It is important to consider the costs and responsibilities of buying your own home before making a decision to go ahead.  You should take your own independent advice before making any commitment.  Here is a list of some of the costs you have to pay for. 

Survey and legal costs

You will be responsible for your own legal costs and the costs of getting a mortgage for your contribution to the purchase price of the home.  When arranging a mortgage, you will normally have to pay the lender a fee. 

You will need to get a survey of the condition of the home and this cost will be in addition to the mortgage fee.  The housing association will not require you to get a full structural survey. 

Stamp duty

Stamp duty is a tax you may have to pay if the home you buy is above a certain price.  Your legal representative will inform you about any stamp duty. 

Land Registry

When you buy a home, your solicitor has to arrange for its details to be registered at a government office, the Land Registry.  You will need to pay a fee for the registration (your solicitor will tell you how much this will cost). 

Mortgage repayments

For your contribution towards the purchase price, you will normally need to take out a mortgage.  Most mortgages require you to repay the loan by monthly payments, which may increase or decrease if interest rates change.  The amount you can afford to borrow will depend on your income and savings.  An independent financial advisor will be able to explain the costs of different types of mortgage. 

Mortgage payment protection insurance

If at any time you become unable to meet your mortgage repayments because you lose your income through, for example, unemployment or ill health, your home may be repossessed by the mortgage lender. 

Help with mortgage repayments is available through the State benefits system but this assistance is limited and you are unlikely to receive any help with your repayments for the first nine months of your claim.  Depending on the size of your mortgage any benefit paid will help with your mortgage interest but not with other expenses on your mortgage or insurance. 

When you arrange your mortgage you should consider whether you would benefit from the security provided by Mortgage Payment Protection Insurance (MPPI).  There are many such policies available and their terms and conditions vary considerable.  You should seek advice from your lender and/or an independent financial adviser to find out whether MPPI will be of benefit to you and to decide on a policy that will suit your needs and give you the cover you require. 

Insurance

You will have to insure your home in case your property is damaged or destroyed by fire or similar disaster.  This is called Buildings Insurance.  As well as insuring the building, you may wish to insure your belongings and furniture.  You should take your own independent financial advice before making any commitment. 

Service charges

If you buy a flat or maisonette, you will have to contribute towards the upkeep of the building.  The person who owns the block of flats (called the freeholder/landlord) will be responsible for repairing and maintaining the outside of the building and any common parts.  The costs of work will be listed in a service charge, which each flat owner has to contribute to. 

Repairs

When you buy a home of your own, you have to pay for all repairs needed to the property. 

Services

You will need to pay for gas, electricity and water supplied to your home.  You will also be responsible for paying Council Tax.