First-Time Buyer Guide: Step-by-Step to Buying a Home in Liverpool
Step 1: Understanding Your Budget
Your deposit – Lenders typically require 5-10% of the property price. Loan-to-Value Ratio (LTV) – The lower your mortgage compared to the home’s value, the better your loan terms. Affordability – Lenders allow borrowing up to 4.5 times your annual income, depending on debts and expenses.
Tip: Speak with a mortgage broker in Liverpool to find the best deals.
Step 2: Budgeting for Extra Costs
Stamp Duty – First-time buyers pay zero stamp duty on homes up to £300,000, but 5% applies above this. Legal Fees – Solicitor costs range from £800–£2,000 for property checks. Home Surveys – Ensure no structural issues—survey costs £300–£1,500. Insurance & Moving Costs – Budget for furniture, building insurance, and removals.
Step 3: Finding Your Dream Home
Register with estate agents to get early access to new listings. Set up alerts on Rightmove & Zoopla for homes in your price range. View properties quickly—the best homes sell fast.
Tip: Research sold prices in your area to avoid overpaying.
Step 4: Securing a Mortgage Agreement
Get a Mortgage Agreement in Principle (AIP) before making an offer—this shows you are financially prepared. Don’t feel pressured to use an estate agent’s broker—you can shop around for better mortgage deals.
Step 5: Making an Offer
Offer below asking price if the home has been listed for a while. Check competition—if other buyers are interested, you may need a higher offer. Ensure the estate agent removes the listing once your offer is accepted.
Step 6: Applying for a Mortgage
Proof of ID & Address – Passport + utility bill. Income Verification – Bank statements & payslips. Proof of Deposit – Savings evidence. Credit Check & Property Valuation – Done by the lender.
Tip: If you are self-employed, you will need tax returns from the past 2–3 years.
Step 7: Understanding Mortgage Fees
Arrangement Fees – £0–£2,500 (lower fees often mean higher interest rates). Broker Fees – Some charge £500–£1,000, but many work commission-free. Valuation Fees – £100–£400 (some lenders offer free valuations).
Step 8: Conveyancing & Legal Process
Your solicitor checks for legal issues such as restrictions and access rights. Local authority searches reveal potential planning concerns. Timeframe – Conveyancing usually takes 12–16 weeks, so respond quickly to solicitor requests.
Step 9: Completion & Moving In
Your solicitor transfers funds and finalises the purchase. You receive the keys to your new home.
Tip: Budget for home insurance (£500–£1,000 per year) and maintenance costs.
Need Help Buying Your First Home in Liverpool?
Visit us at: 34 Tabley St, Liverpool L1 8DB Call us: 0151 291 1324 Email us: [email protected]
Ready to start your journey? Get in touch today.
