Buying a Home on a Budget For Dummies (UK Edition)

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Handy Contact Information when You’re Buying a Home in the UK

Here’s some useful contact information to help you find UK house-buying experts. Try these numbers and websites for help finding the right person for the job.

• Estate agent: The National Association of Estate Agents or call 0844 387 0555.

  
  



• Licensed conveyancer: The Council for Licensed Conveyancers or call 01245 349599.

  
  



• Solicitor: The Law Society or call 020 7242 1222.

  
  
  
  

  • In Northern Ireland, try the Law Society of Northern Ireland or call 028 90 231614.

    
    
  
  

  • In Scotland, contact the Law Society of Scotland or call 0131 226 7411.

    
    
  
  
  
  



• Surveyor: Royal Institution of Chartered Surveyors (RICS) or call 0870 333 1600.

  
  
  
  

  • In Scotland, RICS Scotland or call 0131 225 7078.

    
    
  
  
  
  

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Tips on Buying the Right Property

Here are some top tips on the right questions to ask and what to look for when buying a property. Although everyone’s requirements are different when it comes to buying property, keep these few general rules in mind:

• Be clear in your mind about what you want before arranging to view any properties.

  
  



• Research the area carefully, particularly if you aren’t familiar with it.

  
  



• Don’t let the agent or seller rush you into a decision: Take your time and trust your instincts.

  
  



• Ask yourself whether you can see yourself living in that property. If you aren’t sure, keep looking.

  
  



• Ask the sellers about the neighbours and whether they have had any problems. If the sellers have made a complaint about their neighbours to the police or council, they are legally obliged to tell you if you ask.

  
  



• Time the commute to work and the school run at the time of day you are likely to make these journeys.

  
  



• Visit the property after dark. If troublemakers are hanging around on street corners, you may not feel safe walking home late at night.

  
  



• Commission a survey. If you don’t, you may miss serious structural problems that are expensive to rectify once you have bought the property.

  
  

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Mortgage Do’s and Don’ts

Your home is likely to be your most expensive purchase – ever. So getting the finance right is vital. Check these quick but crucial tips on how to get the best mortgage for your budget when buying a new home.

• Don’t accept the first mortgage offered to you by your bank. Shop around to see whether it’s competitive.

  
  



• Do use an independent mortgage broker to find a home loan; this can save you time and effort searching the market for the best deal.

  
  



• Don’t overstretch yourself: Work out whether you can afford to meet the repayments if interest rates rise.

  
  



• Do put down a deposit if you can. If you’ve got a deposit, you’ll not only get a better mortgage rate, your monthly repayments will be lower and you won’t have to pay Mortgage Indemnity Guarantee.

  
  



• Don’t get a mortgage with extended redemption penalties. Paying a penalty for switching mortgages before an offer comes to an end is fair enough. But don’t accept a mortgage with penalties that extend beyond this period.

  
  



• Do shop around for buildings insurance. Some lenders charge borrowers a one-off fee if they don’t take out the buildings or contents insurance with them. It may be cheaper to pay this and buy your insurance elsewhere.

  
  

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Extra Costs to Budget For when Buying a Home

On top of the property purchase price, you must remember to budget for a number of extras. Make sure you don’t get surprised by hidden costs when buying a house in the UK. Make sure you’re aware of these fees and bills:

• Solicitor’s fees, local searches, and Land Registry fee.

  
  



• Stamp Duty Land Tax on properties over £125,000, £150,000 in certain disadvantaged areas, or £250,000 if you are a first time buyer.

  
  



• Mortgage lender’s valuation and survey. It’s tempting to skimp on the survey but you may regret it in the long run.

  
  



• Mortgage application fee, booking fee, arrangement fee, and mortgage broker fee (where applicable).

  
  



• Buildings insurance. You can’t get a mortgage without it.

  
  



• Removal costs. One way of saving money is to do the move yourself, so persuade strong mates with vans to lend a hand.

  
  

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