Who is a guarantor and what's their role?

A guarantor is someone who would be liable for someone else's repayments if they should stop paying them. Basically, they would then take responsibility for making those payments or repayments and guarantee your landlord or lender gets the money they're owed.

In the past, it was common that guarantors were mainly needed by renters as part of tenancy agreements when renting somewhere to live. This would give landlord some comfort in the form of a guarantee that they weren't at risk of missing out on any rent they were due if their tenant didn't pay it, a bit like where they ask for rent in advance.

However, these days, it's becoming increasingly common that guarantors are also needed to guarantee financial products where there is lending of money (or 'credit') involved. A prime example of where you might need a guarantor for loans is for a product like a mortgage, where you borrow money from a lender (like a bank) to buy a property. Alternatively, it could also come in the form of a traditional loan.

Again having a guarantor in place reassures your lender that there is someone who can guarantee that they will make the repayments that they've lent back over time. In this article, we'll make references to what it means to be a guarantor for renting, but also for where there is credit involved.

It's worth saying that if you never have any issues with either rent payments or credit repayments, then guarantors are not put in a position where they have to pay any money on your behalf. They can just be there in the background, as peace of mind, for your lender or landlord.

It can be very normal for guarantors to have a close relationship with the person they're acting as a guarantor for. Many people choose parents or family members who are willing to, and can, be of help them to be their guarantor. But equally, you could choose a friend or family friend, as legally speaking, anyone you know can be a guarantor (usually so long as they are older than 18).

While you could choose from anyone in theory, there are a couple of things that you may want to think about before asking someone to be your guarantor:

While this isn't a necessity in order to be a guarantor, you may find that landlords in particular would prefer them to live in the UK. This is in case things don't go as planned while you're renting from them.

For example, if both you and your guarantor fail (or refuse) to pay any rent that is due to your landlord, they may be able to take legal action against you. And doing this where you and your guarantor are based in the UK is much more straightforward for the landlord.

Whoever has asked you to have a guarantor, such as a lender, will want to make sure the amount they're lending you is in safe hands. And that they aren't at risk of not getting the money back over time.

So, it's important that your guarantor is someone who has a good credit history, as can their ability to meet any financial commitments they'd have to make if you ever stopped repaying your loan. For example, they have a good income or enough assets, like a property of their own, to cover your debt if worst comes to worst.

Becoming a guarantor comes with responsibilities, but it could also come with consequences for them if you fail to pack back your lender, or pay your landlord. They may find their own credit score is negatively affected , which could harm their own chances of getting any credit in future. As we saw before, in particular circumstances, they might also find themselves having legal action against them if you failed to pay your rent and they failed to pay your liabilities as guarantor.

Making sure both you and your guarantor are aware of the responsibilities and potential consequences could be an important step before you agree to them being your guarantor. Let's look at what they are.

A guarantor's rights and responsibilities

While the guarantor is helping you to secure credit, or your tenancy agreement, it's important to note that they have no claim to the property that's being rented or purchased (unless you have come to a separate arrangement with them). Their involvement as a rent guarantor usually only extends to having to pay any rent or debt due on your behalf (should this ever be called for).

In the case of being a rent guarantor as part of a tenancy agreement, this can become important where you are living with others in a shared property (a 'joint tenancy'). Where this applies, your guarantor might want to keep an eye out for any mention of 'joint liability'.

If this does apply to them, then they could find that they are liable for the rent of all the parties that are renting a single property. So they aren't just liable for any missed rent payments you make, but also for those you share your home with. If they miss their rent payments, and you don't, your guarantor could still be the one who has to pay.

Your rent guarantor would be unlikely to be liable for any responsibilities that they aren't made aware of in advance of a guarantor agreement being signed (we'll come on to this shortly). This is often the reason for having the guarantor agreement in place, and any other accompanying paperwork that might relate to your tenancy (such as a tenancy agreement), or in relation to the money you're borrowing from a lender. Just so they're aware of their role and responsibilities before you enter into the agreement you're looking to secure.

Whether it's for a financial product with credit involved, or as part of a tenancy agreement, you'll typically find that your guarantor will need to sign what's known as a 'guarantor agreement'. This usually sets out when the agreement will begin and end and what they are liable for should you not meet your repayments, or pay your rent.

