Most of the times you will need to arrange a mortgage before you are able to buy a house, however there is another option for this which is unless you are a cash buyer. A mortgage is basically a loan against the property and there is a variety of such loans that are available from building societies, banks and other lenders. It is best recommended that you look around and do your research first as the mortgage rates can vary and your objective is find the best deal you can. The primary concern here is; what can you afford? So it is wise to consult this matter with your financial advisor before you take any action.

When you consult your finances over with the mortgage lender, they will be able to help you work out how much you are able to spend on your future property based on your income level. In most cases the lender will give you what is known as an offer in principle which is basically the amount that they are prepared to lend you. Before you start looking for any particular home it is best that you get the offer in principle first, also there are other expenses that you need to be aware of such as the legal fess and moving costs.

The following is a list which you may need to budget for such as the deposit which is 5%-10% of the property value and if you take out a substantial mortgage, you may be asked to pay a mortgage guarantee premium, the cost of a building survey or homebuyer survey and valuation, the lender charges and mortgage repayment as well as the solicitor’s fees, including stamp duty, searches and land registry. There is also the possibility the cost of reconnecting the water, phone, gas and electricity, the redirection of the post as well as other forms of ongoing repairs and decoration.

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