Buying a home
Preparing to buy
When you decide you want to buy a home, you may need to get a mortgage to buy it. If so, you need to work out how much you can afford to borrow.
When deciding how much to lend you, a mortgage lender will consider:
- the total amount you can borrow
- whether a deposit is needed
- how affordable your monthly mortgage payments will be
How your mortgage affordability will be worked out
The mortgage affordability assessment will take into account:
- your income
- your current outgoings, for example, utility bills, insurance and Council Tax
It will also consider any changes that might affect whether you would be able to afford repayments (for example if interest rates change, or if you were made redundant).
Work out how much you can afford for a mortgage on the MoneyHelper website.
Additional costs
Other costs you may need to consider when buying a home include:
- taxes, like Stamp Duty Land Tax (SDLT), also called stamp duty
- surveys - read about the different types of surveys you can have on a new home
- solicitor’s fees
- mortgage fees
- search fees
- land registration fees
Property running costs
There will be extra costs to run your home when you buy it. For example:
- Council Tax
- cost of heating the property
- other bills such as water and broadband
If you’re buying a leasehold property
You may also have to pay:
- services charges (this usually covers building insurance)
- ground rent
Find out leasehold service charges and expenses.
Credit score
Your credit score can affect whether you can get a mortgage and the kinds of deals you’ll be offered. The higher the number in your score, the more likely you are to be offered a mortgage.
Find more information about how to check or improve your credit score on the MoneyHelper website.
Identity checks
You’ll need to prove your identity to your:
- estate agent
- solicitor
- mortgage lender
Find more information about documents you need to have to prove your identity on the MoneyHelper website.