The best way to buy a house in 2025
Find out everything you need to know about the process of buying a house.
Buying a house is one of the most significant financial decisions you’ll ever make. Whether you’re a first-time buyer or looking to move up the property ladder, understanding the home buying process can help you make informed decisions and avoid potential pitfalls. This comprehensive guide will walk you through each step, from deciding if buying a home is right for you to finalising the purchase and moving in. By the end, you’ll have a clear roadmap to navigate the often complex journey of buying a house in 2025.
Who is this guide for?
This guide is designed for anyone looking to buy a home, whether you’re a first-time buyer, someone looking to upgrade to a larger property, or even an investor seeking to expand your portfolio. If you’re feeling overwhelmed by the home buying process or simply want to ensure you’re making the best decisions, this guide is for you. We’ll cover everything from saving for a deposit to understanding mortgage deals, working with estate agents, and completing your purchase. No matter where you are in your home buying journey, you’ll find valuable insights and practical advice to help you along the way.
Pros
Security
Homeownership provides a sense of stability and security that renting cannot always offer. As a homeowner, you have control over your living situation and aren’t subject to sudden rent increases or the risk of being asked to move by a landlord. Fixed-rate mortgages, in particular, offer predictable monthly payments, making it easier to plan your finances.
Owning a home also fosters a stronger sense of belonging and connection to the local community, contributing to overall well-being. This stability is especially beneficial for families, providing a consistent environment for children to grow up in.
Financial growth
Owning a home is a long-term investment that can contribute to financial growth. Property values in the UK have historically risen over time, offering the potential for capital appreciation. This means that as the property increases in value, you could sell it for a profit in the future.
Additionally, each monthly mortgage payment builds equity in your home, effectively turning a portion of your housing costs into savings. Unlike renting, where payments go to a landlord, homeownership helps you accumulate wealth over time, providing financial security and a valuable asset that can be leveraged for future goals, such as retirement or funding education.
Creative freedom
One key advantage of owning a home is the freedom to personalise your space. Unlike renting, where changes are often limited by the landlord’s rules, homeowners can renovate, redecorate, or even make structural changes to suit their preferences and lifestyle.
Whether it’s designing a dream kitchen, creating a home office, or landscaping a garden, homeownership allows you to create a living environment that reflects your personality and needs. This flexibility not only enhances your quality of life but can also add value to the property, further benefiting your financial position over time.
Cons
Risk
Homeownership comes with various risks that can impact your financial security. One major risk is market volatility—property values can decrease, potentially leading to negative equity where your mortgage debt exceeds the home’s value. Additionally, unforeseen personal circumstances, such as job loss, illness, or a change in income, could affect your ability to keep up with mortgage payments, increasing the risk of repossession.
Owning a home also ties you to a specific location, which can limit flexibility if you need to relocate quickly for work or personal reasons. These risks highlight the importance of thorough planning and maintaining financial stability when purchasing a home.
Added costs
Buying a home involves several associated costs beyond the property’s purchase price. These include a deposit, typically 5-20% of the property’s value, and stamp duty land tax (if applicable) based on the property’s price and your buyer status (e.g., first-time buyer or homeowner). You’ll also need to cover legal conveyancing fees, which can range from £800 to £1,500, and mortgage arrangement fees, which vary depending on the lender and product.
Additionally, there may be costs for a survey to assess the property’s condition, removal expenses for moving your belongings, and building insurance, which is a mortgage requirement. For leasehold properties, you may face ongoing ground rent and service charges. Budgeting for these costs is essential to avoid financial surprises during the home-buying process.
Mortgage rates
The mortgage rate you secure significantly affects the overall cost of buying a home. While larger deposits can help secure lower rates, fluctuating interest rates pose a challenge, particularly for those on variable-rate mortgages. Rising rates can lead to increased monthly payments, making it harder to budget effectively.
Additionally, your credit score and financial profile play a crucial role in determining the rates available to you. Poor credit or a low deposit may result in higher interest rates, increasing the overall cost of your mortgage over time. Being aware of these factors and shopping around for the best rates is essential to minimise long-term financial burdens.
Homebuying stages
The bigger your deposit, the better your chances of securing a mortgage with a lower interest rate. Additionally, it’s essential to understand the minimum credit score requirements for different mortgage types, as these can affect both your eligibility and the rates offered. Your deposit size is typically calculated as a percentage of the property’s price.
Here’s how to calculate and plan for your deposit:
Step 1: Use a mortgage calculator to estimate how much you can borrow based on your income and outgoings.
Step 2: Determine the deposit size you’ll need as a percentage of your ideal property’s cost.
Step 3: Create a savings plan to reach your target deposit.
Buying a home comes with various additional expenses beyond the purchase price. These can be divided into two categories:
Mandatory Costs:
Solicitor fees
Survey costs
Mortgage arrangement fees
Stamp duty
Land registry fees
Optional or Situational Costs:
Removals
Home improvements
(e.g., painting, curtains, furniture)
Planning for these upfront costs ensures there are no financial surprises during the process.
Before viewing properties or making offers, secure a mortgage in principle. This document demonstrates to estate agents and sellers that you’re a serious buyer and that a lender is willing to provide the required loan amount.
