Home buying guide - Scotland

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

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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   

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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.
• 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.

Residential property – purchase price	Rate of Stamp Duty Land Tax
Up to £125,000	0%
£125,001 to £250,000	1%
£250,001 to £500,000	3%
£500,001 and over	4%

• 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.
• 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?

Let each estate agent know if you have a mortgage promise and keep in contact with them. They should be able to email, call or even text you with new properties as soon as they come up.

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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. From December 1, 2008, houses for sale in Scotland have had to be marketed with a Home Report.

This is a pack of three documents:

• Single Survey - the Home Report will be made available on request to prospective buyers of the home. An assessment by a surveyor of the condition of the home, a valuation and an accessibility audit for people with particular needs.
• Energy Report - an assessment by a surveyor of the energy efficiency of the home and its environmental impact. It also recommends ways to improve its energy efficiency.
• Property Questionnaire - completed by the seller of the home. It contains additional information about the home, such as Council Tax banding and factoring costs that will be useful to buyers.

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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

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, make your offer as a sealed bid, draw up contracts of sale, agree a settlement date and arrange the ‘conclusion of missives’.

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 go 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.
• Arranging to use the Halifax Conveyancing Service is really simple - 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.

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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.

We can offer you great value conveyancing services for a fixed fee from our specially selected panel of independent legal firms.

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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.

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Making an offer
In Scotland, the seller invites offers in excess of the asking price through a sealed bids system, where all interested parties make their bid in writing. Your conveyancer then puts in your offer - including a price, date of entry, and a series of conditions regarding the property. When you make your bid, try to avoid a round figure – instead, to avoid a tie with the other bidders, try an odd amount such as £100,101.

If your bid is successful, the seller's conveyancer will reply in writing with their conditions. This exchange of letters, known as missives, continues until all differences are resolved. Once everyone is happy, the well-known phrase, “we hold the bargain as concluded”, is spoken and the contract is binding.

Finding a mortgage that’s right for you
Once your offer has been accepted, it's time start arranging your mortgage. We are the UK’s No.1 mortgage lender* so we’re sure we could find a mortgage that will suit your needs perfectly.

Step 1 - Decide which the best 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.

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

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Your mortgage offer
Once we've made all the relevant checks, we will make you a mortgage offer. This is a document setting out the details of the mortgage which will arrive by post. A copy goes to your conveyancer too. You need to check this and let us know if there is anything you don't understand.

Conclusion of Missives
This is when the terms of sale and purchase of the property, including the date you collect the keys (settlement date) are confirmed.

You'll need to sign the documents (that transfer the property over to you and the mortgage document – known as standard security).

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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 your home and belongings.

Halifax Home Insurance offers:

• Up to 20% discount on buildings and contents insurance when you buy online (excluding Halifax renewal customers)
• Up to 30% No Claims Discount
• Option to pay monthly at no extra cost
• Unlimited buildings sum insured - your home is automatically covered for the full cost of rebuilding

 

The keys are yours
After everyone is happy with the deal, there is what’s known as the exchange of ‘missives' 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.

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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.