Is buying my own home right for me?

Most people would like to own their own home. The usual way to buy is to get a loan (called a mortgage). You then make monthly payments off the mortgage. Most mortgages for first time buyers are paid off over about 25 years. As house prices tend to go up in the longer term, buying a house can be an 'investment' that increases in value.

Home ownership can give you both choice and control. As a buyer you are largely in control of what property you get (as long you can afford it). If you keep up with your mortgage payments, it is you that decides how long you stay and when you want to sell.

It does have some possible disadvantages though. Home ownership is often very expensive, particularly in London. Not everyone can get a mortgage. A mortgage is a big responsibility. Depending on the type of mortgage you get, your mortgage repayment amounts could go up or down over time. If you lose your job or can't keep up your mortgage payments for some other reason, you could lose your home. If your house price has actually gone down - which can happen in the short term - then you could be left with a large debt.

Home ownership is most suitable as a medium to long term housing option.

The cost of buying a home will depend on a number of things:

• Where you want to live and the type of home you want (which will both determine the price). You can find out more on the Property Prices page: click here.
• The size and type of mortgage you get (which could be less if you have savings). You can find out more on the Mortgage Costs page: click here.

There are some low cost home ownership schemes (LCHO) that can make it cheaper for you. You can find out more click on the LCHO page: click here.

You can find out what YOU can afford on the What Can I Afford? page: click here.

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