Buying a house is a complicated process. Below is a list of words and phrases that will come up as you go through the process.
A mortgage is like a king-sized loan you use to pay for a new house. Mortgages are repaid over a long period of time and are secured by the property you bought with it – meaning, if you don’t keep up with repayments, the mortgage provider is legally allowed to repossess your house from you.
Stamp Duty Land Tax
Stamp Duty Land Tax is a tax you pay if you buy a property over a certain price. The amount varies according to the price of the property and how many properties you own.
Council tax is a tax that you pay to your local authority, e.g. Manchester City Council, in order to pay for local services such as schools, libraries, and rubbish collection.
Some people are exempt from paying council tax and others may be eligible for reductions.
A home insurance policy can protect your home and belongings in the event that they are damaged or stolen. Although home insurance is not a legal requirement, sometimes it may be required, for example if you’re taking out a mortgage.
If you are renting, you only need to cover your belongings, as the landlord should cover the building itself.
If you live in a household in an apartment block or shared setting which has communal benefits you may be asked to contribute money towards the upkeep.
E.g. Nathan lives in an apartment with a communal garden. Alongside fellow residents, he pays a service charge to cover the cost of maintaining the garden.
Warm Home Discount Scheme
This is a government initiative that allows for one-off discounts on electricity bills. If eligible, you can get a £140 discount.