Owning your own home is a common dream but as many first time buyers start the process of applying for a mortgage and kick-starting the journey to getting those keys in their hands, some timely advice.
From the end of April, UK mortgage applications will be more detailed as major changes to mortgage lending rules came into force. These new rules mean that any person wanting to apply for a mortgage will have their financial situation and personal details closely examined by lenders to ensure that the applicant can afford to pay back whatever sum they decide to take out.
It’s crucial to bear in mind that getting a mortgage is just the first step – you obviously have to pay part of the loan back every month. It’s pointless getting a big mortgage if you can’t cope with the repayments, after all. And don’t forget that you also need to cover running costs of your new home too.
Luckily, advice is at hand. Money Advice Service (MAS) has put together a mortgage checklist to help prepare you for an application, including all the outgoing costs you have to fund every month – bills, TV and broadband, childcare, eating out, food shopping (to name just a few). You can have a look it yourself by looking at the graphic below.
And, if you’re struggling to work out if a mortgage is affordable to you or not, MAS has created a mortgage calculator which you can try for yourself.
An infographic brought to you by Money Advice Service