Buying your home is a huge financial undertaking, but one that will reap rewards for a long time to come if handled correctly. You will no longer need to pour money away on rent, adding to your landlord’s financial wealth, but you will instead be making a shrewd investment of your own.Bank manager and financial lenders like people to own their own houses, as it is a sign of stability and long-term planning. So you may find it easier to secure loans and credit down the line.
However, be careful. Too much credit can overstretch finances, especially at a time when you have already committed to a mortgage, or paid a large amount of money on a new property. Make sure you can meet your financial; obligations without spiralling into huge debt. Also, don’t forget that the costs of buying a property don’t stop with the price tag attached to it. There are plenty of extra costs that need to be met as well.
Fees and Stamp Duty
Solicitors’ fees are normally calculated as a percentage of the cost of your mortgage. Check with him or her what the fees are likely to be in advance, so you are not met with a nasty surprise later on. Don’t forget stamp duty too – this is a tax that applies to properties costing more than £100,000 and again are calculated according to the agreed selling price. Mortgage advisors will also normally invoice you for their services and advice.
Surveying
A survey on a property will typically set you back around £150 to £200 pounds each. In some cases, e.g. if a house is very old or unusual, the surveyor will need to call in a specialist, which will add to the bill. If a survey reveals problems with the property that must be corrected straight away (such as damp or subsidence), you may find that a portion of your mortgage is withheld until the work is completed. This is known as a retention, and may result in you having to find extra cash to make up the difference yourself.
Moving Costs
A minority of house moves are extremely simple and can be done by the new owners using car boots, vans and the mercy of friends with transport. Most property moves, however, require a larger-scale operation. Hiring a removal van and people to shift your belongings can be expensive. However, it removes the stress and guards your possessions against being broken or damaged by well-meaning volunteers who don‘t know how to lift and handle them properly. It also speeds the process up on moving day.
Insurance
Don’t forget that a condition of your mortgage will be the payment of buildings insurance, in order to protect the mortgage lender’s investment. You are advised also to take out contents insurance to minimise damage in the event of an emergency in your new home, such as flooding, fire or theft. You may also like to consider choose taking out payment protection cover to cushion the blow of a change in your financial circumstancesand give you a chance to get back on your feet.
Furniture and Fittings
You don’t have to buy extra furniture for your new home, or even redecorate it if you don’t want to, but this can be the most enjoyable part of the whole moving process. Choosing new wallpaper, paint and furniture helps plant your personality on your new home and freshen it up, ready to begin your new life.