Posted: 1 June 2016 by Higgins Homes
Buying a new home is a big milestone in anyone’s life but, given the large sums of cash involved and the upheaval of moving, there’s plenty that can go wrong. However, with a little planning and some simple, money saving ideas, you can ensure a smooth transition to your new home and that start of an exciting new chapter.
Calculate the Figures
Getting your numbers right is essential when you’re buying a new home as this will make the difference between sums that work and figures that keep you up at night. Do you have enough deposit to buy the property you want? Remember that the best mortgages deals require something like a 25% deposit but you can still obtain a mortgage if you have just 10%. Make sure your mortgage payments will be affordable and still leave you with enough to live on each month.
Are you eligible for help?
There are numerous schemes that may be able to offer assistance to those looking to buy a new home. If you have enough for a 5% deposit then Help to Buy could help you find the rest, either via an equity loan or a mortgage guarantee. You could also receive up to £3,000 government bonus, towards your new home, by saving your cash in a Help to Buy ISA.
Get on top of the fees
It’s not just the mortgage payments that you need to factor into your calculations as buying a home involves a number of fees too. Legal fees (minimum £800, depending on the purchase price), Stamp Duty on properties worth more than £125,000, survey fees (£400-£700 per survey) and valuation fees (the average is around £300) can all add up.
Do your research
For most people, buying a home is probably the biggest purchase they will make so getting that purchase right is important. Check out house prices in the area you’re interested in, look into planning and development for the area to get an idea of whether it is up and coming and so prices will continue to rise. Does this part of the world have the right transport connections for you, are there schools nearby and will you have access to the amenities you want from your move? All this should be considered before you start thinking about contacting a mortgage lender.
Ask questions about the property
When you find your dream home, don’t go with (just) your gut instinct but ask important questions too. For example, how long has it been on the market? Why are the vendors moving? Are there any existing neighbour disputes? How long has the vendor lived there? How many viewings has the property had? Who are the neighbours? These will provide you with more information than just what is on the estate agent’s particulars.