Buyer's FAQs

Most mortgage lenders have online calculators to determine how much you can borrow. The amount they are willing to lend depends on your credit report, spending habits and income. A mortgage lender will also consider your ‘loan-to-value’ ratio — the percentage of the property’s price compared to the deposit you can afford. Alternatively, you can conduct this process with a mortgage broker who can scour the mortgage markets for a product which suits you best.

The amount of Stamp Duty Land Tax (SDLT) you must pay depends on the purchase price. Stamp duty rates range between 2 and 12% and are proportionate to the cost of your home. However, suppose you are a first-time buyer buying a property under £300,000 or buying a property under £125,000. In that case, you don’t pay any stamp duty.

Here is a table of how much stamp duty you can expect to pay on homes valued over £125,000:

• Purchase price band: £125,001 to £250,000 — 2%
• Purchase price band: £250,001 to £925,000 — 5%
• Purchase price band: £925,001 to £1.5 million — 10%
• Purchase price band: over £1.5 million — 12%

It’s vital to remember that stamp duty is calculated on the part of the property price in each band. There are other exemptions that your estate agent can inform you about.

You sign the purchase agreement towards the end of the sale process. First, the seller’s solicitor will draft the contract and then your solicitor will confirm all the details and perform searches. During the sale process, you will receive the mortgage offer.

The exchange of contracts is the part of the buying and selling process where you and the seller sign the contracts. At this point, the sale is legally binding and you must pay the deposit. The completion date is when you get the keys and can move into your home.

You can arrange to get the keys after the seller’s solicitor confirms receipt of funds. Your estate agent will verify where and when you collect the keys to your new home.