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Household bills you will pay as a homeowner

Metta Stockman


If you’re venturing into homeownership in Scotland, understanding the array of household bills you’ll encounter is crucial. Here’s a guide to help you navigate the financial aspects of buying your first property:


1. Mortgage repayments

Securing a mortgage is standard for most first-time buyers, entailing monthly payments to your lender. The amount you pay depends on factors such as loan amount, repayment period, and interest rate. Consider options like fixed-rate mortgages for stability or variable-rate deals for flexibility.


2. Factoring fees

Depending on your property type and location, budgeting for monthly or quarterly factoring fees is essential. These fees cover management and maintenance of communal areas, including land, stairways, and lifts. Review title deeds for ownership and maintenance details provided by your solicitor.


3. Home insurance

Protecting your home with insurance is vital. Consider a combined buildings and contents policy to safeguard against unforeseen events and liabilities. Ensure buildings insurance covers structure repairs, while contents insurance replaces damaged or stolen belongings.


4. Utility bills and tax

Gas and electricity expenses are inevitable for powering and heating your home. Review the Energy Performance Certificate (EPC) in the Home Report to estimate energy efficiency and costs. Council Tax funds local government services, while water charges vary based on property type and usage.


5. TV, broadband, and phone bills

Factor in costs for TV, broadband, and landline phone services, which can accumulate. Explore new customer deals and consider switching providers annually for savings. Additionally, secure a TV licence for legal viewing privileges.


6. Maintenance and homeowner costs

Anticipate expenses for home repairs and maintenance, crucial for preserving property value. Regular upkeep, including boiler servicing and decoration, minimises long-term expenses and enhances property appeal.


By understanding and budgeting for these essential household bills, you’ll be better equipped to navigate the financial responsibilities of homeownership.