First time buyer: How much to borrow and how much to pay

There may be difficulties for first time buyers who are trying to buy a house of their own. This can be proved by the fact that more than half of Britain's working population cannot afford to buy a home in spite of a strong desire. So it is necessary to gather some idea about the process of buying property for the first time. This article endeavours to provide direction to a first time buyer along with an estimation of the fees you have to pay.

The first important thing to be done by you as a first time borrower is to decide the amount you should borrow. It makes no point searching for the house of your dream unless you can afford the price range. Here comes the relevance of research. You have to approach several lenders and ask how much they will let you borrow.

The amount you can borrow as a first time buyer will depend on the size of your deposit and your income level. As a rule you can borrow around three times your annual earnings. But if you are buying as a couple the amount you can borrow will rise to three times the first income plus the second income, or two and a half times your joint income.

In addition to this there are some other costs which a first time buyer should be informed about. A first time buyer will have to pay a government tax called Stamp Duty if the property costs more than £120,000. Then valuation fee costing around £150. A first time buyer may also be charged an arrangement or completion fee. Then legal fees starting at £400. A first time buyer may also need to set aside money for insurance, moving costs and furnishing costs.

First time buyers are welcome consumer to the lenders. So it is necessary to make thorough research to go for a cost effective deal.

About The Author :The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Adverse-Credit-First-Time-Buyer as a finance specialist.

For more information please visit:http://www.adverse-credit-first-time-buyer.co.uk