Budget
The amount of money you can spend on buying a new home will depend on how much money you can borrow from a bank or building society. The lender will consider the amount of deposit you put down, your salary and your regular outgoings when deciding how much of a mortgage they are willing to offer you. You can use a Monthly Budget Calculator to work out your monthly outgoings and how much you can afford to pay out for your mortgage each month.
You'll also need to factor in additional costs such as solicitor fees, stamp duty, surveyor's fee, land registry fee, packing and removal costs and the cost of furniture. Some developments may have maintenance costs and house builders can give you full details of these.
Below we have provided you with a checklist of these costs. Many of the figures, for example the surveyor's fees, will depend on the size of the property and its' location. The rough estimates below will give you a general idea of how much money you'll need to buy a new home.
There is no stamp duty on homes costing less than £60,000. For homes worth more than this, stamp duty is calculated in the following way:
- 1% for properties over £60,000
- 3% for properties over £250,000
- 4% for properties over £500,000
You can calculate the stamp duty payable on your purchase on the Inland Revenue website.
Finally, it is always a good idea to have an emergency fund to cover any cost-overruns or unexpected expenses.