First time buyer

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First time buyer

Postby dipsydoodlenoodle » Thu Apr 02, 2009 1:44 pm

Ok, I'm looking to buy a house within the next few years. I have actually seen one I quite like and probably could afford on my own.

My questions are when buying a house for the first time (or any time for that matter) what costs are involved and roughtly how much are they? I know there are solicitors, stamp duty, deposit, surveys etc? Just wondering can anyone shed some light onto the matter please :)
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Re: First time buyer

Postby RagDoll » Thu Apr 02, 2009 2:11 pm

My boyfriend just recently bought our house, so I should remember the exact figures that were involved more than I do, but here are the main things you have to fork out for:

1. Deposit - 10% of the overall cost usually

2. Solicitors as you rightly said - shop around as some are very expensive!

3. Stamp duty might not be relevant; it depends how expensive the property is

4. Surveys - from what I recall there are three types of survey you can have once your offer has been accepted - a basic valuation, a homebuyers survey or a structural survey. The middle one is the one most people go for (and is also in the middle with regards to cost), but it depends on the type of property you intend to buy

5. If the survey highlights issues with regards to the house, for example, that the roof needs repairing/there are damp problems etc. and you're still interested in purchasing the property despite this (no house is perfect!) then it's a good idea to get quotes for this work after your offer has been accepted, but before you've bought the house. You can use the quotes as a lever to knock more money off the house and even if that doesn't work, you'll still know how much you can expect to pay in order to make the repairs once you own the house. My only word of warning is that some companies are reluctant to give you free quotations when you don't own the house so it can be a bit of a battle. It's worth it in the end though!

I'll ask my boyfriend for the costs involved and get back to you.
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Re: First time buyer

Postby Bel Bel » Thu Apr 02, 2009 2:31 pm

you can get solicitors to give you and all in quote to cover the cost of buying
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Re: First time buyer

Postby dipsydoodlenoodle » Thu Apr 02, 2009 3:04 pm

RagDoll wrote:I'll ask my boyfriend for the costs involved and get back to you.


That'd be great. Thanks :)
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Re: First time buyer

Postby Weasley » Fri Apr 03, 2009 12:29 pm

When me and my ex bought our house we bought brand new with Barrats as they offered us no deposit and free carpets and electrical appliances etc.

We paid around £3000. That included solicitors fees and stamp duty (usually 1% of the cost of the house - they charge this on everthing over £60,000.)

Because we did it through Barrats they provided mortgages advisors FOC and also 2 valuations (and they both undervalued the house just before we were about to complete meaning a long battle with Barrats and £20,000 been knocked off the price of the house!)
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Re: First time buyer

Postby dipsydoodlenoodle » Fri Apr 03, 2009 12:51 pm

Thanks; a new house wouldn't be an option for me - the only new houses they are building in my area are slap bang in the middle of a dodgy council estate.

I've been doing searches in my price range and 2 of the 7 houses so far are in my street now! haha.
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Re: First time buyer

Postby rufio89 » Fri Apr 03, 2009 12:51 pm

Stamp duty has changed this year - you dont have to pay up to the value of £175k xxx
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Re: First time buyer

Postby dipsydoodlenoodle » Fri Apr 03, 2009 12:52 pm

rufio89 wrote:Stamp duty has changed this year - you dont have to pay up to the value of £175k xxx


I had read that but I assumed the site was old.

That is good news for me; thanks Ruth :)
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Re: First time buyer

Postby dipsydoodlenoodle » Mon Apr 06, 2009 10:29 am

OK I have a new question regarding this issue; how much in bills do people pay on average a month (if you don't mind telling me of course), not including rent/mortgages?

I've asked my mam to help me write a list but I think her list may be being too generous on bills, but if it is true then I wouldn't be able to affod it on my own :( so I'm just asking so I know.
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Re: First time buyer

Postby rufio89 » Mon Apr 06, 2009 10:40 am

Council tax really varies from place to place, I think ours is about £120 a month, but you can pay annually.

Mortgages again will vary depending on what the value of the property is. Lets say you're buying a house worth 100k, with a 10% deposit, and you borrow over 25 years, at 7% interest (it's not likely to go over that in the next few years) you'd be paying about £525 a month on interest only.

TV Licence is £142 a year

Gas/Electric - We live in a 2 bed semi, and for the last quarter we paid £200 gas and £100 electric, so about £100 a month on these (although my housemate is a MASSIVE heating and electricity cheapskate).

Then food - I spend about £100, but you can easily do that cheaper.

Phone/Internet/Sky etc - about £30, if you want those things.


I dont know if I've missed anything
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Re: First time buyer

Postby Bel Bel » Mon Apr 06, 2009 11:05 am

Here is a list of things to consider, it's difficult to give you costs for things like the mortgage but there are online calulators that can give you the answers, just google it

Council Tax- you can check with your local concil the band costs

water rates - if you move now you will automatically have a water metre fitted, allow £25 to be safe, often the first year is estimated and may be lower but they usually adjust it and then raise the bill so be aware it can suddenly jump after 12 months

TV/phone/broadband - get a package that includes all and go for free evening and weekend calls so you never add to the bill

TV license - you have to declare all colour tv's

life insurance - you should get if you have a mortgage

building and contents insurance - should be £20 max go to comparethemarket.com to get best deals

mortgage - use an online calculator to check costs

spending money - you need to budget this to include allowance for birthday present, mums day, xmas etc. I save a set amount each month so xmas is easier to cope with

Elec and Gas - again go to a compariosn site and get them both together and pay by direct debit for best deals

Petrol and car insurance - plus put aside an amount each month for car tax/ mot/ repairs

Any catalogue, credit card payments

You may wnat to think about something like British Gas Homecare which covers all breakdowns on central heating, pipes, electricity etc. Other companies do similar schemes
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Re: First time buyer

Postby dipsydoodlenoodle » Mon Apr 06, 2009 11:10 am

The phone/internet and sky I don't need.

I have my mobile so I don't "need" a landline. The two houses I've looked at are within the same street as my parents who have wireless; I could pay half and just use theirs (it's only £5 a month anyway) and as for sky I rarely watch TV. I do have freeview on my TV so it's not a total loss.

The only things I have to pay out now are car; £229 a month (I could pay it off in full if it would make a big difference; my dad recommended I keep it going), my phone £30 and phone insurance £8.99 which I am going to get rid of now - I only wanted it getting a new phone before Christmas.

Bel Bel wrote:mortgage - use an online calculator to check costs


I have. They recon £700 a month!!!! I'd rather go and speak to people to find out all the options since I don't understand anything about them really.
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Re: First time buyer

Postby rufio89 » Mon Apr 06, 2009 11:19 am

Whats your house budget dispy?
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Re: First time buyer

Postby dipsydoodlenoodle » Mon Apr 06, 2009 11:21 am

The ones I've looked at are £115K and £119K but since they've been sold and are both back on the market I could offer quite a bit lower.

All the houses within my range are ex-council houses in the middle of council estates or dumps!
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Re: First time buyer

Postby RagDoll » Wed Apr 08, 2009 11:19 am

Dipsy, sorry it's taken me ages to post about the costs. I've asked my boyfriend and he reckons it cost between £500 and £600 for the solicitors fees and homebuyers survey. That doesn't sound right to me though so I'll check at home haha.
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