It's important that your guarantor is comfortable with the terms of the agreement before they sign it. When they are happy, the signing of the agreement will usually have to be 'witnessed' by someone. The witness should be independent to you and your guarantor (so not a family member, partner or friend) and have no financial or personal interest in the agreement that's being signed, so an ideal choice might be a solicitor if you have one already.

Once the agreement that your guarantor signs has been witnessed and returned to your lender, or landlord, then you're well on your way towards your new home as tenant or as an owner.

So, as we've seen, guarantors can play an important role for both renters and aspiring homeowners where there's rent or credit repayments to guarantee.

Learn what a guarantor is, their role in securing a mortgage or rental, and how they can help you get approved. Find out if using a guarantor is right for you.

What is a guarantor?

The transition from renting to owning is significant. When buying a home, it’s important to ensure that you access all the help you can.

We're taking a look at what's involved when leaving the world of renting to buy a house. Where to start, things to consider and whether buying a home is the right thing for you.

Having a budget and saving are a big help when it comes to buying a home. Saving for your initial deposit is hard work and it's likely that you'll have to face some sacrifices in order to buy a house.

Recent data has shown that first time buyers are now putting down an average deposit of between 15 and 18%

.* Typically, the bigger your deposit in relation to the value of the property you buy, the lower your monthly mortgage repayments. As such, it will help to focus on your savings pot. It’s tricky saving for a deposit to buy a home, especially when you’re renting.

But when you're saving for a house, holidays and shopping sprees will have to drop down your priority list. If you're currently renting, try to get into the habit of keeping an eye on your spending. There are now plenty of apps that you can download straight to your smartphone to help you keep track. It’s also worth having an accurate spreadsheet of your incomings and outgoings to keep yourself responsible.

If you want to buy a home using a mortgage, it's useful to get a copy of your credit report. There are a number of companies offering this service and it's usually quick and easy to do, although you may have to pay for it. Mortgage lenders don't like missed credit card or loans payments(amongst other things) so be sure not to fall behind on these.

Similarly, it can work against you if you've got no credit history at all. It can help you be more favourable to lenders if you can show that you've handled previous credit responsibly. On this basis, it can be worthwhile obtaining a small amount of credit to show that you can keep up with any repayments. If you have a mortgage advisor, they should be able to provide help and advise you about this, along with any other affordability checks that will be relevant. When you apply for a mortgage, you'll need to be able to evidence your income and outgoings. This is to enable the lender to assess, as far as they can, that you can afford to pay your mortgage.

There are other pathways to buying a house beyond traditional mortgages. For example, the shared ownership scheme initiated by the Government. This is where you buy a percentage of the property and pay rent on the rest to a housing association.

Consider also whether buying is, in fact, a better option for you than renting. It would never be advisable to be in over your head all for the sake of owning a home, particularly given that a failure to pay your mortgage may lead to your home being repossessed.

It's always worth seeking independent, professional advice from a mortgage and financial adviser when buying a house. It might be that it's simply not the right time for you to buy.

The additional costs of moving from renting to owning

When you buy your home, it comes with additional costs that need to be paid, some upfront and some along the way. These should be factored in when you’re planning your budget and saving timeline. Some of the things you could have to pay for upfront are:

Legal fees of your Solicitor or conveyancer.

Additional fees associated with leasehold property

Stamp duty(subject to your status and the price of your property).

A mortgage lender will typically charge a fee as well

And this is before we've even mentioned the general costs of moving, for example if you use a removals service and your deposit. Remember that you'll also be required to pay rent until the process is completed. There are other things to think about too.

As part of your budget, it’s always good to have a contingency pot in case things don’t go quite to plan when you buy your property. Your home may need maintenance that you didn’t spot when you viewed it or you may have to pay associated leasehold fees if you’re buying a flat. It's always better to be safe than sorry!

If you’ve been renting a furnished house or flat, remember that the furniture and appliances won’t be coming with you. Map out a section of your budget for chipping away at your basic furniture and appliance needs in the months leading up to your move.

It might be that you rented an unfurnished property, in which case, you're likely to have furniture to take with you to your new home. Whilst this is certainly a positive, be sure to leave space in your budget for potential storage costs in the event that your house purchase is delayed.

Searching for and buying a property on the open market can be both exciting and daunting. Always keep an open mind and be prepared to make choices and sacrifices in equal measure.Here's a few things to bear in mind.

