How To Work Out How Much You Can Afford!

Is the thought of parting with too much money affecting your property hunt? Stop fretting, as Mansons are here to offer you the comforting advice you need!


Once you have decided that you are going to make that step onto the property ladder, one of the biggest steps is to then decide exactly how much you can realistically afford. 


Those buying a new home for the first time can find it a daunting prospect, while even those more experienced homeowners can find it a complicated exercise. 


How much can you afford? 


The key is to be realistic. This is where many first-time buyers find themselves choosing how they intend to buy, whether it be renting a flat or home or actually buying a property. 


This decision must not only factor in the realistic cost of the house itself, but also various other one-off expenses associated with the moving process that can add up without you realising initially. 


These costs may include, but are not limited to: 

- Arrangement fee by the lendor 
- Lenders valuation 
- Survey 
- Legal conveyancing fees 
- Stamp duty 
- Local authority and other search fees 
- House hunting fees 
- Removal fees and a contingency fund 


What to work out? 


Everybody will have their own realistic budget to spend and vice versa, but there are some key figures to consider. 


Calculate the amount you can borrow first of all, then also take into account that amount you have available in savings or investments. This is where Help-to-Buy ISA can be finally implemented if you have savings stored away, after which the costs of buying and moving will become clear. 


We would recommend consulting a lender or mortgage adviser to see what your maximum possible loan would be. Many people will wait until they have found the property before arranging their mortgage, however if you can get an "Agreement in Principal" from your chosen lender it can often convince the vendor that you are a genuine purchaser and put you in a better position to negotiate. 


Finally, if you are already a homeowner, you must also consider how much you feel you can gain from the sale of your current home. Many factors can alter that valuation, something that we will go through with you in this process. 


Make the task EASIER! 


To make the task a little less daunting, don't forget to check out Mansons' homebuyers guide! 


This step by step guide is based on years of industry experience and will ease you through the process from start to finish, helping you navigate common home buying pitfalls. 


Our Guild of Professional Estate Agents awarding-winning team are always on hand to offer support and practical assistance, all to create a better experience for you in an exciting time in your life. 


The free iOS and Android apps from OnTheMarket.com will also give you a head start when searching for a property, so if you’re looking to buy or rent with us then be sure to download the app here today for an instant, easy, ad-free way to search for a property of your dreams. 


If you’ve got questions to ask regarding buying, selling, renting or letting a property in the North East, don’t hesitate to come and visit us or contact us at www.mansons.net for assistance!