Guide Options
The YouMove First Time Buyer Guide
How much can you afford?
In the current climate banks will typically lend around 3.5 to 4 times salary, tending towards the lower figure if the calculation is based on joint incomes. Just because you can borrow this much, however, doesn't necessarily mean you should.
The first thing to consider is how much you can afford to pay each month based on your existing budget and your minimum requirements in terms of lifestyle. The key is to calculate your budget as accurately as you can as it's easy to overlook expenses, especially if they are infrequent.
If you are planning on getting a mortgage with a special introductory rate make sure you consider how much you will have to pay when the introductory period ends.
Whatever sort of mortgage you are getting you need to know how much it would cost if interest rates went up and that you could afford to continue making payments.
Whatever sort of mortgage you are getting you need to know how much it would cost if interest rates went up and that you could afford to continue making payments.
Your lender or broker should be able to help you with this or you can use our mortgage calculator to get an idea of the effect of different interest rates.
Once you've decided on a mortgage product you can calculate what your buying costs (in addition to the house itself!) would be. These will include:
- valuation/survey fees
- arrangement costs
- life assurance
- buildings and contents insurance
- legal fees
- Higher Lending Charge, if applicable
- stamp duty
- moving costs
For more detail on these items and their likely cost, see our separate "Guide to Buying" and "Guide to Mortgages".
Finally, don't forget your ongoing costs once you buy your new house, such as utilities and council tax.
If you buy a flat you will also have to factor in the cost of ground rent, service charge and occasional maintenance. Your solicitor should be able to advise you on what these costs are likely to be, though bear in mind that they will vary.
