2 - Working out what you can afford

Before you start looking for a place to buy, you need to work out exactly what you can afford. This will help you to plan / narrow down your search and to make sure you are not going to overstretch your budget.

Planning your monthly budget

Work out what your monthly outgoings are likely to be once you own your home.
Take this away from your income.
Note the money you have left for monthly mortgage payments.
Take this into account when calculating what type and size of mortgage you want. At this stage you may want to use our mortgage calculators to get an idea of what banks will let you borrow and what your monthly mortgage repayments may be.
Have a good idea of the most you want to spend - a price ceiling. This will help when searching for your new home. Do not let Estate Agents know what you can afford, they will always try to get you to pay as much as they can as they work for the seller. Never get your mortgage approved with an Estate Agent or a Mortgage Broker that is associated with an Estate Agent. If you do you might end up paying over the odds.

Speak to your MortgageLine Adviser if you want advice on what you can afford and the options available to you. You may be able to buy with someone else, use your family to help you out or rent a room.

Next: understanding your mortgage