By the end of this chapter you’ll understand:

✓ Whether you’re financially ready to buy

✓ The costs involved in buying your first home

✓ How to build a realistic budget

✓ The questions you should ask yourself before you begin

Estimated Reading Time: 6 minutes

For many people, buying their first home feels like the finish line.

After months or even years of saving, it’s easy to think that once you’ve built a deposit, you’re ready to buy.

In reality, a deposit is only one part of the picture.

Buying your first home is a long-term financial commitment, and before you start viewing properties or applying for a mortgage, it’s worth taking a little time to make sure you’re truly ready.

That doesn’t mean you need to have everything figured out.

It simply means understanding your finances, knowing what you can comfortably afford and feeling confident that buying a home is the right decision for you.

The better prepared you are now, the smoother your home-buying journey is likely to be.

Did You Know?

Buying a home involves more than just saving a deposit.

You’ll also need to consider costs such as solicitor’s fees, surveys, removal costs and, depending on the property and your circumstances, Stamp Duty Land Tax.

Planning ahead can help avoid unexpected surprises later in the process.

Before you start looking at properties, take a few minutes to ask yourself the following questions.

There are no right or wrong answers—but they can help you understand whether now is the right time to buy.

1. Do I have a regular income?

Mortgage lenders want to see that you can comfortably afford your monthly mortgage payments. Whether you’re employed, self-employed or have more than one source of income, having a stable income is one of the key factors lenders will consider.

      2. Have I saved enough?

Your deposit is an important part of your purchase, but it’s not the only money you’ll need. Think about the other costs involved in buying and moving home, and make sure you’ve left yourself a financial cushion once you’ve completed.

      3. Can I comfortably afford the monthly payments?

Owning a home comes with ongoing responsibilities. Alongside your mortgage, you’ll also need to budget for household bills, insurance, maintenance and day-to-day living costs. A mortgage should fit comfortably within your monthly budget—not stretch it to its limits.

      4. Am I planning to stay here for a while?

Buying a home is generally considered a longer-term commitment. If you’re likely to move again in the near future because of work, family or lifestyle changes, it may be worth considering whether now is the right time to buy.

      5. Am I ready for the responsibility?

Owning your own home can be incredibly rewarding, but it also comes with responsibilities that renting often doesn’t. From arranging repairs to budgeting for maintenance, you’ll be responsible for looking after your property and planning for the future.

When people think about buying their first home, the deposit usually gets all the attention.

In reality, there are several other costs you’ll need to plan for.

These can vary depending on your circumstances and the property you’re buying, but it’s worth considering things such as:

• Your deposit.
• Solicitor or conveyancer fees.
• Survey costs (if applicable).
• Mortgage arrangement fees (where applicable).
• Buildings insurance.
• Removal costs.
• Furniture and appliances.
• Utility set-up costs.
• Emergency savings for unexpected expenses.

Planning for these costs early can make moving into your first home much less stressful.