But what you may not have considered are the additional costs which are part and parcel of buying a home.
For once you put in the offer there will be other financial outlays which could take you buy surprise. From the conveyancing bill to the removal costs, knowing the price of these additions in advance could avoid a nasty shock.
According to property finance specialist, Helen Hobbs, at Pure Property Finance, buyers regularly underestimate the additional expenses that arise between offer acceptance and completion. This can leave many scrambling to find the additional money at the last minute.
“Many buyers plan carefully for their deposit and mortgage,” she said, “but underestimate how many additional costs can arise once an offer is agreed.
“These hidden expenses often appear at the most stressful point in the process, which is why having a realistic buffer, and also the right advice early on, is so important.”
Hobbs has listed five of the most common costs she has to remind clients about:
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Home survey
A basic valuation is normally required by the lender to ensure the house is good enough for sale, Hobbs explained. However, she added, buyers may be better off spending slightly more on a more detailed valuation to save costs further down the line.
“The more detailed survey may uncover issues such as damp, roofing problems or even structural concerns, which may lead to either unexpected repair costs or renegotiations, potentially saving a bit on the price,” Hobbs explained.
“However, in some cases, buyers may choose to walk away all together if it seems too costly and too much hassle to fix.”
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Legal fees
Conveyancing costs should be factored in when saving for your home, but the exact sum to keep aside could be more than expected if there are problems or delays.
Hobbs said quotes provided are very much an estimate usually of what they think it’ll cost.
“Leasehold properties, gifted deposits, shared ownership and delays from the other party may mean that the chain can add a whole new layer of complexity,” she said.
“This means additional communications, and therefore, additional costs for the legal process.”
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Delays and mortgage rate changes
If there are delays, Hobbs warned, mortgage offers can expire and if rates have increased in this time you may end up with higher monthly repayments.
It’s a good idea to arrange your mortgage through a broker as they can support you through these obstacles.
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Bridging gaps between sale and purchase
“For some buyers that are trying to buy and sell their own home at the same time, timing mismatches can sometimes happen,” Hobbs said.
“This could mean a delayed sale, where short-term funding may be needed to secure the onward purchase. A lot of buyers don’t anticipate this happening when budgeting, but it definitely happens.”
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Moving and setup costs
Finally, don’t forget to factor in removals, storage, initial furnishing, white goods, and even simple tasks like changing locks. These items and services can can add hundreds or thousands of pounds to the final total.
Hobbs said: “While a lot of people do put money aside for furniture, it’s usually not half as much as they can expect to spend.
“Of course, not everything needs to be bought right away, but having money for essentials like a bed, mattress and fridge is absolutely key.”