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Everything You Need to Know About Buying a Home

Buying your first home can be an exciting but nerve-wracking prospect.

Whether you’ve been renting for some time and feel you’re ready to transition to being a homeowner, or you’re moving out for the first time and investing all your saving into owning your own property, we’ve created a simple advice guide containing everything you need to know about buying and owning a home.

Fees to Pay When You First Buy a House?

  • Deposit – this can be anywhere up to 20% of the purchase price
  • Stamp Duty – A government tax paid on homes of a value over £125,000
  • Valuation Fee – A payment made to the mortgage lender after they assess the value of your property to determine your mortgage value and repayments
  • Surveyor’s Fee – Although an optional it is recommended to get your new property checked by a surveyor as it could save you money in the long run if you catch any problems early
  • Legal Fees – You can’t do everything alone and you may require a solicitor to assist you with some of the legalities of buying a house
  • Electronic Transfer Fees – this covers the cost of the lenders transferring the mortgage money to a solicitor

Monthly / Yearly Outgoing Payments?

Below is a basic list of monthly outgoing payments that are standard for all UK homeowners, as well as a few additional costs that most us add to our monthly budgets.

  • Monthly mortgage payment
  • Utility bills (gas, electric and water)
  • Council tax (the amount is dependent on which band your house is in)
  • Telecom bills (broadband, digital TV, landline)
  • TV Licence (this costs £147 a year, however, can be paid monthly or even weekly)
  • Insurance (this varies on what private insurances you take out but you’ll have to pay buildings insurance)
  • If you buy a flat you may run into ground rent charges
  • If you have no private parking, you may have to pay for a parking permit.

TOP TIP: Get yourself a calendar or spreadsheet that you can track when all your payments are due.

Quick Buyer’s Top Tips for Buying a House

  • When looking at different properties and areas, have a list of ‘non-negotiables’ for your new home. These are things the property must have and you’re not willing to purchase without. This might make for a lengthier process but it avoids disappointment in the long run.
  • SAVE. SAVE! The higher the deposit you can put down when you first purchase your new home, the better chance you’ll have of securing a mortgage and it just starts you off on a better foot.
  • Investigate the area. This sounds obvious but when buying a property it is essential to learn everything about the area and consider your life in the future as well. What are the job prospects? Education facilities? Crime rates?

We hope you now feel more clued up when it comes to buying a home and wish you the best of luck in your new adventure.