Buying your first home is undoubtedly one of the most important financial commitments you will undertake in your life. It requires careful and well thought out planning and all the costs involved should be considered.
One of the first considerations is how much deposit you will need for the intended property. The percentage of the total value of the property will vary from lender to lender, but in general, a minimum of 5% but ideally between 20 – 25%. The higher your deposit, the lower the monthly payment installments will be.
It is advisable to calculate an estimate of all the following costs:
- Stamp Duty – A property over £125,000 will have a stamp duty (land and building transaction tax in Scotland)
- Solicitors fees
- Mortgage arrangement fees
- Valuation fees
- Survey fees
- Buying and moving costs
- Building insurance
- Legal fees
These days the most important thing is to plan ahead and know what documents you need and fees to pay. It is also a good idea to check your credit rating before you start the application process. In the UK credit information is complied by three main companies:
All three companies can provide you with either written or online copies of your credit report.
The application process may varying depending on the lender and your credit score, however you will probably need the following documents:
- Your passport
- Payslips from the last three months / self employed Last years Accounts or SA302s
- Bank statements from the last three months
- Last P60
- Proof of Address (utility or council tax bill dated in last 3 months)
For more details contact your adviser.