суббота, 21 июля 2018 г.

Lesson 15. Buying a house

Although house prices may seem very expensive at the moment, you may one day in the future wish to buy a house.

Mortgages

Most people need to take out a mortgage which they usually pay back over 25 years. Interest has to be paid on the mortgage so it is important to shop around for the best deal.

Repayment mortgage

An amount is paid each month to pay the interest and some of the borrowed money. The monthly amount is worked out so that all the money is paid back after 25 years.

Interest – only mortgage

This costs less than a repayment mortgage because only the interest is paid back each month. This means that after 25 years you will still owe the same amount of money as you borrowed at the start.
You would have to save money to pay back the mortgage at the end or have another plan. If not, you would have to sell your home to pay back the mortgage at the end.

Deposit

If you save some money towards your new home before you buy it, your mortgage payments will be smaller. Often if you have at least a 5% deposit you will get a better deal on the mortgage interest rate.

Hidden costs

Stamp Duty

Money paid to the government when a property is bought.

EXAMPLE:

If you buy a flat for £90000, you have to pay stamp duty of 1% of £90000 to the government. That is £900.

At the time of writing,              stamp duty

property worth up to £60000 – no stamp duty
             £60001 to £250000 – 1% of the cost of the property
           £250001 to £500000 – 3% of the cost of the property
               more that £500000 – 4% of the cost of the property

Solicitor

You have to pay a solicitor to make sure there are no legal problems with your new property.

Surveyor

You need a surveyor to check that your new property is safe and  will not cost you expensive repairs in the future.

 Test lesson 15
Other lessons:

Lesson 1. Wages
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