How Much Does it Cost to Buy a House in UK?

Buying a house is one of the biggest financial decisions you'll ever make. Find out what you should know before buying a property!

£279,000 is the average price for a home in the UK. But there are many factors that affect the cost of a home, including location, size, type and condition of the property.
 

What I need to pay in addition to property price?

First of all you need to be able to pay deposit, usually is 10% of property value.
Next you need think about mortgage fee and mortgage broker fee what can be together between £800-2000, surveying cost is from £250, conveyancing can cost minimum £800, and also stamp of duty normally is between 2-8% up to property value.  So, in total you need to be ready to pay between £35k to £40k on the beginning if you want to buy property in average property price.

Know how much you need to borrow.

You will need to find out how much money you can afford to spend on a mortgage. This includes paying off any existing debts such as credit cards and personal loans. It also means finding out how much you can afford to pay each month towards your mortgage and also all cost including lawyers and mortgage advisors fee.

Understand the difference between a mortgage and an equity loan.

A mortgage is when you borrow money to buy a home. If you take out a mortgage, then you will usually repay the lender with interest over a set period of time. An equity loan is when you use your own money to purchase a property. Equity loans are often used by first-time buyers who do not have enough savings to cover the full cost of a deposit.

Choose the right area.

If you're planning to buy a home, you'll need to consider where you want to live. This will depend on your lifestyle, family size, and other priorities. You might want to choose somewhere with good schools, shops, transport links, and so on. Location is one of the main reason why price can be different, for example big house in small village can be much cheaper than small flat in London City center. 

Check the market value of properties.

It's also worth checking the current price of homes in your area. This will give you an idea of how much you can afford to spend. However, it won't tell you whether the property is likely to appreciate in value over time. To find out more about the current market value of houses in your area, check online real estate websites such as Zoopla.co.uk. or contact one of our advisors at Otium Estate Agents.