If you’re staring at a listing for a £700k house, you might wonder if it’s realistic for you. The price sounds big, but breaking it down makes it manageable. In this guide we’ll look at what that price includes, how to finance it, and what hidden costs to expect. By the end you’ll have a clear picture of whether a £700k home fits your plan.
First, remember that the headline price is just the start. Location plays a huge role – a £700k flat in central London will be very different from a house in the Midlands. Check the local market: compare recent sales, see if the price is in line with nearby properties, and ask why the seller priced it that way.
Next, think about the size and condition. A brand‑new build will have a higher price per square metre than a fixer‑upper. If the house needs renovations, factor in the cost of work and the time it will take. A rough rule is to add 10‑15% of the purchase price for a moderate renovation budget.
Don’t forget the extra fees that pop up when you buy. Stamp duty, legal fees, survey costs, and moving expenses can add up to 5‑7% of the purchase price. On a £700k home that’s another £35k‑£50k you need to plan for.
Most buyers will need a mortgage. Lenders usually require a deposit of at least 10% – that’s £70k for a £700k purchase. Anything higher lowers your loan‑to‑value (LTV) ratio and can get you a better interest rate. If you can put down 20% (£140k) you’ll likely qualify for the best deals.
When you apply, the bank will look at your income, outgoings, and credit score. A common rule of thumb is that your total mortgage payments (including interest and any other debts) should stay below 35% of your gross monthly income. Use an online mortgage calculator to see how different interest rates affect your monthly payment.
Assuming a 4% interest rate on a 30‑year mortgage with an 80% LTV (£560k loan), your monthly payment would be around £2,670. Add council tax, utilities, and insurance and you’re looking at roughly £3,300‑£3,500 each month. Make sure your budget can handle that comfortably.
Don’t forget to explore government schemes. In some parts of the UK there are Help to Buy or shared‑ownership options that can lower the amount you need to borrow. Even if you don’t qualify, the research can spark ideas for how to shrink the financial gap.
Finally, shop around for mortgage deals. A small difference in interest rate can save you thousands over the life of the loan. Talk to several lenders, check their fees, and ask about fixed‑rate versus variable options. A fixed rate gives you certainty for the first few years, while a variable rate might be cheaper if rates stay low.
**Bottom line:** a £700k house is achievable if you know the true cost, have a solid deposit, and choose the right mortgage. Do the math, include all fees, and compare offers before you sign anything. With a clear budget and realistic expectations, you can step into a £700k home with confidence.