For a lot of people entering the realms of homeownership, this can be the most overwhelming part of the process. The location in which you rent may not necessarily be the one you end up buying in. When you compare, price differences between the rental and buying markets can vary hugely, so it’s worth having some back up locations in mind if you need to consider other options.

In contrast with renting, generally speaking, you’ll probably want to stay in your new home for a good few years, if not forever. Therefore, it’s worth thinking more long term about what your needs will be. Do you need access to good schools nearby?Will you need great transport links for your commute?

Once you've thought about your needs, you can then think about your wants. Do you want to be further away from the hustle and bustle or right in the thick of it? These are all things to consider when transitioning from renting to buying.

Compromise is a key word when buying a property. From the property location to the tiles in the kitchen, the chances of you finding everything you ever wanted from a home in a single house are pretty slim.

Be patient. The right house might not appear straight away. Be clear on your ‘must-haves’ but make sure they’re realistic. Think about the budget you've saved. Can you change the parts you don’t like later on? Always keep an open mind and imagine what it will look like once you’ve put your stamp on it. There's a certain satisfaction to be gained from not having to get permission from your landlord in order to paint the walls or put up pictures.

The points above ring even truer if you're buying your home with someone else. If this is the case, try to have open and honest conversations about the things you both want before you start the search. Things can get difficult if you're not on the same page.

Set out clear time scales that you can work to. Are you under any time constraints(for example, an expanding family or an ending tenancy agreement) or are you free to take as much time as you need? If you’re making the transition from renting to owning, you should check your tenancy notice period so that you can make a smooth move from one property to the other.

Having an offer accepted on a property kick starts the sale process. Your mortgage lender will then instigate a valuation on the property. The lender has to check whether the property is worth what you are paying for it, so they need to see whether it’s fit for purpose. Each lender has their own rules on and the ability to resell the property later down the line often plays a large part.

Your solicitor or conveyancer will be carrying out their own checks on your and your lender’s behalf. The checks include:

local authority (building control issues, any nearby road schemes or enforcement actions)

environmental (checking the land isn’t contaminated)

water and drainage searches (checking the property is correctly linked to appropriate sewage)

Once they’ve checked everything, your solicitor or conveyancer will produce a property report for you to consider before going any further with your purchase. This report will be shared with the lender.

Before you buy your home, you might decide to have a more in depth survey carried out on the property. This is your chance to find out whether there are any hidden problems that you don't know about. It's important to remember that the mantra when you buy a property is 'buyer beware'. This means that it's up to you to ask questions about the state of the property, and not for the seller to offer information in this regard.

There are 3 main levels of survey available, from basic to very in-depth. Always be sure to take advice from an independent professional to ensure that you're investing in the right one.

Once the survey's completed and the mortgage offer is in place, you'll then agree a date for exchange and then completion. These can be the same date. This should be a date that's convenient to all parties. You'll still be required to pay rent up until you move, so it’s useful to know what the exit terms of your tenancy are so you can try and limit additional rent charges.

You'll then be required to provide your solicitor with the deposit. Be mindful that most banks will have a cap on the amount of money you can move in a single day so you may need to call and arrange a CHAPS (ClearingHouse Automated Payment System) payment. You will need to pay a fee for a bank transferor CHAPS. At this stage, your solicitor will ask you to sign the contract, solidifying your commitment to buy.

If all parties are then in agreement, contracts will be exchanged at which point you’re legally bound to the purchase. There will be very serious financial implications should you, for any reason, back out of the sale. You’ll lose your deposit and may incur costs. That’s tens of thousands of pounds lost. Remember, until you have formally reached completion, you don’t own the property. Once the completion date set in the contract arrives, it's time to get those keys and move into your new home.

There are many avenues you can take when you choose to buy instead of rent, but there's no question that planning and careful thought are the one thing they have in common. Make sure that you do your homework. Familiarise yourself with the language and the process and seek advice from the professionals and don't rush into giving up your tenancy until you're absolutely sure you're going to to buy.

Because when it comes to homeownership, whether you take the plunge or not, what matters is doing what's best for you and your future.

We're taking a look at what's involved when you stop renting and buy. From where to start to whether buying a home is the right thing for you.

Transitioning from renting to owning

The journey to putting down that first offer for a home can seem like a long one, especially in light of changes caused by the Covid-19 pandemic, Brexit, and other external factors. As a first-time buyer, what do you need to do to get on the property ladder?

This article will offer some helpful advice and tips for people starting their property journey. Let's take a look at what you can do to get your dream home.

Is it hard to get onto the property ladder?

Short answer? It's a difficult time to get onto the property ladder without any advice, guidance or external help. The past few years have seen a lot of changes that have had a significant impact on the housing market, making it more difficult for buyers to get a mortgage and afford deposits for a house.

The housing market has taken a hit since the pandemic

Over the past couple of years, and even more so as a result of the pandemic, an increasing number of lenders have ended mortgage offers for borrowers with a 5% or 10% deposit.

Another factor that's made it difficult for people to buy their first home is the tougher caps on mortgage thresholds, making mortgages a lot trickier to come by.

When you apply for a mortgage, how much you’ll be able to borrow is usually capped at a multiple of your annual earnings. The average multiple is only 3.53 times your income.

However, these mortgage thresholds have been capped at a lower value from a number of lenders, due to the pandemic's impact on the housing market. This has made it much more difficult for first-time buyers to apply for mortgages.

High rents mean savings are being spent every month on the cost of rented properties, rather than deposits for a dream house or flat. People can't even start to think about putting in an offer for a home when the monthly rent fees are draining most of their savings.

However, it's not all doom and gloom. The government has initiated schemes and funding to help you buy your first flat, house, family home, get a mortgage, or buy a property. So if you think you're ready to buy your first home, but you're not sure how to start, then don't worry. There are plenty of schemes and funding out there to help cover some of the costs.

Ways to get on the property ladder as a first time buyer

Luckily, there are schemes out there to help you get a foot on the property ladder:

The Help to Buy Individual Savings Account was specifically designed to help first time buyers save up a deposit. You could initially pay up to £1,200 into this type of savings account, then up to a monthly sum of £200 for the following months. The idea behind this ISA scheme was to let first-time buyers open up a savings account with a high interest rate. With a help to buy ISA, the government will add 25% to any money you put into the account.

If you opened up a Help to Buy ISA in 2019, you can save up until November 2029. That's a big savings potential ready for when you buy your first home.

A Shared Ownership scheme will allow you to buy a share of a property from a council or housing association, and pay rent on the remaining part, with an option to buy a bigger share later.

If your household earns less than £80,000 a year, or £90,000 if you live in London, you can buy a share in the property which usually amounts to 25-75% of the property's value (with the option to buy a bigger share of up to 100% of the property's value further down the line if you want to).

Shared Ownership schemes are useful for those on a lower income because the deposit you have to pay is lower, which means the mortgage is lower too. For example, if you're buying a 50% share of the house, the value of your deposit is halved.

For those who can't afford the deposit to buy a house outright, going with a Shared Ownership scheme is another option to get started.

There are also steps you can take beyond applying for authorised and regulated government schemes. Let's take a look at some examples.

As with anything, you need to put the research in when you're making a big investment. Start by thinking about what kind of property you want to purchase: a house, a flat, a new-build, a family home. Then think about where you want buy your home. Prices will vary from place to place. For example, you may not be able to afford a family home in London, but you could afford a family home in Leeds or Manchester.

If you're serious about buying and owning your first home, you need to be serious about saving. The more you can save for a deposit, the further ahead you'll be in becoming a homeowner.

We've already mentioned the help to buy schemes, but you can open your own saving accounts as well to keep you on track.

Budgeting is really important when you're saving up to buy a property, especially if you have a low income. Drafting a clear plan about what you need to pay will give you insight into what kind of property you can afford, and how to budget accordingly.

When you budget, you'll need to check that you're covering all the costs: the deposit, the mortgage payments to the bank or other lender, arrangement fees, booking fees, valuation and survey fees, not to mention tax. Make sure you know every cost. That way, you can map out an informed budget that you can follow when you purchase your home.

Having a higher credit score will improve your chances of getting a mortgage. A credit score, which is found in your credit report, details any outstanding credit agreements you have, including credit cards, loans and mobile phone plans and looks at whether you make repayments on time and in full.

When you're seeking a mortgage, your bank or building society will check your score, which will determine whether or not they decide to be your lenders.

If your score is quite low, there are ways to improve it. You could improve your credit score by making sure you do not miss any repayments and repaying more than the minimum each month on outstanding credit card balances.

Seek expert advice from a mortgage advisor

Making sure you get the best advice when it comes to your mortgage is vital when buying, not just for the first time, but at any point you wish to buy your property. It can save you a lot of time, money and effort.

You can check if you're able to apply for a mortgage by getting an Agreement in Principle (or AIP). This tells you if the lenders can lend you the amount you need for your mortgage. It doesn't take long to complete one online, and it saves you time on making a mortgage appointment. Completing the form and finding out if you qualify for a mortgage doesn't guarantee a lender will grant you one, but it's a good start.

Your monthly mortgage is at the crux of your property journey, not only when you buy a house, but if and when you eventually want to sell that house too. Getting expert guidance on how to manage your mortgage will hold you in good stead for any future properties you want to invest in.

Everything you need to know to get onto the property ladder as a first time buyer.

How to Get on the Property Ladder: A Step-by-Step Guide

If you’ve never bought a home before, the whole process can seem overwhelming. Mortgages, first time buyer worries and low deposit savings can all add to the stress.

We wrote this guide to give you an overview of where to start. Hopefully our tips will put you on the right track so you can figure out which options to consider to find that dream home.

Before you start finding and falling in love with homes, talking to estate agents, and going on viewings, it's a good idea to do a bit of research into first time buyer mortgages. Buying a property can sometimes be stressful but knowing 'what's what' ahead of time could put your mind at rest. Let's start with that all important friend of the mortgage—the deposit.

Am I able to buy a home without a deposit?

Whichever way you choose to buy your home, you'll likely need some sort of mortgage deposit for a first time buyer mortgage. Often, you'll need a lot of money to get a mortgage with the lowest mortgage interest rates.

The deposit means the mortgage loan is less of a risk for the mortgage company and so they’ll charge you a lower interest rate. That’s because a mortgage is a secured loan. In other words, if you can’t repay the loan, the the lender has the right to repossess the home and sell it to recover their debt. You get anything left over after settling the debt.

There’s no easy shortcut to get the cash. It may come from saving up, money from parents, selling things, buying less, or getting an inheritance.So assuming that as a first time buyer you can’t get a 100% mortgage then unfortunately: No deposit = no mortgage.

How much deposit do I need to buy a house?

*Things have changed since the onset of Covid-19 and nobody really knows for sure what the long-term effects will be. What follows might be subject to changes by regulatory bodies or lenders

To get a mortgage you usually need a minimum deposit of 5%. To get a good mortgage interest rate, you’ll often need more than 20% of the home’s value as a deposit and more than 40% for the best deals.

The golden rule is quite simple. The bigger the deposit, the better the interest rate, the lower your monthly repayments, the cheaper the overall cost of the mortgage.

The difference between a 5% and 10% deposit will really affect your ongoing costs. There are big differences again when you hit 20% and then 40% deposits. So if you have any chance of increasing your deposit(or perhaps asking parents to help), it's something worth considering.

You may hear people talk about LTVs instead of deposits. The LTV is the percentage of the property's value that you're loaned as a mortgage. Lenders, often use to indicate how big a deposit you need.

So, if you have £10,000 deposit for a home worth £100,000, you have a 10% deposit plus a 90% LTV ratio.

Be careful though. The deposit you need can increase if the 

 of a home is less than what you agreed with a seller.

For example, imagine you have £20,000 and have an agreed £200,000 property price. That's 10% deposit and a 90% LTV.

If a mortgage valuation then says it's only worth £190,000, a 90% LTV will only get you £171,000. The seller still wants £200,000, so to buy that house you'll need £29,000 deposit.

If this happens, it might be a good idea to see if the seller will re-negotiate.

A couple sitting on a sofa with their pets

As the buyer you might think the best option is the cheapest option. Nobody wants to overspend on their new home.

But there really is no all-time best option that suits everybody. It'll depend on lots of things like how much deposit you've saved, how good your credit rating is, and what type of property you need to buy.It will also depend on your personal circumstances like your commute to work and where your kids go to school.

For some that might mean mortgages, for others Shared Ownership, and for others still new ways that first time buyers can get on the property ladder like Wayhome.

Let's dig in to see what options are out there.

You may be eligible for one of the many shared ownership schemes available across the country. As the name suggests, you’re not buying the whole property outright, just a share of it.

They are usually run by housing associations, and borrowers typically buy a share of a property worth between 25% and 75%, and pay rent on the rest. Later on, if you can afford it, you have the right to increase your share of the property. Remember, you still need a mortgage!

