How to Buy a House in the UK: A Step-by-Step Guide for First-Time and Repeat Buyers
- Home Sorted
- Jan 1
- 5 min read
Buying a house is one of the biggest financial decisions you’ll ever make. Whether you’re a first-time buyer or moving home, understanding the process can help you avoid delays, reduce stress, and make confident decisions.
This guide explains how to buy a house in the UK, step by step - from preparing your finances to getting the keys.
1. Check Your Finances and Budget
Before you start browsing properties, it’s important to understand what you can realistically afford when buying a house in the UK.
You’ll need to consider:
Your income (employed, self-employed, contractor, or mixed)
Your monthly outgoings and existing credit commitments
Your credit history
Your deposit amount (usually at least 5–10% of the purchase price)
Additional buying costs such as solicitor’s fees, surveys, and Stamp Duty (if applicable)
To help with early planning, you can use our free monthly mortgage payment calculator. This mortgage calculator allows you to adjust the loan amount, interest rate, and mortgage term to estimate your monthly mortgage repayments.
Mortgage calculators are a helpful starting point, but they provide illustrative figures only. The actual interest rate you may qualify for depends on your individual circumstances, including:
Deposit size and loan-to-value (LTV)
Income structure
Credit history
Property type
Current lender criteria
To find out exactly which mortgage interest rate applies to your situation, you can speak with us directly. We’ll review your circumstances and explain the mortgage rates and options available to you before you proceed any further.
2. Get a Decision in Principle (DIP)
A Decision in Principle (DIP) — sometimes called an Agreement in Principle (AIP) — is a statement from a mortgage lender confirming how much they may be willing to lend you, subject to full checks.
Why a DIP matters:
It shows estate agents and sellers that you’re a serious buyer
It helps you focus your property search on realistic price ranges
It highlights any potential issues early
A DIP does not guarantee a mortgage, but it’s a crucial first step before making offers.
3. Start Your Property Search
Once you have a DIP, you can begin viewing properties.
Things to think about:
Location, transport links, and local amenities
Property type (flat, house, leasehold vs freehold)
Ongoing costs such as service charges or ground rent
Long-term suitability for your lifestyle or family
Take your time - this is about finding the right home, not just getting an offer accepted.
4. Make an Offer
When you find a property you like, you can make an offer through the estate agent.
Your offer may be stronger if you:
Have a DIP in place
Are flexible on completion dates
Are chain-free or have a buyer lined up
Offers can be accepted, rejected, or negotiated — this is normal.
5. Submit a Full Mortgage Application
Once your offer is accepted, the next step is submitting a full mortgage application.
At this stage, we will usually review the whole mortgage market again — even if your Decision in Principle (DIP) was obtained with a particular lender.
This is important because:
Mortgage lenders constantly compete on rates
Interest rates and criteria can change frequently
A lender that was competitive at DIP stage may no longer be the best option
Rather than automatically staying with the lender who issued your DIP, we reassess the market and, if a better rate or more suitable deal is available elsewhere, we will place your application with that lender instead.
This approach helps ensure:
You are not paying a higher rate than necessary
The mortgage fits your circumstances at the time of application
You benefit from the most competitive option available on the market
Once the lender is selected, they will:
Verify your income and documents
Carry out a full credit check
Arrange a valuation on the property
This is where careful review and timing can make a real difference to the outcome and the overall cost of your mortgage.
Does changing lender after a Decision in Principle affect my credit score?
In most cases, obtaining a Decision in Principle (DIP) involves either a soft credit check or a limited footprint, which does not affect your credit score.
If we later place your full mortgage application with a different lender, this does not usually cause any issues, provided applications are managed properly and unnecessary duplicate checks are avoided.
A full mortgage application will involve a hard credit search, but this is standard and expected once you proceed with a purchase. As part of our role, we aim to:
Minimise unnecessary credit searches
Time the full application carefully
Place the application with the most suitable lender first time
This helps protect your credit profile while ensuring you access the best available option.
Why can the mortgage rate change between DIP and full application?
A Decision in Principle is an initial, non-binding indication based on limited information and lender criteria at that moment in time. It does not guarantee a mortgage offer or a specific interest rate.
Between your DIP and submitting the full application:
Lenders may change their interest rates
New mortgage products may be released
Your circumstances or the property details may become clearer
Another lender may become more competitive for your profile
For this reason, at full application stage we reassess the market and recommend the most suitable mortgage available at that time, rather than automatically staying with the lender who issued the DIP.
This approach is consistent with the principles set by the Financial Conduct Authority (FCA), which requires mortgage advice to be based on the client’s current circumstances and the most appropriate product available, not on assumptions made earlier in the process.
6. Appoint a Solicitor and Arrange Surveys
You’ll need a solicitor or conveyancer to handle the legal side of the purchase, including:
Property searches
Reviewing contracts
Liaising with the seller’s solicitor
It’s also strongly recommended to arrange a property survey to identify any structural or maintenance issues before you commit.
7. Receive Your Mortgage Offer
If everything checks out, the lender will issue a formal mortgage offer.
This confirms:
The loan amount
The interest rate and term
Any special conditions
Once issued, your solicitor can proceed to exchange contracts.
8. Exchange Contracts and Complete
Exchange of contracts: the purchase becomes legally binding
Completion: funds are transferred, and you receive the keys
Congratulations — you’re now a homeowner 🎉
Do I Need a Mortgage Broker?
A mortgage broker can:
Search across multiple lenders (not just one bank)
Help with complex situations (self-employed, visa holders, credit history issues)
Manage paperwork and liaise with lenders and solicitors
Guide you through the process step by step
Always ensure your adviser is authorised and regulated by the Financial Conduct Authority (FCA).
Important FCA Disclaimer
Mortgage advice should be based on your individual circumstances. Rates, criteria, and lender requirements can change. A Decision in Principle does not guarantee a mortgage offer. Always seek regulated advice before proceeding.
Final Thoughts
Buying a house doesn’t have to feel overwhelming. With the right preparation, professional support, and clear guidance, the process can be smooth and straightforward.
If you’re planning to buy a home in the UK, start with your finances, get a Decision in Principle, and take each step with confidence. We are happy to help. Let's speak.
Comments