Recently, been asked by several friends about tips and costs about buying a house in Leeds. Maybe buying a house for themselves or as part of an investment to live in and rent out a room so that someone helps pay part of the mortgage.
To share my own experiences, here are some considerations you should ask yourself.
MONEY: How much you can borrow from banks? How much do i have as deposit? You need to speak to a mortgage broker to find out what you can borrow, so that you know what's the maximum price range you can go upto. What you need to get from the mortgage broker is a Decision In Principle (DIP), this basically says that the mortgage lender is willing to lend to you based on the basic search and information you have provided to them. What mortgage products is available? You need to understand the mortgage product is 95%, 90%, 85%, 80%? Is it fixed or variable rate and the terms 2years, 3years, etc. Redemption charges if you wanted to switch mortgage.
To share my own experiences, here are some considerations you should ask yourself.
MONEY: How much you can borrow from banks? How much do i have as deposit? You need to speak to a mortgage broker to find out what you can borrow, so that you know what's the maximum price range you can go upto. What you need to get from the mortgage broker is a Decision In Principle (DIP), this basically says that the mortgage lender is willing to lend to you based on the basic search and information you have provided to them. What mortgage products is available? You need to understand the mortgage product is 95%, 90%, 85%, 80%? Is it fixed or variable rate and the terms 2years, 3years, etc. Redemption charges if you wanted to switch mortgage.
PROPERTY:Which area do i like? What sort of house/flat would i like? How many bedrooms? What type of decorations/layout? Research the area, go and view lots of houses and compare. Have a look at shops nearby, transport link (train station, bus stops, etc). Go and have a look at the area during the day time and night time. Have a feel/imagine what it would be like living there.
COSTS: Cost of buying a house and the running cost? Make sure you have calculated these costs, and you can afford it and don't overstretch yourself,
Costs to think about buying your home:
- Deposit
- Surveyor's fees
- Stamp duty (Currently upto £175,000 @ 0%, £175,001 - £250,000 @ 1%, etc)
- Mortgage application fees (depends on the lender and the mortgage you choose)
- Solicitor fees (legal cost, searches, land registry,etc)
- Furnitures and fittings (Sofa, TV, fridge freezer, bed, washing machine, carpets, curtains/blinds, etc)
- Moving in cost, maybe you will need to hire a van or get removal company to help move your existing furntures
Cost of owning your home:
- Building and contents insurance
- Mortgage payments
- Service charge (mainly in flats, but some houses in a residential area can have a charge)
- Council tax
- Water
- Gas
- Electricity
- TV Licence
- Possible insurance for breakdown (or when something breakdown you get some tradesman in to fix it)
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