KIS Bridging Loans
 
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KIS Finance
For most people, buying a home is the biggest type of purchase made in a lifetime - and there is lots to consider. From choosing the right house/flat that you can make a home, to ensuring that you have covered all the fees and costs.

1. Your mortgage & other costs

ost first time buyers will need to take out a mortgage to cover most of the cost of the property, but a minimum deposit of 10% is usually required  in order to obtain a mortgage. There are other costs in addition to paying for the property, which can be easily forgotten. You will need to use a solicitor and budget for their fees and it would help to keep at least a couple of hundred pounds aside if you have furniture to move to pay a removal firm or just hiring a van. If the property is over £125,000, you will also need to factor in a cost for stamp duty.

Here is a list of fees that are likely to be unavoidable when buying your home along with average costs of each to help you to budget:

Mortgage arrangement fee - average £1,500 - not usually to be paid upfront.

Valuation survey carried out by mortgage lender - £200 to £400

Stamp duty (if property over £125,000) - amount to pay depends on property purchase price

Homebuyers report - approximately £250 to £500 on average

Buildings survey - £500 to £1,200 on average

Solicitor (conveyancer) fees - between £500 and £1,500

Moving costs (Removal firm or do this cheaper by just hiring a van) - average around £600

Before you begin your house search, find out your budget by working out how much savings you have and what proportion can be used as a deposit after budgeting for fees and costs as above, then take some time to find a mortgage (assuming this is required). Once you have peace of mind that you can obtain a mortgage of a certain amount then you can go ahead and look at properties surrounding that price range. Don't be put off viewing houses priced slightly above your budget, as some sellers will be open to offers and as the saying goes, if you don't ask, you don't get! Property listings on the popular property website Rightmove state when the property was first listed -  if the property has been on the market for a long time this could be a good indication that the seller may already be reconsidering the asking price, or may be more keen to accept a lower offer.

 

2. The location of the property

Property prices vary greatly depending on the area. If you find you are disappointed with what you can afford in a certain area which you had hoped to live in, consider compromising on the area if you need that extra bedroom or maybe look at cheaper properties that require updating and do the work as and when you can afford to do so to get the most space for your money. Once you have found a property that you like, go and view it more than once as chances are you won't take everything in on the first viewing and may not notice potential problems.

 

3. Commuting to work

Whilst considering area, think about how easy it will be to get to work. Most of us have to commute to work at a different location. It's likely that you are looking at properties near your place of work but it is worth considering whether you are likely to change your job in future. Sticking to rural locations may limit your work choices in future, whereas buying a home near good transport links may help. Moving house can be stressful for a lot of us as well as costly - you may be glad if you don't have to move house to find a job later on. Even if houses nearer city centres and towns are more expensive than surrounding areas, think about how much it would cost each week in petrol or train fares.

 

 

 

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