Is buying right for me?
There's often a great sense of pride and achievement in owning your own home. And, of course, there’s the added advantage that it will hopefully provide some financial security at a later date. But is buying a house the best option for you?
The decision to get on the property ladder is a big one for first-time buyers and many struggle to get a mortgage. But the important question isn't can I get a mortgage?, it's can I really afford it?
Make sure you have talked to an adviser to discuss your options and what your monthly payment will be.
Should I buy or rent?
- Owning your own home gives you independence and a real sense of freedom
- You don't have to follow any rules laid out by a landlord
- It's your house and you can decorate it as you wish – and any improvements you make to your home could potentially add value to your property
- When your mortgage has been paid off, the property is yours
- If house prices generally rise, the equity on your property has the potential to increase (but remember, like any investment, prices can also go down)
- The average mortgage lender can ask for a deposit of up to 25% before giving you a mortgage. However, there are deals available for first-time buyers which only require a 5% deposit
- It's not always guaranteed that house prices will go up and there is always a chance that you might go into negative equity, where you owe more than your house is worth
- If you don’t keep up with your repayments, your home could be taken away from you
- Your monthly outgoings may increase dramatically after you buy your house
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE