buying your first home

Buying your first home is a big deal, but the process is quite straightforward.
northern rock can help you every step of the way.

  1. The first thing you should do is find out how much you can borrow. Based on your salary, deposit, and monthly loan commitments we will be able to give you an idea of how much you would be able to borrow from us.

  2. Now you need to work out which is the right mortgage for you. To understand the different types of mortgage we offer and to help you to choose the most suitable mortgage product, please view our current mortgage rates.

  3. You’ll then need to request a Key Facts Illustration which details in full the mortgage options you’ve selected.

    As northern rock is regulated by the Financial Services Authority, you must have a Key Facts Illustration before applying for your mortgage.

  4. Then ask us for an agreement in principle. This is the way to find out if in principle we’ll give you a mortgage and confirm how much we’ll lend you.

  5. Next, find a place. Once you’ve got an agreement in principle, you’ll know the maximum price you can afford to pay for your new home.

  6. Now you can make an offer. Contact the seller’s estate agent, find out if anyone else is interested in it and decide how much you would like to offer for the property. If your offer’s accepted, it will be ‘subject to contract’. This means that you and the seller have agreed in principle to go ahead but neither of you are legally bound.

  7. Once the seller has accepted your offer for the property, and you have received a Key Facts Illustration for the mortgage deal you have selected you can apply for your mortgage. You can either contact us on 0845 601 1581, or visit your nearest branch.

  8. If you don’t already have a solicitor, we can recommend one to you. Ask the solicitor for a breakdown of costs before you engage him or her.

  9. Part of the process of getting a mortgage involves us arranging a valuation report which you will need to pay for. This is to make sure the property is worth the amount you want to borrow. The valuation that we’ll arrange is basic and may not highlight potential problems that you may have with the property. You should consider carrying out a more detailed survey which we can help arrange for you. See our guide to valuations.

  10. Once you’ve applied, and we’ve made all the relevant checks, which will include confirming that you can afford to repay the loan applied for, we can send your Offer of Loan to you. You will also need to apply for any investment products if you have selected an interest only mortgage at this stage.

  11. Your solicitor will check the legal documents relating to the ownership and use of the property. He or she will also make local authority and other searches to check if there are any matters which may affect the value of the property.

  12. Once your solicitor has completed all the checks, you and your seller are ready to exchange contracts. This means signing your identical copies of the contract for sale. Then the solicitors exchange them. This is when you pay your deposit through your solicitor. At this point, both of you and the seller are legally bound to proceed with the transaction. If you pull out after exchanging contracts, the seller can keep your deposit.

  13. However, before you can complete (in other words actually take ownership of the property) you’ll need to sign the mortgage deed and the document that transfers the property over to you.

    Remember to make sure that any Buildings and Contents insurance are in place for the completion date.

  14. It’s yours. Collect the keys and move in.

This is a guide only and is relevant to buying a residential home in England and Wales.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

© Northern Rock plc. 2008