Money: TIME TO MAKE YOUR MOVE; How to join the 4 million putting a

YOUR parents are driving you mad, you've met the love of your life...or you're just fed up with renting.

Whatever the reason, you have decided it's time you became one of the four million people in Britain - average age 28 - who are buying a home of their own for the first time.

But where do you start?

The first step is a budget. Work out what you can afford and how you can raise the money for a deposit.

The average cost of a first-time buyer's home is now pounds 114,000 - up from pounds 93,500 last year. But that's not the only outlay you have to think about. You should set aside around pounds 2,500 for solicitor's fees, arrangement fees and a survey.

Traditionally, lenders would only let you have three times your wages.

But because house prices have recently risen above the rate of inflation, they will now lend more.

Some lenders will offer 100 per cent mortgages - and help consolidate any debts you may have, such as student loans. Once your budget is worked out, you can start house-hunting. Decide on an area, look round estate agents and buy local papers. The Internet has some good websites worth checking - www.assertahome.com, or www.08004 homes.com.

Once you've seen your dream home, look for a mortgage. Read up on the types available - such as variable, capped, discount and fixed - and check out the rates (Alliance and Leicester have the best rate for flexible mortgages at 5.24pc).

Your estate agent may be linked to an independent financial adviser. Listen to what they say, but go away and think about it before you commit yourself.

Websites are a great source of information on mortgages - try www.charcolonline.com, www.virginmoney.com, www.moneysupermarket. com and www.money extra.com

Talking to your high street bank or building society will also give you a clearer picture of what to go for. The main points to be aware of are tie-ins - how long you must stay with the mortgage. If you decide to leave before this time there will be heavy penalties to pay.

If they are offering a discounted or fixed rate, find out how long it is for and what rate you switch to when it finishes.

Once you have decided which mortgage you want, you have to pass a credit check.

Then the mortgage company will need to do a survey to see if there are problems with the house.

If it is all clear, the mortgage will be approved and a copy of the deal sent to your solicitor.

You can find a solicitor through your mortgage company, your estate agents or in the Yellow Pages - but the best way is a recommendation through a friend.

There are also online conveyancing firms who are trying to shorten the time it takes to complete the sale - it is usually an average of 12 weeks, but www.legalmoves.com will take a third off this.

The solicitor's costs will probably be around pounds 800. On top of that is the fee for the lender, which should be about pounds 300. And there is also the survey, which should be about pounds 400, but will vary according to your property. The biggest extra expense will probably be Stamp Duty which is currently one per cent of the price of the house, up to pounds 250,000.

This may not seem much, but as the average price of a house is now pounds 83,000, the bill for stamp duty will come to pounds 830.

Buildings insurance is compulsory (if you are buying a leasehold flat this is likely to be paid from the annual service charge).

Contents insurance, accident, sickness and unemployment insurance and other protection policies will also add to your monthly outgoings. Once you have finished all the paperwork, the solicitor will then arrange a completion date.

This is the day when you can move in - and finally have the satisfaction of turning your own key in your own lock.

Our deal came with a discount

ADMINISTRATOR Nicola Trowbridge, 20, and her fiance, electrican David Pearson, 23, are in the process of buying a pounds 100,000, three- bedroom house in Eastleigh, Hampshire.

"David and I stayed with my parents while we saved for a deposit," said Nicola.

"We put aside pounds 10,000 in seven months. When we found our new home the next move was to get a mortgage.

"We looked at deals from all the major banks and building societies. They all recommended a repayment mortgage, but the offers varied a lot, from fixed-term to discounts.

"Eventually we went for a discounted mortgage which we got from Alliance and Leicester.

"The discount is three per cent in the first year, two per cent in the second, one per cent in the third and 0.5 per cent in the fourth.

"I think we've got a really good deal."

We tracked down our mortgage on the Net

MOBILE phone engineer Nigel Dunn, 29, and his journalist partner Nicky Walker, 28, bought their one-bedroom Victorian flat in Reigate, Surrey, for pounds 117,500.

Nigel said: "We only flat- hunted for two days, which I know is very lucky. It then took us nine weeks to complete.

"The first thing we did was look for a mortgage. We bought some magazines - Which! and Your Mortgage - and read up on the subject.

"We went for a fixed repayment mortgage because we wanted to know exactly how much we were going to be spending each month. We also wanted something that had no ties as we may want to move in the future to a different company - especially if we join the euro and can get a European mortgage.

"We already had a deposit of 15 per cent. We then logged on to the Internet to look at the different deals available for the amount we needed - pounds 99,450.

"The best deal was from John Charcol with Halifax MSL - a fixed rate for two years of 5.69 per cent, no tie-ins and the opportunity to extend the fixed rate after the two years.

"My advice to first-time buyers would be to look on the Net. It has loads of deals you might not come across if you just go to the high street."

5 top tips

1 GET advice from a fully-qualified mortgage adviser.

2 SAVE enough for solicitor's fees, stamp duty, valuation fees etc.

3 DON'T overstretch yourself. You don't have to borrow the maximum.

4 ASK what happens after the fixed, capped or discounted period.

5 KEEP calm.

WHAT IT COSTS

ON a pounds 83,000 house expect to pay pounds 800 in solicitor's fees, (including a local authority search, and land registry fees), Stamp Duty of pounds 830, about pounds 350 for a survey and around pounds 300 in fees to your lender. Total: pounds 2,280.

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