important to you:

• Number of bedrooms/bathrooms
• Size of rooms
• Garage/driveway
• Garden
• Conservatory
• If you've the time or money to renovate
• If the area's right for your lifestyle

Find estate agents your happy with:

• Keep in contact regularly.
• They should be able to email, call or text as soon as new properties come up.

Also tell your agent if you have an agreement in principle. You'll benefit from them knowing you're serious about buying.

Putting in an offer
You'll need to make your offer through the seller's estate agent. They will contact the seller on your behalf with your offer. But first…ask yourself a few questions:

• How much do you want the property?
• How much can you spend to get it and are other people interested?
• Bear in mind all the information you have gathered on your viewings – does it need a lot of work doing to it, has it been on the market a while?

Remember that:

• It's not all about the highest offer – a seller might choose a first time buyer because they’ll be able to move quickly and this could be more important than a slightly higher offer.
• Discuss your offer with the estate agent – make it as tempting as possible, for example, say if you can move immediately.
• If your initial offer isn't accepted – decide whether you want the property enough and can afford to increase your offer. The estate agent may be able to offer advice on how much it might take to secure the property.
• Gazumping - “gazumping” is what happens when you are out-bid by a rival buyer after you’ve had an offer accepted. If the seller decides to accept their offer you could lose money already spent on your conveyancing - unless you are insured through your conveyancer.

Your offer is accepted?
Now you need to start your mortgage application. You can start your Halifax mortgage online, in branch or over the phone. It's up to you.

Selling a property
If you’re selling a property at the same time, you’ll have some juggling to do. And you’ll have a few more things to think about.

For a start, if you live in either England or Wales and are thinking of selling your home you’ll need a 'Home Information Pack' (HIP). The HIP contains of a number of documents - some mandatory some optional - all aimed at providing the buyer with key information about your property.

The mandatory documents are:

• Sale statement – a summary of the terms for sale
• Local Authority Search – a search of the local authority to identify anything which may affect the property, such as plans for development
• Drainage and water search – to provide information about any pipes and sewers
• Energy Performance Certificate – to show how energy efficient the property is
• Evidence of Title – to provide legal details of the property, such as whether the title is registered or unregistered, freehold or leasehold

Other optional documents to be included, such as:

• Home contents form – to show what's included with the property
• Home use form – to show how the property is used, for example for residential or business purposes

Speed up the sale
There are a number of things you can do to make sure the sale of your home goes through quickly and smoothly:

• Think like a buyer
• Make necessary repairs
• Remove the clutter
• Make it light and bright
• Make your home odour free
• Remove personal items
• Arrange furniture for optimal effect
• Give your house kerb appeal
• Add a fresh coat of paint
• Price your home to sell
• Be willing to negotiate
• Use feedback to make improvements

You may find our Homemover (pdf) or First Time Buyer (pdf) checklists useful when getting ready for your move.

Finding a mortgage that’s right for you
Once your offer has been accepted, it's time to start arranging your mortgage. Naturally, you’ll want to be sure that the mortgage you choose is right for you. You need to be happy you’ll be able to afford the repayments – now and in the years to come. You’ll also have to decide how long you want to be paying for your home. And how much flexibility you’ll need. 

To help you, we’ve outlined the four steps to finding the best deal:

Step 1 - decide which way to repay what you've borrowed. You can choose a repayment mortgage, an interest only mortgage, or a part repayment-and-part interest mortgage. Find out more about your options for repaying a mortgage.

Step 2 - decide how quickly you want to repay your mortgage. It’s usual to pay off a mortgage over 25 years but you could spread the cost over 40 years.

Step 3 - choose the type of mortgage that will suit you. Use our mortgage calculator to help you choose from the great range of fixed or tracker deals we offer.  

Step 4 - think about how much flexibility you will need. All our mortgages have special features - whichever deal you choose, we'll give you a whole host of special features that offer flexibility that can really help you manage your mortgage.

If you need help from one of our mortgage experts, simply phone us on 08458 50 37 05 or call into your local branch. Find your nearest branch

Before you start your application
To make your Halifax mortgage application as simple as possible you should have the following information handy:

• Your addresses for the last three years
• Any existing accounts with Halifax
• Your employment and income for the last 18 months
• Your credit commitments
• Your current mortgage or tenancy
• The property you're buying

When you’ve arranged your mortgage, the next step is the legal part known as conveyancing.

