How to buy property on your own
Buying a home by yourself can be a terrifying yet utterly freeing experience. Single, just divorced, or just preferring to do it alone, getting up the property ladder as an individual on your own means is very much an achievable option. This blog about the property process is for single homebuyers in the UK who wish to purchase a property on a mortgage. We will walk you through every step of the process, from affordability tests right the way through to choosing a home, taking professional guidance, and purchasing confidently.
Understand Solo Mortgage Affordability When You Buy Property
Before you go looking for houses, you need to understand how much you can afford. UK mortgage lenders will generally estimate how much they will lend you based on your income, credit score, monthlies, and any debts you have outstanding.
How Much Can You Borrow Mortgage on a Solo Income When You Buy Property?
Most mortgage lenders lend 4.5 times your annual income. For example, if you earn £40,000 per annum, you can borrow £180,000. This may vary depending on:
- Your credit history in the past
- Type of employment (permanent, self-employed, contract)
- Your average monthly financial commitments
- Deposit size
Make use of online mortgage calculators as a rough estimate, but in order to view things in a personalized manner, it is important to meet a mortgage advisor.
Saving for a Deposit
A deposit is your contribution towards the price of the property you are purchasing. The minimum you can contribute is usually 5% of the property price, but contributing a larger deposit (10% to 25%) will get you a superior mortgage bargain too.
Tips for Saving:
- Set a monthly savings goal
- Use Lifetime ISAs for government bonuses
- Cut back on wasteful spending
- Investigate schemes like Shared Ownership or First Homes (if eligible)
Mortgage Advice
Addressing the mortgage market by yourself can seem overwhelming. An experienced mortgage advisor, like those at Oportfolio Mortgages, will guide you:
- Clarify your affordability
- Get the best mortgage deals
- Deal with paperwork and negotiate with lenders
- Avoid common errors and delays
They are your representative along the way, assisting you in making well-informed and confident decisions.
Obtaining a Mortgage Agreement in Principle (AIP)
A Mortgage Agreement in Principle (AIP) is an indication from a lender of how much they may be willing to lend you, on the basis of a soft credit search. It’s not binding, but it’s helpful:
- Makes your offer on a property more secure
- Reserves an agreed price range for you to look within
- Assists in highlighting any credit issues early on
Your mortgage adviser will be able to do this for you quickly and simply.
Looking for Your Dream Home
Once your budget is established, the fun really starts: looking for your new home. Take the following into consideration when limiting your search:
- Location and transport connections
- Distance from work, friends, and relatives
- School catchment area (for future resale value)
- Local facilities and security
Make use of websites like Rightmove, Zoopla, and local estate agents to browse listings. Be sensible about compromises as, as a single buyer, you may need to accept size, position, and state of repair at a price within your budget.
Using an Estate Agent
Estate agents are the intermediaries between you and the seller. A good agent will:
- Arrange viewings for you
- Provide helpful local information
- Negotiate on your behalf
Although the agents are representing the seller, building a relationship will be worth it when it comes to discussing offers.
Making an Offer
When you do find a property that’s to your liking, it’s then time to put in an offer. Your mortgage advisor will be able to tell you what is feasible in terms of the market and the level of AIP. Don’t hesitate to go in low, especially if the property has been hanging about for a while. Be prepared to haggle and not stretch yourself 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 a close fit! Once exchange of contracts has taken place, you are contractually committed to purchase. You will negotiate the completion date with the seller, typically a week or two from exchange of contracts. Your solicitor pays on the agreed date and gives your new property keys to you.
Costs to Factor In
In addition to your deposit and mortgage, factor in the following expenses:
- Stamp Duty: First-time buyers receive no Stamp Duty on houses under £250,000.
- Legal Fees: Typically £800-£1500.
- Mortgage Broker Fees: Some advisors charge a fee to arrange a mortgage for you, although you can negotiate it with the adviser at initial discussion stage.
- Valuation and Survey Fees: Between £200 and £700.
- Removal Costs: About £300-£600, depending on distance and amount.
Tips for Solo Home Buyers
- Budgeting: Provide for expenses every month aside from your mortgage (bills, council tax, insurance).
- Emergency Fund: Save at least 3 months of spending.
- Don’t Rush: Consider decisions thoroughly, this is an investment for the long term.
- Seek Assistance: Use professionals to guide you. You do not have to learn everything yourself.
Why Use Oportfolio Mortgages?
Buying a house on your own is a brave and worthy step. With the right knowledge, skills, and preparation, your fantasy can turn into a reality. With the right professionals in place and being well-informed at every stage, the process becomes workable and even enjoyable.
Searching for your own path to homeownership? Contact our experienced team at Oportfolio Mortgages today for useful, expert advice tailored to your situation.