Each housing association will decide, based on how much you earn(£80,000or less outside London, or £90,000 in London) and the cost of local housing. Earn too much and you won’t qualify, earn too little and you won’t qualify either. It can even take into account whether you have children or not.

Most Shared Ownership schemes are only valid on a new home. So, when you're buying your first home, keep in mind that new homes, by default, haven't been sold before and therefore might run the risk of being over-priced.

It might be a good idea to see what each housing association has on offer and search for some independent, qualified advice.

Help to Buy equity loans are an increasingly popular means of getting on to the housing ladder. By using an equity loan, you're restricted to buying a new-build property worth £400,000 or less, £600,000 in London.

With an equity loan, the Government lends you up to 20% of a property’s value, which bolsters your deposit and gives you access to cheaper mortgage rates.Remember you will have to pay interest on any mortgage and after 5 years interest on the equity loan.

The scheme is aimed at people who have only just started saving for a mortgage. You’ll still need a minimum 5% deposit to apply.

Many first-time buyers rely on the bank of mum and dad for their mortgage deposit. But parents can be much more directly involved.

There are a number of mortgages that incorporate parental finances in one way or another. If you need this help, it’s worth talking it through with a mortgage broker.

A number of deals will take parental income into account as well as the child’s income, as long as the parents can still cover their own mortgage, It can help you get a bigger mortgage as it’s worked out on a higher income.

To avoid tax complications the parents are not listed as owners, but guarantee to cover the mortgage if you can’t. So, they are liable for repayments and arrears. It’s rare, but still possible for parents to only guarantee the mortgage above the amount covered by their child’s income.

Some lenders allow people to get a mortgage as a group. It might be you and friends, or you and family, like brothers and sisters. Some lenders allow up to 4 people to club together.

There is some important information you need to know before buying your first home this way. You should consider:

a bigger property could take you into a higher stamp duty bracket,

what you would do if one, or more, of you couldn't keep up repayments,

what if one, or more, of you want to sell their share.

Remember, if the full repayments on your mortgage aren't made, even if you're still contributing your share, your property may be repossessed .

Once you take out a mortgage together, your credit ratings are linked, so their behaviour with credit affects yours. Even if you're best buds or loving siblings, sort out a legal contract to cover things that could go wrong

A couple stands together by a window, holding hands and facing each other.

Don't rush in without doing your homework. Reading as much as you can about which mortgage might be right for you and all your other options before you start viewing properties could help you understand where you might need to compromise.

Affordability and credit checks play a crucial part in a lender’s assessment of whether they will give you a mortgage.

Not everyone will assess or view you the same way, but there are many little and large things you can do to put your best foot forward.

Register on the electoral roll, or check whether you’re already registered 

. For anyone ineligible(mainly foreign nationals), you can add a note to your credit file saying you've got other proof of address/residency.

Get copies of your credit file from all three credit reference agencies: Equifax, Experian, and TransUnion(formerly CallCredit). Don’t bother paying for ‘credit scores’ that the agencies try to flog you, they don't tell the whole story.

Once you get your file, check it for mistakes. If you think your file is wrong, ask the lender to correct it. You can add a notice of correction to your file explaining why it’s unfair or how the circumstances arose. If the credit reference agency won’t help you, you can complain to the Financial Ombudsman Service.

Just remember that lenders also rely on your application form and their past dealings with you—information not contained in your credit file.

Check your address is up to date on all active accounts, even if you no longer use them.

Write to credit agencies asking to be delinked from any ex you had joint finances with. This stops their credit history affecting your applications.

If you have a poor credit score, it takes time to rebuild it. One way you might do it is to get a credit card and spend responsibly on it each month. Only spend what you can afford no more. You want to prove to lenders you can borrow responsibly.

 repay in full to avoid interest. Putting a small amount on it each month and repaying it may help build your credit score.

Issues such as county court judgments for unpaid bills are wiped from your record after six years, so wait for that until you apply. Applications only stay on your file for a year, so if you’ve a raft of those(e.g. lots of credit cards) then wait.

Set up a direct debit to make at least the minimum repayment on credit cards so you’re never late and never miss a month. It’s always better to repay more, ideally in full, so make manual repayments on top when you can.

