Setting Up a Home

Setting Up a Home

Setting Up a Home

A home is at the top of almost everybody's priority list in financial planning, whether they are renting or buying.

The financial considerations can be complex and hard to understand; these pages should shed some initial light on the area. Some people decide that buying a home is not for them — either through choice or through financial necessity. This is particularly the case where the rapid rise in house prices has led to younger people being priced out of the market.

Buying or Renting

In 2002, there were nearly 17.9 million homes owned by their occupiers, and just over 7.7 million rented homes in the UK. Whether you buy or rent depends on a wide variety of factors such as your financial situation, lifestyle and personal preference.

Purchasing a home

Your home is almost certainly the largest single investment you will ever make in your life. However, it is not just an investment, its primary function is to provide you and your family with somewhere to live.

Financing Options

Because relatively few of us have the ready cash to buy a house, we have to raise finance to buy a house. A loan that is secured on property is called a mortgage. There are many suppliers of mortgage finance, of whom the most common are banks and building societies.