Where to obtain a mortgage in principle:
Directly from your bank or lender
Through a mortgage broker who can compare offers
You’ve probably started this part already, but now you can start thinking about the property you want and the area you want to live in. It’s worth considering things like:
If the property is in the catchment area of a good school if you have children
What the transport links are like, especially if you don’t drive
What amenities are nearby, like shops or parks
What the crime rates are like
When you know what area you want to buy in and the type of property you want, start searching online or register your interest with local estate agents.
When you have found a property you’re interested in, arrange a viewing with the estate agent. Here are some property viewing tips to consider:
Drive by the property first: This can give you a better impression of the property and the neighbourhood. It might be enough to convince you the property isn’t right and save you from a wasted viewing.
Arrive early: Try to get to the viewing 10 minutes early to get a better feel for the street and neighbourhood before the estate agent arrives.
Take someone with you: Try not to attend a viewing alone - it’s always good to get a second opinion and have someone else who might spot things you miss.
Be prepared: Make a list of any questions you have about the property or any extra information you want. Don’t be afraid to be thorough and check things like the plumbing, loft, and fixtures.
Check for damp: Look for any signs of dampness, especially in older properties. Use your nose and see if you can smell damp in any room.
Arrange a second viewing: If you like the property, always go back again and take someone different along if you can. Try going at a different time of day to see if the neighbourhood changes, e.g. is it busier after working hours?
If possible, arranging a few viewings on the same day is a good idea. This makes it easier to directly compare your options and highlight your favourite.
When you’ve found your perfect property, it’s time to put an offer in. You can expect to do some haggling, so try not to go in with your top offer straight away.
That way, if your offer is declined, you can go back with a higher figure. Remember that you will probably be competing with other buyers, so try to make your offer stand out.
If you’re a cash buyer with no chain, make sure the estate agent is aware of this, as it can make your offer more attractive.
Always make your offer through the estate agent, who will relay it to the buyers. If your offer is accepted, be aware that the purchase isn’t yet guaranteed, and the seller could still pull out any time before the exchange of contracts.
When you’ve had an offer accepted, it’s time to start looking for a mortgage. If you got your mortgage in principle with a lender, you could apply for your mortgage with them, but you don’t have to.
It’s a good idea to compare mortgage deals to help you find the right one. Alternatively, speak to one of our expert mortgage advisors, who can talk you through your options and help guide you through the application process.
To complete your home purchase, you need to instruct a solicitor or conveyancer. Your mortgage provider may recommend a firm you can use, or you can choose your own.
The solicitor or conveyancer will carry out searches with the local authority to make sure there are no fundamental problems with the property. They can also communicate with the lender and seller on your behalf.
Many mortgage brokers, including Better.co.uk, will be able to arrange a conveyancer for you.
Your lender will likely do a basic survey to assess the property’s value; however, this won’t highlight any problems you need to be aware of.
That’s why it’s a good idea to get a comprehensive survey yourself, which can identify anything like damp or subsidence.
If the survey comes back with any major issues, you can withdraw your offer, renegotiate the purchase price, or ask the seller to remedy the problem or cover the cost before the sale can continue.
Once your survey is complete, you can start to negotiate any final details that need to be agreed upon. This could be arranging the completion date or if the seller is leaving any items behind, like the white goods.
Your solicitor will put the terms of the transfer in writing. They'll then tell the land registry they’re transferring the property’s ownership to you.
They’ll also speak with the mortgage lender to ensure the mortgage is ready for completion. Before exchanging contracts, you must send the deposit to your solicitors for them to hold.
The move-in date and the time between exchanging contracts and completion can take from a day to a few months.
This depends on what stage the people buying your property (if you’re selling) and moving out of your new property are at. This is often referred to as the ‘chain’.
A few days before the completion date, your solicitors will arrange for your mortgage lender to release the money to them.
They will then send the mortgage funds and your deposit money to the seller’s solicitors, who will give them the title deeds to the property and proof that the seller’s mortgage has been paid off.
At this point, the property is legally yours, and you can start planning to move in. On the agreed completion date, you can arrange to pick up the keys from the estate agent and start moving your belongings into your new home.
The cost of buying a house
Buying a home comes with many additional costs and fees you must budget for. Here’s a breakdown of all the costs you should be aware of:
Solicitors fees
The fees solicitors charge can range from £750 to £1,500, depending on where in the country you’re buying and how much work is involved.
You also need to include disbursements, which can make the cost much higher. Common disbursements include:
Bankruptcy search - £2 to £4 per person taking out the mortgage
Land Registry office copies - £4 to £8
Electronic ID verification - £2 to £18 per person taking out the mortgage
Local authority searches - £100 to £200
Water and drainage search - £30 to £40
Environmental search - £30 to £35
Telegraphic transfer fee - £25 to £45
Mortgage handling fee - £60 to £80
HMLR final search - £3 to £7
Land Registry Charge - £20 to £910
You'll need to pay the fees to your solicitor, and it covers handling all the legal parts of the completion. The price also includes their time, registrations, and costs from start to finish.