Keep other applications to a minimum in the months before a mortgage. Applications, whether successful or not, go on your file, so space out applying for anything that adds a footprint to your file, including car insurance and mobile phones.

Lots of applications in quick succession could indicate a desperation for credit. Prioritise your mortgage if that’s the most important thing, and hold others off until you’ve got it.

Withdrawing cash on a credit card is usually not a good idea. This is specifically noted on your file. It’s frowned upon because it's incredibly expensive and not a good sign. It might suggest you’re desperate for cash and can’t live within your budget.

Always check for errors on your credit files before applying for anything else. Even if you fix an error later on, all the footprints from rejected applications may affect your ability to get credit anyway.

As you may have gathered from reading this guide and our other guides, even going down the traditional mortgage route can be fraught with difficulty.That's why in recent years new companies, like Wayhome, have sprung up to help those people buying their first home.

Because some of the ways they're helping are so new, they can sometimes seem complicated. It's probably a good idea to get independent financial or legal advice, talk to a financial advisor or solicitor, check out all the fees and costs involved(including how Stamp Duty works within the scheme), see how much of their services are free, and make sure they are authorised and regulated by the Financial Conduct Authority 

 for our rundown of the routes to homeownership.

Everything you should know as a first time buyer from how buying a home actually works to ways first time buyers can get onto the property ladder

First time buyer guide

Your offer has been accepted and you have a moving date pencilled in the diary—congratulations!

This is undoubtedly an exciting time, but with so much at stake and so much to do, it can also be stressful and confusing. But, with a little knowledge and planning, it doesn’t have to be an overwhelming experience. Our moving house checklist can help you ensure that you keep on top of all the essential tasks, big and small.

The first item on your checklist for moving house: reduce stress and the scope for nasty surprises by ensuring you’ve at least a rough idea of how much the move is going to set you back – you don’t want to find yourself relying on your credit card for emergency purposes. According to one piece of research, the average cost of removal and Post Office redirection fees for moving house in 2019 was £1,236.66.* But bear in mind, you may pick up many additional costs so it’s useful to make a list of these as you go and to keep a dedicated notebook for this purpose. You should keep this in a safe place alongside all the important documentation you’ll need as your move progresses. If you're still at the stage where you're thinking about buying you may want to check out our article on what's involved when you 

You may need to arrange a new school or nursery for your child – 8 weeks to go

If you’re moving to another part of the country or to a different area of your current town or city, you’ll need to speak to your child’s school to confirm their final day of attendance. You’ll also need to make a list of suitable schools or nurseries in the area of your new house so that you can apply and confirm a place, and then organise a start-date and prompt transfer of educational records – you may also need to order new school uniforms. If you get this aspect of moving sorted sooner, you and your kids are less likely to suffer disruption and uncertainty in the future. Your little ones will miss as few school days as possible and you’ll minimise the potential for added stress – it’s easier to have them at school than trying to entertain them at home for weeks of packing and unpacking boxes.

Give your landlord notice – 8 weeks to go

If you're renting, you’ll need to give notice. Ideally, your move date will coincide with the end of your lease. If you’re on an assured shorthold tenancy(alsoknown as a Statutory Periodic Tenancy or SPT) that has lapsed into a month-to-month periodic tenancy, you’re typically required by law to give one clear tenancy period's notice in writing. This is usually one month before your next rental payment is due if you pay monthly or, if you pay weekly, a minimum of 28 days. Whatever the case, it’s courteous to give notice once you’re sure you’re moving.

Plan to move your valuables – 7 weeks to go

Hopefully, most of your belongings will be robust enough to be packed up and transported by a removal company. But, any especially valuable or fragile items may need extra love and attention. If they’re very expensive they may not be covered by the removal company’s insurance policy. If they’re of sentimental value or irreplaceable it may be better if you move them yourself. It’s a good idea to plan insurance for your valuables now to avoid panic nearer the move date.

Begin the decluttering process – 7 weeks to go

It’s easy to underestimate just how important decluttering can be but make no mistake: this is an important item on your house moving checklist. Lots of us have homes full of things we no longer need. You can save yourself unnecessary work down the line by starting the clearing process early. Create a packing inventory as you go from room to room, go through your cupboards and drawers, sort under the stairs, empty junk from your attic, clear your garden and shed and give any spare rooms the once over. You don’t want to find yourself burdened with boxes laden with things you no longer want—not exactly a fresh start!

