How To Buy A House

Thinking of buying a new house? Read our step-by-step guide to what's involved when you buy a home, and make your move as smooth as possible.

By Sarah Jagger

Whether you're a first time buyer or an old hand at moving house, it never hurts to have a checklist handy so you can be sure you've got everything covered. Follow our essential guide to everything from financing your move to booking the removals company.

Finance Your Move

Unless you're lucky enough to be able to buy your home outright, you'll need a mortgage to finance your purchase.

Estimate Your Repayments

Use the FSA's mortgage calculator to give you an idea how much your monthly mortgage repayments are likely to be. This can help you estimate the size of mortgage you can afford at a particular interest rate - and importantly see if you can still afford it should rates rise.

Work Out What You Can Afford

Mortgage lenders work on a formula based on earnings. You can do a rough estimate by multiplying your salary by three. If you are buying with a partner, this rises. To this, add your deposit, the down payment. Check with your lender what percentage of the property value they are prepared to lend.

Research Mortgage Deals

Research mortgage deals using comparison tables including Moneysupermarket and Moneyfacts (used by the national press for mortgage information). If you need help with choosing a mortgage, visit an independent financial advisor or mortgage broker.

Agree In Principle

When you have picked a lender, you will need to go through the process to obtain a mortgage agreement in principle. This will prove to estate agents and sellers that you are serious about buying a home. You can then begin looking for it.

Check Your Budget

Ensure you can afford the costs associated with the purchase as well as the ongoing maintenance of your home by budgeting accurately. Don't overstretch yourself. How will you cope if rates rise and your monthly payments go up?

If you're not sure how to compare between the deals on offer or are new to the mortgage market, ensure you get expert advice from a market wide, independent financial advisor.

Moving House: Extra Fees

You'll have to have set aside cash for upfront expenses such as the valuation or survey, and mortgage fees. And you will also have to factor in stamp duty. Find out how much this will be using the Inland Revenue's calculator.

You'll need to budget for life and home insurance, furnishings and any work you plan to do to the property, such as decorating once you move in. You should also consider making a will once you're a homeowner especially if you have dependants. Check out the Law Society's website for more information on making a will.