If you are considering buying a house, either on your own or with a partner or friend, it is essential to spend some time in advance working through your finances to see exactly how much you can afford. Not only it is vital for your own peace of mind, ensuring you won’t be left completely broke by your purchase, it will also be a requirement from the mortgage lender to do so.
This does not constitute advice and advice should be sought in all instances before acting on it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Disposable income – what’s left at the end of the day
When people refer to “disposable income” it simply means what you have left after all your fixed, and essential, costs have been taken away from your salary.
When buying a home, it is important to accurately assess your personal finances before making the decision.
Once you sign the dotted line on your purchase documents and mortgage, you have legal responsibilities to meet your loan payments, else you could run the risk of your home being repossessed.
Can you afford to own a property?
Our Affordability Calculator will help you budget for your new home by detailing just how much disposable income you would have at the end of the month given your new circumstances.
If you are buying jointly, then work our your joint income and expenses, as this is what the mortgage lender will look at ultimately.
Also consider what expenses you may be able to cut down on, perhaps the monthly shopping spree, or the annual overseas holiday, at least for a short duration.
Need a mortgage? Speak to Chris
If you are considering buying a home in the near future, Chris can help prepare your application and discuss your options:
Tel: 01403 780 770
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