FAQ
Am I Ready to Be a Homeowner?
Before buying, check if you have a deposit of at least 5–10% of the property price, stable income, and manageable debt (ideally debt-to-income ratio below 4.5x). Factor in extra costs like Stamp Duty, legal fees (£1,500–£3,000), and surveys.
In early 2026, with mortgage rates stabilising around 4–5%, buying often makes sense if you plan to stay 5+ years. Use affordability calculators from MoneyHelper or lenders to assess your situation.
Is Renting or Buying Better?
In the long term (5+ years), buying is usually more cost-effective as you build equity and benefit from potential price growth. Renting offers flexibility and no maintenance worries, but you don’t own the property.
Current costs: Buying includes a deposit, Stamp Duty (no tax on first £125,000 for most buyers; first-time buyers pay nothing up to £300,000), and fees. Renting often takes 30–40% of income, though the Renters’ Rights Act (from May 2026) will increase tenant protections and security.
What Is the Lender’s Formula?
A Mortgage in Principle (MIP) is a free letter from a lender stating how much you could borrow, based on your income, credit check, and deposit. It’s valid for 3–6 months and shows sellers/agents you’re a serious buyer. In today’s competitive market, having an MIP is highly recommended before viewing or offering
Do I Need a Home Warranty?
New-build homes often come with a 10-year warranty, but for most properties, you need Buildings Insurance from the exchange of contracts (compulsory). Contents Insurance is strongly recommended to cover your belongings. Standard home warranties aren’t usually required in the UK
Am I Ready to Rent?
Yes, if you can afford 3–6 months’ rent upfront (including deposit, usually 5 weeks’ rent), plus moving costs, and have stable income. From May 2026, the Renters’ Rights Act removes Section 21 “no-fault” evictions, ends fixed-term contracts, and gives more security (e.g., rent increases limited to once per year with two months’ notice)
What Should I Offer?
Proin gravida nibh vel velit auctor aliquet. Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Duis sed odio sit amet nibh vulputate cursus.