Thinking about buying your first home? There’s a lot to take in, but we’ve got you covered; from budgeting to finding a suitable first-time buyer mortgage.
1. Budget for all costs
Buying a home can be more expensive than you initially think. Aside from the obvious - your deposit and monthly mortgage repayments - there are many other costs involved when buying a home:
- Home survey costs
- Solicitor or conveyancer fee
- Removal costs
- Buildings & contents insurance
- Immediate repairs (if applicable)
- Furnishing and decorating
- Mortgage arrangement and valuation fees
- Stamp Duty (Land & Buildings Transaction Tax in Scotland, or Land Transaction Tax in Wales)
Note: Currently, first-time-buyers will pay no Stamp Duty on the first £300,000 for properties worth up to £500,000 (more info here).
Understanding how much you might need to outlay before beginning the mortgage application process will help you budget accordingly.
Make sure you also understand the extra costs involved in owning a home once you’ve exchanged contracts and moved in. For example, if you buy a leasehold property you might have to pay a yearly ground rent and service charge to the freeholder. Likewise, if you live in a serviced apartment, you may have a regular service charge to pay.