Get Your Finances in Order

Prepare for a Smooth Home Buying Journey

Buying a home isn’t just about browsing beautiful properties — it starts with strong financial foundations. Whether you're a first-time buyer or a seasoned mover, having your finances in order can make or break your home buying experience.

At Estazza, we’re here to guide you through every step — from budgeting and deposits to mortgages and credit checks — so you’re financially prepared when the right home comes along.

1. Understand What You Can Afford

Before you fall in love with a property, you need to know what’s realistically within your reach. Start by calculating:

• Your monthly income
• Fixed expenses (bills, loans, childcare, etc.)
• A comfortable monthly mortgage payment range

Use online affordability calculators or speak with a mortgage advisor to get an early sense of your budget.

2. Start Saving for a Deposit

Your deposit is one of the biggest upfront costs when buying a home. In most cases, you'll need at least 5–10% of the property’s value as a down payment.

For example:

• On a £250,000 home, a 10% deposit is £25,000
• A larger deposit (15–20%) could help you access better mortgage rates

EstazzaTip: Open a Lifetime ISA (LISA) if you're eligible — it gives you a 25% government bonus on savings up to £4,000 per year.

3. Check and Improve Your Credit Score

Your credit score plays a key role in how much you can borrow and the mortgage deals you’ll be offered.

How to improve it:

• Pay bills on time and reduce credit card balances
• Register on the electoral roll at your current address
• Check for and correct any errors on your credit report
• Avoid applying for new credit shortly before applying for a mortgage

Use free services like Experian, Equifax, or ClearScore to monitor your credit health.

4. Get a Mortgage Agreement in Principle (AIP)

A Mortgage Agreement in Principle (also called a Decision in Principle) is a statement from a lender confirming how much they’re willing to lend based on your income and credit profile.

Having an AIP:

• Strengthens your position with sellers
• Helps you understand your upper budget
• Shows estate agents you're a serious buyer

Note: It’s not a binding offer, but a strong first step in the mortgage process.

5. Plan for Additional Costs

The deposit isn’t the only cost involved in buying a home. Make sure to budget for:

• Stamp duty (if applicable)
• Legal fees and conveyancing (usually £800–£1,500)
• Survey costs (£300–£1,000 depending on level)
• Moving costs (removals, storage, packing supplies)
• Mortgage arrangement fees
• Furniture or repairs after moving in

Creating a realistic financial plan now will prevent surprises later.

6. Speak to a Mortgage Broker or Advisor

A qualified mortgage advisor can help you:

• Compare mortgage deals across the market
• Understand different products (fixed-rate, tracker, interest-only, etc.)
• Submit your mortgage application with the right documents

Many brokers are free to use and only charge if you take a deal through them. Make sure they’re FCA-authorised.

Final Thoughts

Getting your finances in order may not be the most glamorous part of buying a home — but it’s the most powerful. With a clear budget, solid savings, and an agreement in principle, you’ll be ready to act when the perfect property hits the market.

At Estazza, we’re here to support your journey with helpful guides, smart tools, and expert advice. Because a confident home search starts with financial clarity.