How to buy property on your own
Buying a home on your own can be a daunting but incredibly empowering journey. Whether you’re single, recently separated, or simply choosing to go it alone, getting on the property ladder with just your income is absolutely possible. This blog about the process when you buy property is tailored for solo buyers in the UK looking to purchase a property using a mortgage. We’ll break down every step of the process, from affordability assessments to finding the right home, getting expert advice, and completing your purchase with confidence.
Understanding Solo Mortgage Affordability When You Buy Property
Before you begin house-hunting, it’s vital to understand what you can afford. Mortgage lenders in the UK typically base your borrowing potential on your annual income, credit score, monthly outgoings, and any existing debts.
How Much Can You Borrow on a Sole Income When You Buy Property?
Most lenders offer mortgages up to 4.5 times your annual income. For example, if you earn £40,000 per year, you could potentially borrow up to £180,000. However, this can vary depending on:
- Your credit history
- Type of employment (permanent, self-employed, contract)
- Monthly financial commitments
- The size of your deposit
Use online mortgage calculators to get a rough estimate, but for a tailored view, speaking to a mortgage advisor is essential.
Saving for a Deposit
A deposit is your financial contribution to the purchase price of the property. The minimum deposit required is usually 5% of the property price, but a larger deposit (10% to 25%) will give you access to better mortgage rates.
Tips for Saving:
- Set a monthly savings goal
- Use Lifetime ISAs for government bonuses
- Cut unnecessary expenses
- Look into schemes like Shared Ownership or First Homes (if eligible)
Getting Mortgage Advice
Navigating the mortgage market solo can be overwhelming. A qualified mortgage advisor, like those at Oportfolio Mortgages, can help you:
- Understand your affordability
- Find the most suitable mortgage deals
- Handle paperwork and liaise with lenders
- Avoid common pitfalls and delays
They act as your advocate throughout the process, ensuring you make informed and confident decisions.
Securing a Mortgage Agreement in Principle (AIP)
An Agreement in Principle (AIP) is a statement from a lender confirming how much they may be willing to lend you based on a soft credit check. It’s not a guarantee, but it helps:
- Strengthen your offer on a property
- Set a clear price range for your search
- Identify any credit issues early
A mortgage advisor can help you obtain this quickly and easily.
Searching for Your Ideal Home
Once your budget is set, the exciting part begins: finding your new home. Consider the following when narrowing your search:
- Location and transport links
- Proximity to work, friends, and family
- School catchment areas (for future resale value)
- Local amenities and safety
Use platforms like Rightmove, Zoopla, and local estate agents to explore listings. Be realistic about compromises, as a solo buyer, you may need to balance size, location, and condition within your budget.
Working with an Estate Agent
Estate agents are the middlemen between you and the seller. A good agent will:
- Help you book viewings
- Provide valuable local insight
- Assist in negotiations
Though agents act on behalf of the seller, building a rapport can work in your favour when offers are being considered.
Making an Offer
Once you find a property you love, it’s time to make an offer. Your mortgage advisor can guide you on what’s reasonable based on market trends and the AIP amount. Don’t be afraid to start below asking price, especially if the property has been on the market for a while. Be prepared for negotiation and don’t stretch yourself too thin financially.
Conveyancing and Legal Work
After your offer is accepted, you’ll need a solicitor or licensed conveyancer to manage the legal side of the purchase. They will:
- Conduct property searches
- Draft contracts
- Handle the transfer of funds
This is another area where your mortgage advisor can recommend trusted professionals.
Getting a Mortgage Offer
After your offer is accepted, your advisor will submit a full mortgage application to the lender. They’ll carry out a valuation and review your financial documents. If everything checks out, you’ll receive a formal mortgage offer. This typically takes 2-4 weeks. Once received, your solicitor will progress with exchanging contracts.
Exchanging Contracts and Completion
This is the final stretch! Once contracts are exchanged, you’re legally committed to the purchase. You’ll agree a completion date with the seller, typically a week or two after exchange. On that day, your solicitor transfers the funds and you receive the keys to your new home.
Costs to Consider
In addition to your deposit and mortgage, factor in these costs:
- Stamp Duty: First-time buyers don’t pay Stamp Duty on properties under £250,000.
- Legal Fees: Typically £800-£1500.
- Mortgage Broker Fees: Some advisors charge a fee to arrange a mortgage for you, but you can discuss this with the advisor at initial conversation stage.
- Valuation and Survey Fees: Ranges from £200 to £700.
- Removal Costs: Around £300-£600, depending on distance and volume.
Tips for Solo Home Buyers
- Budget Wisely: Account for monthly costs beyond your mortgage (utilities, council tax, insurance).
- Build an Emergency Fund: Aim to save at least 3 months’ worth of expenses.
- Don’t Rush: Take your time with decisions, this is a long-term investment.
- Ask for Help: Use professionals to guide you. You don’t have to figure everything out alone.
Why Use Oportfolio Mortgages?
Buying a home on your own is a bold and admirable step. With the right knowledge, guidance, and preparation, you can turn your dream into a reality. By working with trusted professionals and staying informed every step of the way, the journey becomes manageable and even enjoyable.
Ready to start your solo home-buying journey? Contact our experienced team at Oportfolio Mortgages today for friendly, expert advice tailored to your situation.
