We’ve been helping clients buy Hackney homes for decades and have witnessed many clients confused about the entire process.
Our simple guide below explains in simple terms how to buy a property from step 1, saving for a deposit all the way to step 12, collecting your keys.
Check out our sellers guide if you are selling a property to explain the different steps when selling your property.
You’ll need to provide a minimum of 5% of the property’s value for a deposit, so if a property is worth £400,000 with a 95% mortgage you would put down £20,000 of your own money and borrow the remaining £380,000.
Most lenders however require a minimum of a 10% deposit and the larger deposit you have, typically the lower interest rates you will achieve.
In addition to deposit savings, you may need to pay for Stamp Duty Tax - link to see our stamp duty calculator - dependent on the value of purchase, conveyancing fees and survey costs.
There are various schemes run by the government which you can see here
https://www.gov.uk/affordable-home-ownership-schemes
The size of your deposit, your income and credit score will affect the amount a mortgage company will lend you. If you’re buying with someone else, their finances will also be considered.
The best way is to speak to a broker who looks at all your information and picks the best lender for your own individual circumstances. Just because one lender will offer you x amount, doesn’t mean another wouldn’t offer more or at a better rate.
Bigmove work with excellent brokers that come highly recommended and with vast experience of dealing with mortgages in Hackney, London and afield.
Request a free, no obligation mortgage appointment with our specialist here.
What kind of property and where do you want to live? You may have a list of requirements that you need, for example amount of bedrooms. You may have the area as the most important part of your search.
Research to see if you can get what you need, in the area you want for the deposit + mortgage from the previous step. If you can, great! If you can’t you can adjust your requirements or save for a larger deposit.
Visit our areas within Hackney page to see what each location offers and the Hackney amenities page to check out local schools, transport facilities, parks and more!
A mortgage agreement in principle (AIP) is a confirmation from a mortgage lender that they would, in principle, be willing to lend you a certain amount. It can also be known as a decision in principle (DIP) or mortgage promise.
Having an AIP will make you a more attractive buyer, as it shows the seller that you will be able to secure the amount of money you need to buy the property.
Request a free, no obligation mortgage appointment with our specialist here.
Register with estate agents in the areas you are looking. Registration is free and you won’t be obligated to make an offer just because you're registered with them. The best estate agents, like bigmove, often sell properties off market and may have properties to show you that aren’t online. Register with bigmove here.
It is also worth registering your details from sites like www.rightmove.co.uk where they will offer you most of the properties currently being marketed. Bigmove are a Rightmove featured agent.
Although you may spend plenty of time browsing Rightmove, Zoopla and other property sites, it’s also important to view properties in person.
Viewing homes in real life will give you a deeper understanding of their potential (or lack of it) and you’ll be able to gauge whether they give you that indescribable ‘feeling’ that you can't really get from a screen.
Looking at how much other, similar properties in the same neighbourhood have recently sold for will help you work out how much the property is worth. You can find this information on websites such as Zoopla and the Land Registry.
Once you’ve decided how much to offer, most estate agent will need you to put it in writing and will need documents such as ID, proof of deposit, your mortgage in principle and buying position.
Mention any points that stand in your favour - for example, if you’re a chain-free, a first-time buyer or under offer if selling.
You will need to provide your chosen conveyancer’s details to your estate agent so they can send the sales memorandum. This is a document that shows the purchase price, terms and details of the transaction and is sent to both yours and the seller’s solicitor.
Bigmove work with an amazing solicitor firm with a set conveyancer. We have used this individual conveyancer for many years. Request a conveyancer quote by clicking here. You can use our recommended solicitor when selling or buying a property in Hackney, London or further afield.
Conveyancing is the legal process that takes place after your offer is accepted. This includes but is not limited to carrying out searches, drawing up and checking contracts, dealing with the Land Registry and paying any stamp duty.
Once your offer has been accepted, you will need to submit your mortgage application. Speak to your broker(link) and discuss what type of mortgage suits you best – for example a fixed rate mortgage – how long you want to fix it for and the mortgage term ( usually around 25 years).
You can see how much your monthly payments would cost based on different interest rates, loan amounts and mortgage terms using our mortgage repayments calculator.
There are three main types of survey: a mortgage valuation; a homebuyer report and a building survey. The buyer will arrange and pay for a survey, so you will need to allow access for the surveyor. Bigmove can recommend surveying companies that we have used for many years (link).
If you are buying with a mortgage, the bank will normally insist on a mortgage valuation to establish that the property is good security for the loan. You will normally pay for a mortgage valuation, but typically this just looks at the price, not a detailed condition report.
A homebuyer report is ideal for more conventional residential property, built within the past 75 to 100 years. The report will include a detailed visual inspection of all aspects of the property that are available for inspection.
A building survey (also referred to as a full or structural survey) is suited to older properties, or properties which may have different forms of construction or undergone major changes. A detailed inspection of all visible areas of the property is undertaken.
The exchange of contracts happens when the buyer and seller’s legal representative’s swap signed contracts, and you pay a 10% deposit.
Before the exchange of contracts, you’ll need to have several things prepared in advance, such as a written mortgage offer, an agreed completion date and buildings insurance in place from the day of exchange (or from completion if you're buying a new-build.)
After you’ve exchanged contracts you can breathe a sigh of relief, as the agreement for you to buy the property is now legally binding. The chances of anything falling through from this moment are extremely low.
Your conveyancer will lodge an interest in the property, enabling you to pay the seller, and apply to the Land Registry to transfer the deeds to your name.
This is the final day and most exciting part of the process. The balance of the monies due to the seller is transferred via the banking system. Most importantly, this is the day you will need to move out and can collect the keys from your estate agent
This is intended to help as a guide and help you through the basic process. There are many other steps along the way but the team at Bigmove are always on hand to help ease your property journey.
The first step is to have a free property valuation from our experienced, friendly valuer.
Covering Dalston, De Beauvoir Town, Finsbury Park, Hackney, Hackney Central, Hackney Downs, Hackney Marshes, Hackney Wick, Haggerston, Homerton, Hoxton, Kingsland, Lea Bridge, London Fields, Lower Clapton, Manor House, Newington Green, Shacklewell, Shoreditch, South Hackney, Stamford Hill, Stoke Newington, Upper Clapton, West Hackney, East London, North London and Enfield.
