How much can you afford?
The first thing you need to do before deciding to buy a house, is to decide how much you can afford. You will need to look at how much money you have available and how much you can borrow.
Before deciding how much to spend on buying a house or property, you will need to ensure you have enough money to pay for all the additional costs, including:
- survey fees
- mortgage payments (click here to speak to a free no obligation whole market mortgage advisor for an affordability check)
- valuation fees
- Stamp Duty Land Tax
- Energy Performance Certificate
- solicitors fees (see our Property Conveyancing guide)
- removal expenses
- any final bills from your present home which will have to be paid when you move e.g. gas and electric
You should be aware that if you start the process of buying a house or property and the sale then falls through, you may have already paid for a property valuation and/or survey. If the solicitor has started any legal work you may also have to pay for the work done.
You should also take into account the running expenses of the property you wish to buy. These may include:
- community charge/council tax
- water rates
- ground rent, if the property is leasehold
- service charges if the property is a leasehold flat
- insurance costs, including life insurance, buildings insurance and contents insurance
- heating and other utility bills
You will have to pay a deposit on exchange of contracts a few weeks before the purchase is completed and the money is received from the mortgage lender. The deposit is often 10% of the purchase price of the property but it can vary.
Contact us today and we can put you in touch with a property adviser, whom you can trust to provide reliable advice that is specific to your needs and circumstances.