Arranging a Valuation or Survey
When you’ve found the home you want you’ll need to know what it’s really worth. You can find out for sure by arranging a valuation or survey before you make your offer.
Halifax will get a valuation for the property you want to buy, but if you want a closer examination, for added peace of mind, we can help arrange a survey for you.

What is a valuation?
A valuation is an inspection of the property to ascertain it's acceptability to the lender as security against the mortgage loan, for which the borrower may have to pay. We always carry out what we call a level 1 Halifax valuation report.

If you prefer, you can request a more detailed valuation or survey:

Level 2 Survey and Valuation

• The Survey is for you and we don't receive a copy. We only receive and make our lending decision on the Halifax Valuation
• The Survey will give you guidance on defects and other issues that should help you make your decision to buy
• The surveyor will send you the appropriate terms and conditions for you to read, sign and return.

Level 3 Building Survey and Valuation

• The Building Survey is a detailed report on the property, which can be tailored to fit your requirements
• The Building Survey is for you and we don't receive a copy. We only receive and make our lending decision on the Halifax Valuation
• The surveyor will send you the appropriate terms and conditions to read, sign and return

A survey is designed to highlight any serious problems and it could actually save you money. You may be able to renegotiate the sale price to reflect the cost of any repairs. You may even decide you don't want to buy at all.

The mortgage offer
Once the valuation or survey has been conducted and we have all the information we need, we will be able to confirm our mortgage offer.

First, ‘note interest’
You've found your dream home but how do you buy it? Firstly, you need to 'note interest' in the property, which starts the legal process of buying (or selling) a property - called conveyancing.

So you’ll need a conveyancer, that’s someone with legal qualifications who will set the legal process in motion. They will then carry out a variety of checks known as searches, arrange the exchange of contracts and agree a completion date.

Choosing the right conveyancer to carry out the legal work is really important - they can help your move go through quickly and smoothly. If you choose to have all the legal work carried out by a firm from our panel of conveyancers you can expect:

• A first class service -  we'll work with the conveyancer to help make your move straightforward, from start to finish.
• Great value - we'll give you a fixed-price quotation so you don't have to worry about any hidden fees. And if the sale goes through, you won’t be charged a conveyancing fee - although you may have to pay something for things like search fees.
• To be kept informed - we'll make sure you're kept up to date about progress by phone, email or text – you choose which.

Speak to a Mortgage Adviser about your mortgage application and we’ll arrange for a conveyancer to contact you within 24 hours to start the ball rolling. 

What does it all cost?
Cost can differ quite considerably and it’s important to find a good conveyancer, so ask for recommendations and remember, sometimes it's worth paying a little more for extra peace of mind.

Convey4u offer a conveyancing comparison tool which will allow you to find and compare quotes for solicitors and conveyancers in your local area.

The Contract

Once all the necessary legal checks are completed, you'll be able to sign the contract.

• The seller signs an identical contract and you swap them in what's known as 'exchange of contracts'
• You pay the deposit at this point
• Once contracts are exchanged you are legally bound to buy the property.

Make sure you're happy with everything before you sign:

• Have you received your formal mortgage offer?
• Are you happy with the survey report?
• Have the terms of the contract been checked and explained to you?

Get Insurance Cover
It’s a good idea to arrange your insurance when you arrange your mortgage. We can provide you with all the protection you’ll need for you and your home.

The keys are yours
Once everyone is happy with the deal and the sale is completed.  Then, you’ll be able to collect the keys and move in. It pays to plan for this day well in advance.

A smooth move
Now that you've collected the keys to your new home, don't forget to inform the following of your change of address:

• Bank/Building Society
• Credit card/loan/store card companies
• DVLA and motoring organisations
• Car Insurance
• Your employer
• Local tax office
• Doctor, dentist and optician
• Schools
• TV licence, satellite and cable companies
• Catalogue companies
• Vet
• Magazine/publication subscriptions
• Library
• Newsagent
• Internet service provider
• Window cleaner
• Gyms, sports and social clubs
• Mobile phone and telephone companies

At the end of it all, you’ll be able to sit back in the comfort of your new home and start planning home improvements.

Need a little help?
Speak to one of our mortgage experts:

• By phone - Call us on 08458 50 37 05
• Apply at your local branch – To arrange an appointment with a professionally qualified Mortgage Adviser, call us on 0845 602 9717. Or find your nearest branch and contact them to book an appointment.