You usually have to pay for local searches upfront. You'll pay this throughout the process as and when you're charged.
Mortgage fees
There are several fees you could face when taking out your mortgage. These include:
Arrangement fee: This is sometimes called a ‘product fee’ and is what you pay the lender for setting up the mortgage. These can cost around £1,000 but vary depending on the product and the lender.
Application fee: Also known as a ‘booking fee’, this is charged while your application goes through. It won’t be refunded if you choose not to take the mortgage out.
Valuation fee: This covers the cost of the lender’s survey on the property you want to buy. The cost of the fee varies, and some lenders do not charge a valuation fee at all.
Once you have started paying your mortgage, there are other charges you could face, like:
Missed payment fees: Some lenders might charge a fee if your account is in arrears. The penalty depends on each lender’s rules.
Early repayment charges: This might not always apply. Check the rules with each mortgage provider, especially if you want to make early repayments. Often, the charges range from 1 to 5% of the value of the early repayment.
Exit or closure fees: This is a fee you may need to pay your lender when you pay off your mortgage, even if you’re not repaying it early. This administration fee to pay for the closure of the mortgage can cost between £75 and £300.
Stamp duty
Stamp Duty Land Tax (SDLT) is a tax you may need to pay when purchasing property in England or Northern Ireland.
Current Rates (Until 31 March 2025):
Standard Buyers:
0% on properties up to £250,000
5% on the portion between £250,001 and £925,000
10% on the portion between £925,001 and £1.5 million
12% on any amount above £1.5 million
First-Time Buyers:
0% on properties up to £425,000
5% on the portion between £425,001 and £625,000
No relief on properties over £625,000
Upcoming Changes (Effective 1 April 2025):
Standard Buyers:
0% on properties up to £125,000
2% on the portion between £125,001 and £250,000
5% on the portion between £250,001 and £925,000
10% on the portion between £925,001 and £1.5 million
12% on any amount above £1.5 million
First-Time Buyers:
0% on properties up to £300,000
5% on the portion between £300,001 and £500,000
No relief on properties over £500,000
These changes mean that first-time buyers purchasing properties between £300,001 and £425,000 will face SDLT charges starting 1 April 2025.
Buying a house FAQs
The full process can take around six months, from viewing properties to completion. However, this can vary depending on your circumstances and the circumstances of the person you’re buying from.
How long it takes can depend on things like the size of the property chain, any issues that arise, and the state of your finances.
It's possible to buy a home in two to three months if:
you're a first-time buyer
your finances and documents are all in order
you're not in a chain
The property chain is the group of house purchases that are connected to your purchase.
If you’re a first-time buyer, you’re at the start of the chain, but you might need to wait for the seller to buy their next property before your purchase can complete.
This is an example of being in a chain, and the end of the chain will be somebody selling their home but not buying another, e.g. a retiree moving in with family.
The longer the chain, the longer it might take for your house purchase to complete. Being chain-free is attractive to sellers and can give you a better chance of having your offer accepted.
Gazumping is when another buyer outbids you on the home you’re buying - even after the lender has accepted your offer. It means you miss out on the property even though you might have spent money on things like surveys and searches.
It usually happens if the seller receives a higher offer or a new buyer can complete the purchase faster.
Gazumping is legal in England, and until you sign contracts, there is no legal agreement between you and the seller.
Contracts are not exchanged until late in the home-buying process. Homes are often on the market for weeks while they’re ‘Under Offer (UO)’ or ‘Sold Subject to Contract’ (STC).
At this point, it’s legal for someone else to make a higher offer.
It is possible to buy with no deposit, but you will need a 100% LTV mortgage, which are very rare. In shared ownership schemes, you can purchase a portion of the property while you pay rent on the remaining stake. Few lenders offer 0% deposit mortgages, so you may need to save a deposit to get onto the property ladder. 95% LTV mortgages are more common, but to get a wider choice of products, you need to look at 90% LTV or even 80% LTV mortgages.
It is possible to get a mortgage if you have a low credit score, but your options are limited.
Lenders will check your credit rating as part of the application process, and if your score is low, they may reject you, ask you to provide a larger deposit, or offer you a higher interest rate.
If you’re worried about your credit score, check it and take steps to improve it before you start your application.
Speaking to one of our expert mortgage advisors is a good way to find a mortgage if you have poor credit. They can talk you through your situation and help you find lenders most likely to lend to you.
The process for buying a new build property is broadly the same as any other home purchase.
You may need to put down a larger deposit because some lenders don’t offer high LTV mortgages like 90% or 95% for newly built properties.
One advantage of buying a new build is that it can have a much smaller chain because you’re buying from a developer. If you’re a first-time buyer, there will only be you and the developer in the chain, which means the process can be relatively quick.
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Important info & marketing claims
You may have to pay an early repayment charge to your existing lender if you remortgage. Your savings will depend on personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
*The savings figure of £656 is based on Better.co.uk remortgage customers in April 2024. Read more on our marketing claims page.
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For buy-to-let landlords, there's no guarantee that it will be possible to arrange continuous letting of a property, nor that rental income will be sufficient to meet the cost of the mortgage.
