Buying a house in simple terms

Buying your first home is probably one of the biggest life decisions you’re ever going to make so it’s important to make sure you understand exactly what is going on. But with alien words such as council tax, insurance, mortgage and deposit flying around, it can be confusing to know what you’re getting yourself into. Luckily for you, we’ve put it in simple terms…

A mortgage

A mortgage is a legal agreement where a bank lends you money (with interest) to fund the purchase of a property. Applying for a mortgage usually takes two stages – working out the kind of mortgage you want and for how long and the application. When you receive a mortgage, you will be asked to sign a legal document known as a mortgage note which promises that you will repay the balance of your mortgage with interest over a course of time.

A deposit

The size of your mortgage will make a real difference to the size of deposit you have to save for. All Keepmoat homes are available to buy with Help to Buy, meaning that the government will essentially boost your savings by 25%! Find out how much your savings could be boosted with this savings calculator.

A warranty

These are meant to give peace of mind for the first few years after the construction of a property but be careful to ensure you read the small print when signing this as the developer may be able to wriggle out of carrying out the work if there is a loophole in the agreement.

Snagging survey

Before you move into your new home, conduct a snagging survey which will outline any issues that may present themselves later on. If your home is a new build, these are likely to be few and far between and your developer will be able to fix them in lieu with your warranty.

Building and content insurance

This is a packaged policy offered to homeowners which covers damage to the property and its contents up to a certain price. It is not necessary to choose both types of insurance for your home but a combined policy may end up being cheaper than having two separate ones down the line.

Have you considered all these legal documents whilst buying your first home?

About the Author

First Home News
The First Home News Editorial Team is made up of professional and amateur writers including several team members from our digital PR and social media specialist Prohibition.

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