How much can you afford for home purchases?
The most important thing with a mortgage, regardless of the type, is that you can afford the repayments. You need to be as confident as possible that you won’t encounter any financial difficulties that could result in repossession of the property. To begin with you should look at how much you can afford, both in terms of the upfront costs and the ongoing monthly fees. As a leading team for home purchases Bristol residents can rely on, the Your Space Independent Mortgages Bristol team is here to help with this.
Look closely at your finances
Firstly it is important to get a clear idea of your finances. Look at how much you earn, especially your monthly income. Then consider your outgoings and what you have left at the end of the month. In addition, think about your savings and what you can afford as a deposit.
You will need the details above if you apply for a mortgage. This is because lenders want to be confident that you can make the repayments. They have quite strict obligations to meet in determining affordability as well as whether it is safe to lend you funds.
How much can you spend on a property?
Setting your budget for the property itself is very important. For starters you need to ensure you can afford the deposit. Keep in mind that the more money you can put down the cheaper your monthly mortgage bill will be. In addition, remember you shouldn’t put everything you have into the deposit. After-all there are various fees you need to cover and you also may need funds for renovations.
Think about all of the upfront costs
There will be a myriad of different costs as part of the purchase. They can include:
- Survey fees
- Valuation fees
- Local authority searches
- Land registry fee
- Mortgage broker fee
- Solicitor’s fee
- Stamp Duty (in England and Northern Ireland)
- Land Transaction Tax (only in Wales)
The total for all of these could amount to thousands of pounds. Therefore it is important to ensure you have the funds available.
If you are struggling to decide how much you can afford for a home purchase we would be happy to help. Your Space Independent Mortgages Bristol is an independent broker that always works with the best needs of our clients in mind. We can look at affordability with you.
When they consider home purchases Bristol residents should rely on us to help them. We are just a call away and always offer clear, honest advice.