Buying a new home can be an exciting time, it could represent a new chapter of your life, whether you’re moving to a new location for work or searching for a property that will give your growing family more space. Yet, it can feel like there’s a lot to juggle too, so here are eight essential tasks to complete when you’re buying property.
1. Check your credit report before applying for a mortgage
Before you apply for a mortgage, review your credit report.
Lenders will use the information in your report when they assess your application. Red flags on your credit report could lead to your mortgage application being rejected or mean the deal you’re offered has a higher rate of interest.
So, checking your report for potential issues first could give you a chance to rectify them or, if necessary, approach a specialist mortgage lender that suits your circumstances.
2. Understand your affordability
Assessing how much you have to purchase a home can help narrow down your property search. You may need to consider how much equity you hold in your current home and what mortgage repayments you can afford.
You may also complete a mortgage in principle application with a mortgage lender. This isn’t a guarantee but can give you an idea of how much you might be able to borrow and what the repayments would be.
3. Prepare your paperwork
Make the mortgage application process as smooth as possible, by getting your paperwork in order ahead of time.
You’ll usually need to provide proof of ID, address, and funds. You’ll also need to demonstrate how you’ll meet the mortgage repayments. Often, this can be done by providing payslips showing your income for the last three months. However, if you’re self-employed, you might need to provide accounts covering the last three years.
4. Weigh up your different mortgage options
There’s more than one type of mortgage, and having an idea about which one is better suited to your needs before you start searching for a lender can be useful.
First, do you want a repayment or interest-only mortgage?
Most homeowners choose a repayment mortgage, which means you pay the accrued interest each month and a portion of the amount you’ve borrowed. Assuming you keep up with the mortgage repayments, you’d own your home outright at the end of the mortgage term.
With an interest-only mortgage, your repayments would be lower, but you wouldn’t be reducing the debt. So, at the end of the mortgage term, you’d need to take out another mortgage or have another way to pay the balance.
Second, would you prefer the interest rate on your mortgage to be fixed or variable?
If you want to be certain of your outgoings, choosing a fixed-rate mortgage deal could be right for you. With this option, your repayments would be fixed for a defined period, such as two or five years. So, your outgoings wouldn’t rise if interest rates increased, but you also wouldn’t benefit if they fell.
In contrast, with a variable- or tracker-rate mortgage the interest rate you pay could change during the term. If the interest rate fell, so would your repayments. However, the opposite is true too, and your outgoings might rise.
5. Calculate the “hidden costs” of buying property
Buying a home is often one of the most expensive purchases you make. So, it’s easy for other costs to be overlooked.
Spending some time calculating these “hidden costs” could ensure you avoid unexpected bills. You might need to include legal fees, moving fees, Stamp Duty, mortgage arrangement fees, property searches, and more.
6. Consider if you’ll purchase a survey
You don’t have to purchase a property survey when you’re buying a home, but it could be useful.
A surveyor will assess the value of your property and list repairs that may be required, as well as highlight issues like structural damage or faults. It can be particularly valuable if you’re purchasing an older or unusual property.
According to a January 2025 report from Legal & General, the most common issues that go unnoticed without a survey are damp, asbestos, and a lack of building regulation for alterations and extensions.
So, while you could save money by skipping a property survey, you might miss potentially costly issues that could allow you to renegotiate the property price or even mean you decide you don’t want to continue with the sale.
7. Find appropriate home insurance
Make sure you protect your home by taking out appropriate home insurance. It could provide you with a much-needed cash injection if your home is affected by floods, storm damage, theft, and more.
If you’ll be using a mortgage to purchase your new home, your lender will often state you must have home insurance.
8. Find the right professionals to work with
When buying a property, you’ll often need to work with a range of professionals, such as a solicitor, surveyor, and estate agent. Take some time to carry out your research and find the right people for you – it could speed up the process of buying a home and mean it’s less stressful.
If you’ll be taking out a mortgage, working with a mortgage broker could also be useful. They can help you understand which lenders are more likely to accept your application and may be able to secure you more favourable terms, including a lower rate of interest.
If you’d like to discuss how we could find a mortgage for you, please get in touch.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
