Planning

Case study: A couple buy their first home

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The costs for Laura and Jamie to move in together

Laura Shuff, aged 22, works as a trainee accountant for a firm of chartered accountants in Sidcup, Kent. Her fiancé, Jamie Francis, 25, is a trainee PE teacher. They plan to marry in two years’ time and moved into their first home – a two-bedroom house in Dartford – in July 2011.

Overcoming their homebuying hurdles

Laura and Jamie were living with Laura’s parents in Eltham, south-east London, when, in 2009, they decided to buy their own place. Although they got there in the end, the homebuying process wasn’t quite as straightforward as they had originally hoped.

Even with the income from two people, the couple were surprised to find that their deposit and combined earnings were not enough to afford the size of mortgage they were looking for. After spending some time initially exploring their options with a few different lenders they decided to rethink their plans.

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Jamie took a second job as a football coach to increase the size of their deposit; both sets of parents chipped in too, and eventually the couple's persistence paid off. They found a mortgage they felt comfortable with and, in February 2011, they had an offer accepted on their dream home – a two-bedroom Victorian terraced house in Dartford costing £157,000. “It’s relatively small, but it’s perfect for us and it’s wonderful to have our own place,” says Laura.

The mortgage deal they ended up with was fixed for two years because it was important for the couple to have certainty about their monthly repayments, which are £750 a month.

Coping with hidden costs

So how did they cope with all the additional costs of becoming homeowners? “We did quite well on our legal fees, because we used an online conveyancer that was 50% cheaper than our local solicitor,” explains Laura. “It cost us £500 rather than £1,000, which was great because we not only saved money but we could also log in and get online updates on progress.”

They didn’t have to spend much on doing up the house, which was in good decorative order. Shortly before moving in, they held an engagement party and were given vouchers, which they used to buy household appliances.

Other costs, however, are not so easy to deal with. “Our council tax is £1,200 per year and, I must admit, I’m not entirely sure how this money is spent,” says Laura. “I’m just glad I always asked what council tax band the properties were in when we were doing viewings, as it could be a lot higher.”

Laura and Jamie’s key tips for first-time buyers

  • Consider using an online conveyancer, as this could be cheaper than going to a solicitor.
  • At viewings, ask what council tax band the property is in, to ensure you factor this into your monthly outgoings.
  • Pay fuel bills by direct debit to spread costs evenly throughout the year and avoid payment spikes during cold weather.
  • Think about taking on a second job to boost earnings while saving for a deposit and to help meet the costs of furnishing your home.

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