How Much of a Deposit Will I Need?
Generally, you will need to pay a deposit of 5-20% of the property value, depending on the mortgage provider.
So, if you were buying a property valued at £150,000 and you had to pay a 10% deposit, that would be £15,000.
The more of a deposit that you pay, the cheaper your mortgage will be.
What Other Costs Are Involved?
When buying a property, there is more to pay than just the deposit and your mortgage. Other expenses could include:
- A Solicitors fee
- Removal/ Moving costs
- Survey costs
- Initial furnishing/ decorating costs
- Building insurance
- Mortgage arranagement/ valuation fees
Budgeting
One of the most important things to consider when buying a property is that you will be able to afford the mortgage repayments each month.
The best way to do this is by creating a budget. You can do this by dedeucting any current outgoings (ie rent, shopping etc) from your disposable income (your income after tax, national insurance etc).
Lenders will check before granting the mortgage that you will be able to afford the repayments.
Finding A Mortgage
Don't go with the first option you see!
There are various mortgage providers who will each offer different conditions such as deposit percentage and interest rate etc. Shop around and find the best deal to suit you.
The Mortgage Application Process
No matter where you apply for your mortgage, the lender will want to make sure that you can afford the repayments and that they will get their money back.
As part of this process you will have to provide evidence of your income (ie salary) and outgoings (ie debts, household bills and other costs such as childcare).
To prove your income, you may be asked for some recent payslips.