With house prices at an all time low in the UK and across the world, you can pick up a great deal on a property if you shop around. Buying a home is considered a daunting task and very costly at the best of times. When you add in mortgage droughts, a stagnant housing market and strict lending criteria, and you could be forgiven for wondering just where to start.
In 2012, more than 580,000 homes were bought in the UK, so there is still a very active market out there. Most mortgage providers require between 10-15% deposits for a property, but a few lenders have first time buyer offers which can be taken out with smaller sums to put down.
How to find a property
There are a number of ways in which you could find a property to buy as your new home or as an investment. Most people will begin searching on the internet first to see what is on the market and then pop in to their local estate agents. Looking at the property pages in local newspapers is also a good idea.
A large sum of money is required to purchase your new home and to do this you will need a deposit and a mortgage. Making small changes to your lifestyle can help when saving for that all important 15%, so make smart life choices and get focused on obtaining your new property.
Choosing A Mortgage Provider
When choosing a mortgage provider you will need to consider what you can afford to pay each month. A good way to get an estimate would be to factor how much do you currently spend on rent. Could you afford more or are you just getting by as it is? What other monthly payments are obliged to make each month? Could you cancel any of these and put some more towards your mortgages monthly payments that you could cancel?
The Extra Costs
There can be a variety of extra costs involved in buying a property so it is important to factor this into your mortgage proposal when you are applying. You need to be sure you will have enough money to pay for all the additional costs.
These can include survey fees, valuation fees, Stamp Duty Land Tax ,land registry fee fees, if any, charged by the mortgage lender or someone who arranges the mortgage, for example, a mortgage broker the buyer’s solicitor’s costs, VAT and all outstanding bills and disconnection fees involved in moving from your current home.
In England and Wales you should also take into account the running expenses of the property such as council tax, water rates and insurance costs, including life insurance, buildings and contents insurance.