Unless you're a cash buyer, you'll need to arrange a mortgage to buy a home.
A mortgage is a loan against the property, and there's a huge range of different ones available from banks, building societies and other lenders.
Mortgage rates vary too, so it's worth shopping around to get the best deal you can
What can you afford?
Based on your income, your mortgage lender can help you work out how much you can afford to spend on a property.
Most lenders will give you what's known as an 'offer in principle', or the amount they'd be prepared to lend - and it's useful to get this before you start looking for a home.
Also, bear in mind there are always additional expenses like legal fees and moving costs.
An idea of things you'll need to budget for are in the two lists below:
Moving costs:
- Deposit - normally 5-10% of the property value. If you take out a substantial mortgage, you may be asked to pay a mortgage guarantee premium
- Mortgage repayments and lender charges
- Building survey or homebuyer survey and valuation
- Solicitor's fees, including searches, Land Registry (registry of deeds sometimes in Northern Ireland) and stamp duty
- Removal costs
- Possible reconnection costs for phone, gas, electricity and water
- Re-directing post
Monthly costs:- Mortgage
- Buildings and contents insurance
- Council tax
- Water rates
- Electricity and gas
- Phone and internet
- Ongoing repairs and decoration
