Finance

As we have previously commented buying a house is one of the biggest financial decisions you will ever make. Determining the amount of money you will have available to purchase your new home is a major priority. You must first establish how much you can borrow,the repayments you will be expected (and are able) to meet and any arrangement fees in setting up the mortgage.

Most property transactions will be mde up with finance from three sources-:

• proceeds of your existing home (if relevant)
• the amount of money (mortgage) obtained on finance
• any further contribution directly from you eg savings

It is important to provide for other essential costs of purchasing your new home including-:

• valuation,survey & legal fees
• stamp duty land tax
• costs of removal
• home & contents insurance
• repair & maintenance costs

You should analyse your current financial situation : where does your income come from,how secure is your employment and where does your money go ?

Prepare a budget based upon your current financial situation and analyse how the purchase of your proposed property will affect that budget.

It is important to be realistic in your budget preparation.You do not want to overstretch yourself financially.As the adverts say your home is at risk if you do not maintain the mortgage payments upon it.

There are hundreds of different mortgage products available from dozens of lenders.Take time to choose the mortgage that best suits you.Many financial websites allow you to compare different lending products.

http://www.charcolonline.co.uk/

http://www.mortgages-online.co.uk/

http://www.moneysupermarket.com/

Please contact us for further information.