Things to consider before purchasing a property

There is a lot to consider when buying a property, like having a deposit and being eligle for any government schemes. Come and talk to us, we can help you through the process.

1. Ensure you have the funds available to pay the deposit. Some of the new ISA savings products will only pay out on completion. The mortgage funds will be made available on completion. Thus, you have to have separate savings available to pay the exchange deposit which is usually 10%.

2. Factor in Stamp Duty Land Tax (SDLT). To assist you our website has a SDLT calculator that will show you how the amount due has been calculated.

3. Don't forget about other costs. Solicitors costs as well as disbursements for searches, Estate Agent fees, mortgage application fees, and valuation fees can all add up to a significant additional cost.

4. Know whether your family can help. The bank of Mum and Dad, or grandparents are frequently called on for help to get on the property ladder or moving up it.

5. Have evidence of your deposit. These may be your own deposit account statements or be proof of the source of a gift from a close family member. Lenders each have a definition for who they will accept as a close family member, and the family member will need to confirm that it is a gift and not a loan.

6. Stay in your price range. There is little point in looking at property that you are unable to get a mortgage for.

7. Check of your eligible for any of the government schemes set up to encourage home ownership. Help to Buy and Shared Ownership being two of the main ones.

8. Apply for a mortgage in principal. These can prove to estate agents and sellers that you are able to borrow and a serious purchaser.

9. Understand how much you can afford. Lenders are legally required to ensure you can afford the payments for the mortgage they offer you. And a full evaluation of your commitments and spending versus your income will be undertaken to satisfy lenders that the mortgage offered is affordable for you.

10. Consider your financial protection. Now that you have started or moved up the property ladder, you need to consider taking out protection to ensure the property continues to be available for you or your family's needs. If you have a family, what would the impact be on the family's finances if one of the parents died? What would the financial impact be if the main income earner was unable to work? Most people start off by thinking “it won't happen to me”, but the reality is it does happen to someone – how can you be sure it won't happen to you?

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.