Buying your home
Buying your home is probably the biggest financial decision you will ever make. So take time to consider whether it is the right choice for you. For example, if you are a tenant who uses the Right to Buy scheme you will become responsible for all the costs of maintaining your home, including major structural repairs, routine repairs and improvements.
What costs are involved?
You also need to take the following costs into consideration:
- mortgage repayments
- mortgage protection insurance for if you fall ill or lose your job
- life assurance to enable your family to pay off the mortgage if you die
- contents and buildings insurance against the risk of theft, fire, flood or other accidents
- council tax and water charges
- gas, electricity, telephone, etc
- ground rent and service charges may apply
The process of buying a house is also costly, as you may need to pay for:
- a solicitor or licensed conveyancer
- an independent survey
- the mortgage to be arranged
- the Land Registry fee
- Stamp Duty
As a tenant, you may be able to claim housing benefit to help with the rent. As an owner-occupier, you will not receive any housing benefit to help with your mortgage costs. You may be entitled to income support to assist with housing costs, but this is not usually payable for nine months after you first claim it.
If you are elderly and own your home, its value may be taken into account in assessing whether you are eligible for financial help with the costs of residential care.
Beware!
If you are approached by a person or company offering to help you buy your home, check out what's in it for them and talk to Mossbank before signing up to any deal.
Some companies offer tenants money up front in a deal under which the company ends up owning the property after three years. This is good for the company, which can charge a higher rent than the local authority could when it let the property. But it is not always good for tenants, because the money they get may not be enough to buy another home. Some tenants have found themselves homeless after agreeing to such deals.
How can you find out more?
If you are interested in the right to buy scheme and want more information, contact the Home Ownership and Initiatives Scheme at Mosscare on 0161 226 4211 for more information. Alternatively please click the attachments below to download further information and the right to buy application form. You can also click here to find out more
How to buy your home Factsheet (26 KB)
Buying your home - Things to consider (19 KB)
Information on extra borrowing (45 KB)