Large furniture: cull or keep? – 7 weeks to go

You need to figure out which items of furniture will fit into your new home. Your estate agent and/or surveyor will have given you floor plans. These will help but if you’re in any doubt you may be able to arrange a visit to your new home to take some measurements. Also, now may be a good time to give away or get rid of anything you won’t be keeping. The earlier you start, the more time you’ll have to negotiate better prices.

Dismantle any large furniture you are keeping – 6 weeks to go

Unless you’ve arranged for your removal company to dismantle your flat-pack furniture for you, you’ll probably have to do this yourself. When furniture has been flat-packed it’s easier to move, easier to store and less likely to be damaged.

Find and book a removals company – 6 weeks to go

Unless you’re moving from your parents’ home or from fully-furnished accommodation, you’ll likely have to organise the removal of all your possessions. Yes, you may be able to do this yourself by renting a van and borrowing a few friends to help you, but the DIY approach may well prove a false economy at a time when you already have so much on your plate. If you choose the professional option, book well in advance(ifnot 6 weeks before you move then as soon as you have a move date confirmed), compare quotes and only ever instruct a firm that is well-reviewed or comes via a trusted personal recommendation. Make the firm has insurance in place to cover any loss or breakage – The British Association of Removers can help you find a reputable removal company. Lastly, it’s a good idea to check whether there are any parking restrictions for large removals vehicles at both your old and new address – your removals firm may need to apply for council parking permits.

Consider your storage needs – 5 weeks to go

If you’re downsizing or are going to have a lag period between the date you move out of your old address and the date you move into your new home, you may need to organise storage for your possessions. It’s a good idea to compare storage facility prices and find somewhere suitable well in advance of moving so that you’ve plenty of time to get on with the other items on your moving house checklist.

Organise temporary accommodation (if you need it) – 5 weeks to go

If the exit date from your old home and the entry date for your new home don’t quite align – or if your move date has been set back by renovation work or a delay in the chain – you may need temporary accommodation to bridge the gap. It may be worth booking this well in advance to increase your chances of finding cheaper hotel or B&B accommodation. Or, you may be able to arrange to stay with friends and family.

child sitting on chair

Children can split your focus at the best of times, but when you’re moving, they have a habit of really slowing things down. If possible, arrange in advance for children to stay with friends or family so that they don’t get bored on moving day – it can also be nerve-wracking having children around when there’s loads of heavy lifting going on. This is one item on the house move checklist that is easy to neglect – do not underestimate the benefit of arranging for them to stay with friends and family on move day. Alternatively, you could consider paying for a registered childminder.

Make plans for your pets – 5 weeks to go

Every pet will have different needs, but you’ll need to ensure that, like your children, your pet has a place to stay on moving day. You could organise a short kennel visit, a pet-shipping service or a brief visit to stay with family or friends.

Many removal companies will do the packing for you. However, if you’d rather do it yourself, you’ll need to organise suitable packing materials well in advance – i.e. boxes, tape, rope and bubble wrap – so that you don’t risk falling short in the lead up to your move date.

Moving house can be very time-consuming. You may well need at least a day off either side of your move so that you have the time necessary to focus on your move. It’s essential that you tick this off your moving home checklist now so that you don’t have to plead with your boss come move day.

If your neighbours have become your friends, it’s nice to say goodbye well in advance of all the pre-move chaos. You can also take the opportunity to arrange for the return of any items you’ve lent or borrowed as well as for the return of any spare sets of keys. Also, any friendly neighbours that you keep in touch with might forward on post and parcels to you.

Be organised with packing and unpacking will be easier. Label all your boxes so that you’ve absolute clarity about what is inside and cross-reference where they’ll be going in your new home. Start packing stuff you won’t need – for example, unseasonal clothes, books, picture frames, and ornaments.

Notify your utility suppliers – 4 weeks to go

You’ll need to let all of your energy, phone and broadband suppliers know of your intention to move. Do this as soon as possible to give your suppliers time to move or cancel your service as you wish. If you don’t do this, you might be at risk of fines.

LEARN

What is a guarantor?

Transitioning from renting to owning

How to Get on the Property Ladder: A Step-by-Step Guide

First time buyer guide

Moving house checklist 2023: What to do, and when you should do it

Top Questions to Ask at a House Viewing: Buyer’s Guide

How to improve your credit score

The routes to homeownership