Censeo Financial: How much do I need to cover the cost of buying?

The experts help navigate the financial aspects of homeownership

Introducing Censeo Financial

Censeo Financial are an award-winning mortgage broker specialising in Shared Ownership and affordable homeownership. Having been trading for over 16 years, we work with many housing associations, councils and developers and have helped thousands of first time buyers get onto the property ladder. We have access to all lenders who offer Shared Ownership mortgages and often get exclusive deals that you wouldn’t get from going to a lender direct.

We understand the importance of providing a friendly and helpful service and have achieved 98% five star Google reviews in the last 12 months – we strive to offer the best service possible and to find our customers the best mortgage for their personal needs saving time and money.

The breakdown

Deposits

You may have been saving for years to buy a home, so you want to make sure you know the full extent of costs to do so. To buy a property you need money to cover the cost of the legal expenses, mortgage arrangement fees, valuation, moving costs and maybe even furnishings. You will also need a deposit for your mortgage, and you will need some money as a reserve fund for unexpected bills.

Costs will vary depending on the area you are looking to buy in, and the price of property you are interested in buying, so it is very difficult to say exactly what you will need. The size of the deposit will be reflected by the interest rate available. The higher the deposit the lower the interest rate. You can find out more here.

Gifted deposits

A gifted deposit is a sum of money given to the buyer as a gift from a family member or close friend to help them purchase a property. The gifted deposit can be used to cover part of the buyer’s share of the purchase price, or the deposit needed to secure a mortgage.

The gifted deposit must be declared to the housing association and the mortgage lender, and they will need to see evidence of the gift and the donor’s identity. The donor will also need to sign a letter confirming that the money is a gift and that they do not expect to be repaid or have any ownership rights in the property.

It is important to note that some housing associations may have restrictions on the use of gifted deposits, so it is best to check with them before proceeding with the purchase.

Mortgage brokers

Mortgage brokers will charge a fee to provide you with professional advice and guidance on the best mortgage for your personal situation. They have access to all lenders and can provide mortgage products that cannot be found on the high street and only secured through a mortgage broker. Having access to all of the mortgage market can save you time and often money. In some instances, there may also be a product and valuation fee to pay – again check with your mortgage broker as this varies from lender and product.

Legal expenses

You will need a solicitor to act for you. Many solicitors in the Shared Ownership market offer a fixed fee for their services, however the disbursements will vary. It is best to request a quotation from a couple of solicitors who will provide a breakdown of all the costs. Some of the costs may need clarification, so call them to discuss before instructing them to act on your behalf. You may also have Stamp Duty to pay – again ask your solicitor so that you can budget.

Moving costs

Moving costs can vary depending on how far you are moving and how much furniture, furnishing you must move. Many of you may have furniture to buy and remember window furnishings and all those smaller items – they all add up! Whatever you do, don’t take out any loans or run up credit cards as some lenders may check this before releasing any money and this could mean your loan has to be reviewed. It’s better to keep some of your savings to allow you to buy these items.

Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home-buying schemes such as Shared Ownership via our article index.