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Buying your first home is an exciting time but it’s a big commitment and with it come lots of responsibilities. Before you climb onto the property ladder, consider carefully what the implications will be for you financially and whether you can afford the mortgage repayments, bills and other costs – otherwise you could end up losing your home. Also, money isn’t the only factor in purchasing a property – there are lots of other practical considerations such as location, transport and access to facilities as well as the condition of the property itself. Read on for tips on house hunting for your first place of your own. Be realistic about what you can afford. Don’t just look at the house price – there will always be various other costs to factor in, such as stamp duty, solicitor and/or estate agent fees, a valuation report, removal van hire and any renovation or redecoration costs if necessary. You may also have to put down some cash savings of your own for a deposit as you may not be able to obtain a 100% mortgage. And look into what the council tax band is to check whether you can afford it. To help give you an idea of how much you will be able to obtain mortgage-wise, get an ‘agreement in principle’ from several mortgage lenders – a confirmation of what they are prepared to lend you. Also, shop around for the best mortgage deal as there are so many different types on the market. Consider which is the most suitable for you in terms of both repayment methods – capital and interest or interest-only (endowment) as well as the type of rate – standard variable rate, tracker, fixed rate or capped rate. See our separate guide to mortgages in the Domestic Mortgages section of this site for more information on what all these mean. If property prices in your area are prohibitive, consider other options such as shared ownership – either by purchasing through a housing association or by getting a mortgage with a friend. The government also has a couple of schemes for those who are struggling to get onto the property market, such as the Key Worker Living Programme for key public service employees and the HomeBuy Programme, a type of shared ownership scheme. Make a list of things to look out for. Take an experienced homebuyer with you if you can as they may be able to spot things more quickly than you, if not for the first viewing then certainly for the second. Check that all the appliances and fittings work - such as central heating if installed, and cooker, fridge and washing machine if included in the sale. Think about the area in which the property is located. Does it suit your needs? Think about how you will get to work (availability and cost of public transport or level of road traffic congestion) and how convenient it is for shops, pubs and restaurants if these are important to you. Also, if you plan to have children at some point while living there, check out the local schools and how good they are. Your lender will require you to take out buildings insurance on your property. Some lenders will stipulate that you must use their own insurance, while others allow you to arrange your own. If so, shop around for your home insurance. As with mortgage products, there are so many different deals available and it pays to get one that suits your needs. This article is copyright protected and is not for republishing |
