Equity Share
Buying a house or flat
How do you buy a property?
It's quite simple really, as long as you follow a few rules.
1. Find a property that meets your needs and is in your price range.
2. Check you have enough cash to pay a 10% deposit, or if not, at least 5% plus all the costs of purchase.
3. Speak to a mortgage adviser and get a mortgage offer in principle. This is known as a 'Key Facts Illustration' or KFI. The mortgage will be for either 90% of the purchase price or something less (typically 75%). 90% mortgages are expensive and can catch you out if you have any blemish on your credit record.
4. Assuming you go for a 75% mortgage, the next step is to check your eligibility for equityshare to pay the remaining 15% (or 20%). You can do this by trying the Calculator or by visiting the Contact Us page. If we approve your application in principle, we will give you an illustration just like a mortgage adviser.
5. Once all your ducks are in a row, you can make an offer for the property. Bear in mind that as a first time buyer, you have a distinct advantage in that you do not have a property to sell. Because of this, the vendor may be happy to accept a lower offer, just in order to achieve a sale.
6. If your offer is accepted (be prepared for a bit of horse trading), both parties will appoint solicitors and it will get serious. Remember to ask a quote for your legal fees before you commit.
7. With a bit of luck, the mortgage valuation will come out at the price you have agreed; if not, you may have to drop your price. Once your (a) mortgage offer, and (b) offer of equityshare funding, have come through the post, you are ready to exchange contracts and you are now 28 days away from moving into the property.
8. Have fun!