Householders Guide

Buying a Home

Buying a home is a big step which involves a long term finical commitment. Right from the start it’s important to work out how much you can afford, consider how much money you have coming in and how much is going out. You don’t want to make a commitment to a mortgage and find you can’t afford some of life’s little pleasures. Think about the things you like to spend money on, even when you don’t have a mortgage.

When buying a home the first thing to determine is how much money you have available and how much you can afford to borrow. There are many different financial institutions such as banks and building societies which will offer loans to people buying a property.
Once you’ve decided how much you to spend on a property you’ll then need to get an idea on how much money is needed for additional costs, for example:

  • Property survey and valuation fees
  • Stamp duty
  • Land registry
  • Local authority search
  • Mortgage lender or broker fees
  • Solicitor’s costs
  • VAT
  • Removal costs
  • Final bills from your previous property

When buying a home, aim for a property that costs two-and-a-half times your annual salary. Also your monthly payments should not be more than 36% of your gross monthly income.

When buying a home you’ll need to take into account the running costs of the property your considering to purchase, for example:

  • Council tax
  • Ground rent and service charges , for leasehold properties
  • Insurance costs, for example buildings and contents insurance
  • Bills, for example, gas, water and electric