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
4Homes Essentials
Property Search
UK Region Ratings
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.
Unless you're lucky enough to be able to buy your home outright, you'll need a mortgage to finance your purchase. 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.
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 three times the first income plus the second income, or 2.5 times your joint income. To this, add your deposit, the down payment. Most mortgage lenders require a minimum of five per cent of the value of the property as a deposit.
Research mortgage deals using comparison tables including Moneysupermarket and Moneyfacts (www.moneyfacts.co.uk) (used by the national press for mortgage information).
If you need help with choosing a mortgage, visit a mortgage broker. Check out Fancy A Mortgage, www.mortgagebroker.co.uk and www.charcol.co.uk.
Then get yourself approved for a mortgage. This proves to the estate agent and seller that you are serious about buying a home.
You'll have to have set aside cash for upfront expenses such as the valuation or survey, and mortgage fees. And if the price of your property is more than £125,000, then you have to pay a government tax called 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.
Check out the 4homes budget calculator , or use the FSA’s budget calculator to work out a monthly budget for before and after a move so you can see if you can afford more commitment.
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