You've done the maths, and reckon you can afford to take out a mortgage and buy your first home.
But have you considered the full cost of home ownership, beyond those monthly mortgage payments?
Answer 'yes' to these 6 questions and you’re probably a good fit to go ahead and apply for a mortgage.
- Are you good with money? Do you live within your means, spend sensibly and always have funds left in your current account when pay day comes around again?
- Do you have a big enough deposit saved? Have you managed to put away sufficient funds to meet the deposit requirements of your mortgage application? First Time Buyers need a deposit of at least 10 per cent of the purchase price of the property.
- Are your finances in order? Any outstanding loans you have can limit the amount you are able to borrow for your mortgage. Are you paying down your other borrowings as efficiently as you can?
- Can you afford the considerable additional expenses of a house purchase? Have you budgeted for the cost of stamp duty, house valuation, surveyor and legal fees, property tax and home insurance on top of your mortgage repayments?
- Do you earn enough to make your monthly mortgage repayments? Can you demonstrate that you can comfortably afford to repay the mortgage you are seeking?
- After mortgage repayments, will you have enough money to make a house a home? Will you have funds left over to furnish, decorate and run your home?
For more information on getting mortgage ready and top tips, signup to get your First Time Buyer e-book today.
