Think about the costs involved

Owning your own home can be expensive and only you can know if buying your own home would be the right decision for you.  If you want more advice, you can contact Your Homes Newcastle, a Citizen's Advice Bureau or a solicitor – though a solicitor may make a charge for this.

Mortgages

As well as the initial purchase price there are numerous other costs to consider when buying your home.  Firstly, unless you are buying your home with cash, you will need a mortgage, which will have to be repaid with interest.  There are an almost endless number of different mortgage packages available and you should think carefully about which would be the right one for you.  For advice on mortgages you can visit any bank, building society or financial advisor.  If you cannot keep up the repayments on your mortgage your lender may go to court to apply to take over your home.  The Council is not obliged to offer you another tenancy if you lose your home in this way.

One-off costs

There are also several one-off costs normally incurred during the purchase of a property which would be your responsibility:

• A solicitor or licensed conveyancer to look after the legal side of the purchase
• A property survey
• Most banks and building societies charge for arranging a mortgage, and also for the valuation of the property that they are obliged to carry out
• Once the sale is complete you must register with the Land Registry as the new owner of the property
• Stamp duty has to be paid on any property purchases costing more than £125,001 – this is 1% of the purchase price
• Zero rate up to £250,000 for first time buyers until 24 March 2012

Other commitments

In addition to a mortgage, there are also many other regular costs which home owners normally have to pay:

• Water rates
• Council tax
•  Buildings insurance
• Contents insurance
• Repair and maintenance costs

Housing Benefit

If you buy your house you will not get Housing Benefit. Even if you are on Income Support you will not get any help toward the cost of the mortgage repayments. If you have been receiving income support for thirteen weeks you may qualify for help but only toward the interest on the mortgage.  If you do not keep up to date with your mortgage payments you may lose your home.