When buying a house, the "chain" refers to the sequence of linked property transactions that must occur in order for each sale and purchase to be successfully completed. Imagine a row of dominoes: each one needs to fall in the right order for the entire process to work smoothly.

Let's say you are selling your current home and buying a new one. You find a buyer for your current home who also needs to sell their property to afford your home. Meanwhile, the person selling you your new home might be in a similar situation, needing to buy another property to move into. Each person in this sequence relies on the sale and purchase of their respective properties to proceed without a hitch. This interconnected series of transactions forms what is known as a "property chain."

Being part of a chain can cause issues and potential delays. For example, if one transaction in the chain encounters a problem—such as a buyer pulling out, financing falling through, or legal issues—it can cause a ripple effect, delaying or even collapsing the entire chain. Because each link in the chain depends on the success of the rest of it, all parties need to coordinate their timing and be patient, as the process can take longer than initially expected.

However, being in a chain is quite common, and there are professionals like real estate agents, solicitors, and mortgage brokers who help manage and navigate these intricacies. They work to ensure that each link in the chain stays strong, communicating between all parties and addressing any issues that arise to keep the process moving forward.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.

Buying a new build home in the UK isn’t that different to the normal home buying process, though there are a couple of steps which make it a little bit different.

Once you’ve decided on a development, house type and the plot you like, you will reserve the property by paying a reservation fee, which is usually around £1,000. This fee holds the property for you while you sort out your finances and legal representation.

That means that your next stop will be to secure financing for the purchase. This involves getting a mortgage agreement in principle from a lender, which shows the developer that you have the means to finance the purchase. There are also government schemes like the First Homes Scheme or shared ownership that can assist with buying a new build home with a smaller deposit. You may also own a home you need to sell. It’s a good idea to do your research to choose the best agent in your area. 

When you engage a solicitor or conveyancer, make sure that they are experienced in new build purchases. Conveyancers handle the legal aspects of the transaction, including reviewing contracts and ensuring all paperwork is in order.

Once your finances are sorted and legal checks are completed, you exchange contracts with the developer. This involves signing a contract and paying a deposit, usually around 10% of the purchase price. Exchanging contracts legally binds both parties to the transaction. Generally, new build homes purchased off-plan will allow you to make custom choices. Typically, this will be for fixtures and fittings, flooring, kitchen cabinetry, as well as additional features that may be essential for your lifestyle such as extra electrical sockets or upgraded bathroom features. 

If the property is still under construction, you wait for its completion as per the developer's timeline. A good developer will provide updates on the progress of construction and an estimated completion date. 

You'll have the chance to appoint a snagger who will inspect the property for any issues or defects. You can usually arrange for this before completion. This is known as a snagging inspection, and it's essential to identify and report any problems to the developer promptly so that they can resolve them.

On the completion date, you finalise the purchase by paying the remaining balance to the developer, just as you would pay a homeowner for an existing property purchase. Once the payment is made, you receive the keys to your new home, and the property officially becomes yours.

After moving in, the developer typically provides a warranty period, such as the NHBC 10-year Warranty. The developer will also address any defects or issues with the property. This is usually referred to as the snagging period, and it's essential to report any problems promptly.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.

Stamp Duty, officially called Stamp Duty Land Tax (SDLT), is a tax you pay when you buy property or land in England and Northern Ireland. Scotland and Wales have similar taxes called Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT).

You have to pay Stamp Duty if you buy a property over a certain price and the amount that you will have to pay depends on how much the property costs overall. Different parts of the price are then taxed at different rates. For residential properties, you don’t pay any Stamp Duty on the first £250,000 of the property’s value. For non-residential properties, this threshold is £150,000. 

For example, if you buy a house for £300,000, you pay no tax on the first £250,000, and then 5% on the remaining £50,000. This means you would pay £2,500 in Stamp Duty. If you are buying a second home or a buy-to-let property, you pay an extra 3% on top of the usual rates.

