Deciding to Buy

Deciding whether or not to buy your first home is a big decision. Is this the right time - or should you carry on renting?

Why buy a home?

Here are some advantages to owning your own home:

It belongs to you.

You can enjoy the benefits of having your own breathing space fitted out just as you like.

Peace of mind.

Rent usually increases each year, but if you buy a home you could opt for a mortgage that has an interest rate that stays the same for a fixed number of years.

Increased value.

Homes will usually increase in value over a period of time (although in some circumstances values have been known to fall). If you own your own home this is a great benefit, leaving you with what's called 'equity' in the property. In the future you could use this equity towards your next step up the property ladder or perhaps to make some home improvements. If you rent it's your landlord who will benefit from any increased value!

Avoid ‘dead’ money.

When you buy your own home you are usually aiming to become mortgage free. You make monthly repayments to chip away at what you have borrowed, building up equity as you go along. If you rent you'll have nothing to show for all those months or years of paying rent. This is why it's often called 'dead' money!

And here are some of the disadvantages...

Affordability.

It's important that you can keep up your repayments on your mortgage. If you don't your home could be repossessed - this means you lose your home and spoil your credit rating. Do your homework - take a look at the 'to do list'to get an idea of the upfront costs of buying your home and all the steps involved in making it happen.

Repairs.

If you rent your landlord is responsible by law to look after the general maintenance of your home but if you buy your own home it's your responsibility. That's why you need to get buildings insurance and why contents insurance is worth considering just in case the unexpected happens.

Only you know if you are ready to buy your first home.

If you think buying is right for you, go for it! To help you reach your goal it will really help to become as knowledgeable as possible about the home buying process, to know what to expect and when. The good news is you've already come to the right place to get you started - buyingyourfirsthome.co.uk

If you are ready, take the first step now:
Find out how much you can afford to borrow