To help you decide we've compiled a guide on buying your first house, including:
- Benefits of buying a house
- Can you afford the deposit?
- Can you afford the mortgage repayments?
- Buying with someone else (co-buying)
Benefits of buying a house
Buying a house is one of the most stressful events in our lifetime. However, despite the pitfalls and anxiety linked with when you buy a house, there are undeniable benefits. These include:
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The freedom to decorate and furnish as you wish
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Up to 30% cheaper than renting per year
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Security of tenure
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An excellent long-term investment
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Equity release schemes
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Greater choice over location, house type and size
Can you afford the deposit?
Have you saved the deposit needed to buy a house? The more of a deposit you have, the better the mortgage deal offered to you. For help and advice on saving for your deposit, read the whathouse.co.uk guide to saving for your first home
Can you afford the mortgage repayments?
Buying a house usually makes good financial sense but that doesn't mean you should buy a house that is the most expensive you can arrange finance for. With a huge range of mortgages, competition between lenders and low interest rates, many borrowers find themselves being offered vast sums of money.
However, interest rates can rise and, as they do, so will your monthly repayments. Failure to keep up mortgage repayments threatens your home so make sure they are affordable. As a rule, mortgage repayments should not exceed a third of your net monthly income. A mortgage calculator is a useful tool to see how much you can afford to borrow and repay.
Buying with someone else (co-buying)
The average age of first-time buyers is now around 30, partly because of rising house prices. This has driven many to buy with others, known as co-buying. Buying this way can ease the financial burden, and is increasingly popular.
For more information on co-buying, try Co-BuyWithMe.co.uk
Further reading
For a full explanation of the house-buying process see the whathouse.co.uk buying guide
This article was last updated on Wednesday 6 September 2006