Some situations are exempt from Stamp Duty or qualify for a discount. For instance, if you transfer a property because of a divorce, you don’t have to pay Stamp Duty. Charities and some social landlords can also get special discounts. First-time buyers get a better deal and don’t pay Stamp Duty on properties up to £425,000. However, if you’re making a joint purchase, all of you must count as first-time buyers to qualify. 

The buyer is responsible for paying Stamp Duty, which must be done within 14 days of buying the property. Usually, your solicitor or conveyancer will handle this for you and make sure it's paid to HM Revenue and Customs (HMRC). In Scotland and Wales, the taxes work similarly but have different rates and rules. 

Stamp Duty can be a big part of the cost when buying a property, so it’s important to understand how much you’ll need to pay. Getting advice from a financial advisor or solicitor can help you prepare for these costs and advise if you qualify for any exemptions or discounts.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.

A mortgage is a type of loan designed specifically for purchasing property or land, with the property serving as collateral for the loan. That means that if you default on repaying the loan, the lender can take ownership of your home.

A mortgage loan has two parts: the principal, which is the amount borrowed, and the interest, which is the cost of borrowing the principal. UK mortgages can be repaid in different ways. The most common of these is a repayment mortgage, where monthly payments repay both interest and part of the principal, gradually reducing the loan amount and increasing the homeowner’s equity – the amount of the home they own – over time. Alternatively, with an interest-only mortgage, the monthly payments cover only the interest, and the principal is repaid in full at the end of the term.

Mortgage terms typically range from 25 to 35 years, with shorter terms resulting in higher monthly payments but less interest paid overall. The length of mortgage available to you may vary depending on your age, and specifically how much longer you will be of working age. 

Interest rates on mortgages can be fixed, where the rate remains the same for a specified period, or variable, where the rate can change based on the lender's standard variable rate (SVR) or other benchmarks. Tracker mortgages, for example, follow the Bank of England base rate plus a set percentage.

Buyers usually need to provide a deposit, typically between 5% and 20% of the property's value, with higher deposits often securing better mortgage rates. This is because you’re paying for more equity in your home upfront and requiring a smaller loan amount.

There are additional costs involved in purchasing a UK home, including Stamp Duty Land Tax (SDLT) on properties over a certain value, valuation and survey fees to assess the property's condition, legal fees for conveyancing solicitors, and mortgage arrangement fees charged by the lender.

The process of obtaining a mortgage involves several steps: an initial financial assessment by the lender, an approval in principle, a detailed full application, a property valuation, and finally, a formal mortgage offer. Upon acceptance, the funds are released to complete the purchase.

You can read more about the full mortgage process here.

Various mortgage types cater to different needs, such as first-time buyer mortgages with incentives or buy-to-let mortgages for rental properties. Mortgages in the UK are regulated by the Financial Conduct Authority (FCA), ensuring fair treatment and transparency for borrowers. Consulting a mortgage broker can help navigate these complexities and find the best options available.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.

In the UK, to be considered a first-time buyer, you must meet several criteria.

Put simply, a first-time buyer is a person who is purchasing their first property and has never owned a residential property before, either in the UK or abroad. 

This means that you must not have previously owned any residential property, including properties that were inherited or gifted. If you have ever owned a property, even if you did not purchase it, you cannot be considered a first-time buyer.

It is also important to note that if you are buying a property with someone else, both of you must be first-time buyers to qualify for first-time buyer benefits, such as the higher Stamp Duty threshold. If one person has owned a property before, either in the UK or elsewhere, and the other has not, you will not qualify for this.

First-time buyers can benefit from various government schemes such as the Help to Buy scheme and shared ownership programs. In England and Northern Ireland, first-time buyers purchasing a property worth up to £425,000 do not have to pay Stamp Duty on the first £425,000. Additionally, the property you are buying must be a residential property intended for you to live in. Commercial properties or buy-to-let investments do not qualify.

Being classified as a first-time buyer can offer significant financial benefits, such as reduced or exempt Stamp Duty and access to government assistance schemes, making it easier to get onto the property ladder. 

It’s important to confirm your status with a solicitor or financial advisor when planning your property purchase to ensure you receive all eligible benefits.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.