Can you afford to move house?
It is really important that you are able to answer this question with conviction and clarity so that any move you make is done with surety and safety and that your repayments will be within your control.
Let’s have a look at the areas you need to think about when it comes to you moving house.
Can you afford to move house?
Ask yourself the following questions…
Do you have a regular guaranteed income?
Can you make the monthly repayments on a mortgage and still have enough for savings and emergencies?
Have you taken into account life events such a s funerals/ weddings/ possible illness?
Do you have insurance in place to cover you should something happen to impact your income or earnings?
When you look at the length of your mortgage to be do you really want to be working for that length of time?
And is the move really necessary, could you extend/redecorate/minimalise your home instead?
There really is a lot to think about when you are considering the question can you afford to move?
The things that can help you decide
So what can help you with this decision whether or not to make that move?
Well first and foremost you need to have a good and thorough understanding of how mortgages work.
You can in fact do a lot to make sure that you are making smart and financially savvy decisions by really putting in the ground work.
Firstly. you need to take a really honest look at any debt you have and face it. You need to look at our expenses and income with the same laser focus and clarity. Knowing how much you can afford to spend on your move and whether or not you can afford the mortgage repayments is absolutely at the heart of your decisions about moving.
Don’t fudge this or guess, you need to be crystal clear.
Use a great mortgage calculator
Why not have a go at using this great mortgage calculator. You can put in your deposit amount, interest rate, number of years repayment expected, etc and you can jiggle around with the figures to see what does and what does not work for you.
Prior to visiting a lender or having a discussion with a mortgage broker this is a great way for you to gain a clear idea about what it is you want and what it is that you can afford.
You might want to consider on top of any mortgage payments you work out what the insurance would be too, as this is critical.
Other sources of help
The Institute for Fiscal Studies has said house prices in England have risen by 173% over the last two decades. (BBC) As a result the figures relating to young peoples house purchasing power and constantly on the decline.
So how can you afford to move?
Perhaps you could ask your parents for help? take on another job, or maybe you could increase your earning potential by gaining more qualifications?
The government help to buy scheme is also worth a look, enabling you to get a special equity loan or even shared ownership if you are a first time buyer.
Don’t rule out a move, just make sure you do your research really well and that you make sure you really and truly can afford to move.