For some people, it feels like they need a finance or advanced maths degree to understand all the numbers associated with buying a home. Juggling the purchase price, interest rates, stamp duty, council tax, cost of living expenses, and other fees and costs can feel like a lot, but it’s important to stay on top of it all. Even as a first-time homebuyer in most areas of the country, you’ll need tens of thousands of pounds on top of your deposit up front in order to secure your dream property.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
The importance of savings
There’s no way around it — you will need a lot of money at your disposal if you want to buy a home. Since you might face a lot of obstacles getting on the property ladder, the best thing to do is start saving as early as possible to eliminate (or at the very least, dwindle down) that hurdle.
To understand how much you’ll need to cover the various costs associated with buying a home, you’ll of course need to work out your budget for the home itself and how much of a deposit you can afford, but don’t forget to estimate other fees and costs as well. This will be dependent on the area of the country you’re looking in, so don’t assume what is true for one area will be for another. Think about how much solicitor/conveyancer and surveyor fees will be, the average prices of furniture and decorations, the leasehold cost, stamp duty, and removal fees to get an idea of the sum you’ll be responsible for.
And since each lender is different, you’ll need to shop around for one that will allow you to comfortably make repayments —and pay all your bills too — for years to come. So, don’t forget to check the fine print for any and all fees or charges for which you might be liable as well as any other arrangement or product fees included, since these can all add a significant amount to the cost of buying your home.
Keeping all of these costs in mind when beginning your home-buying journey will go a long way to manage expectations and ensure you are prepared for what’s to come. But signing on the dotted line doesn’t mean that your journey is over; in fact, it’s just begun!
The numbers don’t stop adding up after you own the home, so don’t forget to consider any potential maintenance or improvement costs that the property may need. Older properties tend to require more attention than new builds, so be sure you figure out a way to be prepared to deal with the upkeep of the home.
Be prepared for one of life’s biggest decisions
Deciding to become a homeowner is one of the biggest financial decisions you can make in life, so the best thing you can do to prepare is to be aware of all the financial implications, not just the upfront costs but all ongoing expenses. When you know how much you’ll need to cover initial fees and other costs, you’ll be ready no matter what’s thrown at you.
If you’re thinking about buying your first home, we’re here to help. Learn more about how we help first-time buyers get onto the property ladder and how we can help you find the right mortgage, contact the experts at Dental & Medical Financial Services today.