Buying your first home is a huge milestone that can often feel daunting and can be a little overwhelming. There are lots of aspects which can be confusing, so understanding the home-buying process can save both time and stress. This guide to buying your first home in Scotland will help to navigate your way through this exciting but also challenging journey.

Understand Your Finances – Scotland

Before considering even looking at property listings, it is essential to get your finances in order. To gain an understanding of what kind of property price you can afford, take a close look at your income, savings, and any debts that you may have. For first-time buyers in Scotland, there are two significant costs that you should consider: the price of the property and any additional costs that will be incurred. This could include fees, taxes and insurance.

Deposit: Typically, you will need a deposit of between 5% to 10% of the property price. This is dependent on the lender that will provide you with your mortgage and how much you have saved, although it is important to consider that the higher the deposit you are able to pay upfront means that you may obtain a better mortgage rate.

LBTT: This stands for Land and Building Transaction Tax. This tax applies to property purchases that are over the cost of £145,000 in usual circumstances, however, for first-time buyers, this is increased to £175,000. This means that effectively, first time buyers pay 0% tax on the value of the property up to £175,000, anything over and above this, you will pay tax on. This is an additional cost that you should consider depending on the price of the property that you would be interested in. LBTT costs can be calculated here.

Other Additional Costs: You should also consider the costs of solicitor’s fees and outlays, as well as buildings and contents insurance that will have to be put in place once the transaction has settled. Generally, you will have to budget for furniture and decor once you have moved into the property, including an allowance for removal, storage, or the hiring of any vehicles to assist in the move. Having an extra allowance for any unexpected issues that may pop up will also be important to consider.

Obtain a Mortgage Agreement in Principle

Once you have your budget, the next thing that you do is to obtain a mortgage agreement in principle. This may be achieved by approaching a lender directly, however, you may wish to speak to a mortgage advisor who can assist in planning your budget and speed up the process once you have had an offer accepted.

A Mortgage Agreement in Principle is provided to you by a lender. It is important to have this in place as when you wish to place an offer on a property, the solicitor acting in the sale will ask how you intend to fund the purchase. It is also beneficial as it gives you a clearer picture of your budget.

 

Find Your Property and Make an Offer – first-time buyer in Scotland

The next step is the exciting part, where you can now start officially looking and arranging viewings for properties. Once you have found a property, you will require a solicitor to formally note interest or submit written offers of your behalf. However, it is never too early to

speak to a solicitor when you wish to buy a property. Don’t worry about fees as you will often be provided with a quote before work is carried out. When you wish to submit an offer on a property, speak to your solicitor who will submit your offer. It is unlikely that you have your first offer accepted, so don’t become too disheartened if this is the case as there are always new properties on the market. When making an offer, this will sent in writing to the sellers solicitor and will include details such as the offer price, how long the offer is valid for, and any conditions, such as subject to a satisfactory survey. The seller will then respond to this with what is called a Qualified Acceptance where they may set out further changes. Depending on its content, you may accept the counter-offer or respond with further negotiations. This will continue until both parties agree on the terms of sale. Once missives are concluded, you have a legally binding contract.

 

Final Steps – Find A Solicitor Conveyancing

Once missives are concluded, you will have to finalise your mortgage and your solicitor will carry out all legal work on your behalf. Once the paperwork is completed and funds have been transferred, the next step is to collect the keys to your new home!

If you require our conveyancing team for buying or selling a property, contact our expert team at 0141 433 2626.