When you are thinking about buying a house, one of the key questions is “what will it cost”?
The actual price of the property you are buying should be pretty clear – but what does that mean in terms of mortgage payments? And don’t forget that on top of the purchase price of your new home you may have to pay Stamp Duty. Do you know how much that will be?
We can help you with answers to both those questions.
- Our mortgage calculator will help you to work out what the monthly repayments will be on either a conventional ‘capital repayment’ mortgage or an ‘interest only’ mortgage. Our advice page on mortgages will tell you more about both types of mortgage – and others – if you need help with this.
- Our Stamp Duty calculator will tell you how much of this tax you will have to pay when you buy your new home. The good news is that it may be zero if you are a first-time buyer!
If you need some explanation of what Stamp Duty is all about, you can check out our advice page.
The purchase price and Stamp Duty are the two big costs involved in buying a new home. Don’t forget, though, that there will be other costs you need to cover. They include:
- Conveyancing and other legal costs. The actual process of buying a home brings costs with it. You can read more about this on our advice page on conveyancing.
- Removal costs. You will need to pay for bringing furniture and other possessions from your existing home.
- Decoration costs. If you are moving to a newly built home from a builder such as Larkfleet Homes you shouldn’t have to do much decoration when you move in – but you may have a lot to do if you are moving into a used home decorated by someone else!
- Flooring. If you are buying a brand-new home you may be able to get carpets laid by the builder and included in your mortgage. You clearly cannot do this if you are moving into a used home. But it makes sense to get new carpets laid before you start moving your furniture in – more expense!
- Appliances. You may need to buy things such as washing machine, cooker and dishwasher. If you are bringing these with you from your existing home, no problem. But if you need to buy new ones this can be an additional expense. If you are buying a brand-new home you may be able to get the appliances installed by the builder and the costs included in your mortgage. If you are buying from Larkfleet Homes, talk to the sales advisor for your chosen home about this.
- Insurance. Don’t forget you will need to insure your new home. That is not just a sensible precaution but will be a condition of your mortgage.
- Other things. As well as all the costs above there will be other things you may need to pay for – everything from boarding kennels for your pets on moving day to boxes and bubble wrap for packing up your possessions. It all mounts up!
An independent financial adviser will be able to help you work out what you can really afford without over-stretching your finances. Remember that interest rates on some mortgages can go up and that your home is at risk if you cannot make your mortgage payments on time.
We recommend Evolve Financial Solutions as an independent financial advisor.
You can get information about other independent financial advisors and guidance on how to find one that meets your needs here.