Buying Guide Step 1

Homebuyer’s Guide

This guide is designed to help you understand what is involved in buying a property*. If you have never bought a property before, you may need the whole guide. If you have bought a property before you can just click through to the sections you will find useful.

There are 7 manageable steps to buying property – so you can easily find the stage of the process you are at.

If you have any questions about any part of the buying process then give us a call for advice.

*The guide covers buying property in England and Wales. The process in Scotland is slightly different

Working out which property you can afford to buy

We understand buying a property is a big financial commitment and you need to consider your purchase for the long-term.

Budgeting for your Mortgage

The budgeting is fairly easy – you need to work out your household income and then you need to work out what you need to spend each month.

When you do this don’t forget to include all your monthly outgoings, including what you are prepared to compromise on as well as what you cannot do without.

You do need to allow some money for luxuries including nights out and holidays, otherwise you will not enjoy the process of setting up home.

Rightmove has a handy Budget Calculator – Download it here. This is a really useful tool to help you work out how much you can afford to pay on your mortgage.

You put in all the items that you spend money on,  monthly and annual expenses, it then prompts you to remember those one-off charges like insurance and TV licence to make sure you are budgeting effectively.

Once you know what you can pay back to the mortgage company each month, you can then work out how much money you can afford to borrow using a Mortgage Calculator like this one on Rightmove.

If you need help with this process then you can get mortgage advice from our trusted partners Taylor James – see more in our Mortgage Section.

Points to Consider

Don’t forget to build in contingencies to your mortgage budget. You should consider the following questions:

If I take on these mortgage payments can I still live the lifestyle I want?

Could I continue to pay the mortgage if interest rates went up?

What if my circumstances change, for example having a baby or needing to nurse a sick relative?

What would happen if I lost my job?

A 1% rise in interest rates on a £200,000 mortgage could cost you an extra £166 per month depending on the mortgage you have.

You might consider fixing your repayments,  taking out critical illness cover or other insurances to cover loss of earnings to protect your mortgage repayments – speak to your mortgage advisor about the most appropriate products.

Using Your Savings

If you have substantial savings or you qualify for a Help-to-Buy scheme this may open up different mortgage options to you that you had not considered.

You can discuss all your options with an independent mortgage advisor – read more

Other Costs

Don’t forget to calculate the costs of moving house too, such as legal fees, mortgage arrangement fees and removal costs.

Next > Step 2 – Getting a Mortgage