So how long does it take to be a house in the UK? Looking at the fastest possible timelines, if you buy with cash at auction it can go through within a month, and mortgaged without a chain can go through in 6-8 weeks. However, in chains and with mortgage complications it can also take longer. In addition there have been further delays since Covid.
Steps for buying a house with Mortgage
Looking for a property
This stage it is reliant on several very subjective aspects such as the health of your local property market, how quickly you want to move, and especially how particular you are about what you’re searching for, therefore can take up to around 10 weeks.
Getting a mortgage
You will need to hire a solicitor to handle the legal aspects of the home purchase at this point. Even though the lender will arrange for their own property appraisal, it’s always a good idea to employ a surveyor to do a more thorough property survey, since this can assist avoid potentially costly difficulties down the road.
Mortgage applications might be delayed for a variety of reasons, so be sure you’re prepared to supply any documentation or information the lender may request. Make sure you have all the necessary pay stubs, bank statements, and other documents to prove your income. Before applying, it’s also a good idea to check your credit report.
Whether you apply for a mortgage directly with a lender or through a mortgage broker, it usually takes a month from the time you submit your application to obtaining a formal mortgage offer.
The legal components of the process are brought to the fore at this point. Both you and the seller will sign legally enforceable contracts confirming to the transfer of property ownership, which will then be exchanged between your solicitor and theirs. You’ll also pick a date for the project’s completion.
During this time, your lawyer will communicate with the Land Registry, the local council, and the seller to conduct “enquiries and searches” about the property’s status, ownership, planning permissions, and land borders, among other things. It usually takes a month to complete the searches and exchange contracts.
Completing the purchase
The deposit and any unpaid solicitors’ costs will be paid in the final stages of purchasing your new home. The mortgage will be finalised (and any arrangement fees will be paid), and a Direct Debit will be established to collect your monthly mortgage payments.
The time between the exchange of contracts and the exchange of keys is normally four weeks, however if both the buyer and seller agree, a different timeline can apply. Your new mortgage will begin on the completion date, and you will be able to move into your new house.
Steps for buying a house with cash
The process of buying a house with cash is like buying a house with a mortgage, but there will be less obstacles. This usually speeds up the procedure because you won’t have to apply for amortgage, cutting out time and fees.
Obtain proof from bank
If you’re making a cash offer and want to be competitive, having a letter from the bank to confirm that you have the cash on hand is a good idea.
Making an offer
After finding a home you love, the next step is making an offer. In a seller’s market, offering cash for a house purchase makes you more competitive because the sale can be completed much faster.
Given the fact that you won’t have to deal with a lender, you’ll still have to go through the closing and title process to guarantee the home’s title is clean and the deal goes well. Your settlement agent will be able to guide you in several ways and they’ll act as a neutral third party for the purpose of retaining, accounting for, and transferring cash, as well as assisting with title searches and transfers.
Even if you’re not required to cover your home since you’re buying it outright, getting homeowner’s insurance is still a good idea. You’re putting your hard-earned money into an asset worth hundreds of thousands of pounds, so you want to make sure it’s protected in the event of a disaster. Ask your insurance agent if you’re unsure what amount of homeowner’s insurance you should get.
Securing the check/Final Steps
It’s time to get ready to pay for the house now that you’ve inspected and evaluated it. After deducting the earnest money you’ve already put down, get a check for the balance outstanding. Make a cashier’s check or arrange for a wire transfer with the amounts you’ve gathered. You’ll walk through the house one last time just before it closes to make sure it’s in the condition you expect. Verify that the residence is spotless and that everything is in working order.
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