Potential costs of buying a home
Buying your first home is one of the most exciting experiences of your life, but it's also a whole new world, filled with strange administrative requirements and, of course, expenses. For the uninitiated, buying a home can prove a surprisingly expensive business, at a time when money is at its tightest.
-
.jpeg)
Planning ahead can help you prepare for those expenses, and budget accordingly. Knowing in advance how your costs could add up will help you work out how much you can afford for your first home. A mortgage calculator will show how much you could borrow depending on your income and the size of your deposit, and whether you may need to use some of your savings to pay for those expenses instead of increasing your deposit.Here are some of the key expenses:
*Stamp Duty: This has changed significantly in recent years. At the moment buyers only pay Stamp Duty on properties over £125,000 while homes bought for £1m and over will attract a 5% levy. Below is the full Stamp Duty table for residential properties
Home bought worth:
0 - £125,000: 0%
£125,001 - £250,000: 1%
£250,001 - £500,000: 3%
£500,001 - £1 million: 4%
Over £1 million - £2 million: 5%
Over £2 million: 7%
Over £2 million bought by corporate bodies: 15%
*Stamp duty rates depend on factors such as the purchase price of the property, whether the property is residential, whether the property is in a 'disadvantaged area'. See How to sell your home: Watch our new TV ad - benefits of registering with Primelocation.com
- Primelocation.com House Price Index
- how to get the best out of estate agents when buying a property
- viewing property - helpful hints
- guide to HIPs when buying a property
- what your surveyor will do
- how to choose a removal company
- guide to choosing a surveyor
- what your property solicitor will do
- guide to choosing a property solicitor (conveyancer)
- moving checklist
- guide to buying your first home
At the moment first time buyers only pay Stamp Duty on properties over £250,000
