If you’re thinking about buying your first home, there’s a lot to consider. Finding the right location and the right property are only part of the process; working out the financial side of things is equally, if not more, important. Here is a rundown of some of the things you’ll need to think about when taking out your first mortgage... Firstly, when considering your financing options and which property to buy, remember that mortgage lenders will generally only lend 90 to 95 per cent of the house purchase price. You will have to pay the remainder as a deposit from your savings or even gifted from family. If you’re able to put an even larger deposit down however, you may qualify for better mortgage deals.
When working out what you can afford, it’s also vital that you take into account all of the expenditure you’re likely to have as part of buying a new home. This is both in initial outlay and monthly outgoings - some of which may not be immediately obvious as a first time buyer.
As well as the property deposit, initial costs typically include the following: