Obviously an important question and one which will determine what home you choose to buy. First things first start by finding out how much you can borrow, as most of us will need a mortgage. This can be done online but for accuracy speaking to your bank or building society will give you a better understanding of not only the amount you can borrow but also the upfront and monthly costs. Be aware that lenders have an obligation to check affordability both now and in the future so getting accurate advice is essential.
Alternatively speak to an Independent Financial Advisor (IFA) who can assist you in searching the whole market and deal with the chosen lender on your behalf. There is normally a charge for their services but if you feel you need some help then its money well spent. If you would like an introduction please let us know and we will be happy to oblige.
Don’t forget when you are working out your costs to factor in any stamp duty charges, legal fees and survey costs all of which will vary depending on the property you buy.
The current stamp duty land tax (SDLT) charges are as follows
|Purchase Price of Property||Stamp Duty Land Tax|
|Up to £125,000||0%|
|£125,001 up to £250,000||2%|
|£250,001 up to £925,000||5%|
|£925,001 up to £1,500,000||10%|
If you buy a house for £275,000 the SDLT you owe is calculated as follows
What to read next: How much should I offer?
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