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First Time Buyer Guide

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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.
Our budget calculator will help you to do this.

It’s a good idea to talk to lenders about mortgages as early as possible. Your bank or building society is a good starting point.

Planning your monthly budget
1. Work out what your monthly outgoings are likely to be once you own your home, your family or friends that already own their own home may be able to help you with this.

2. Take this away from your income.

3. Note the money you have left for monthly mortgage payments.

4. Take this into account when calculating what type and size of mortgage you can have. At this stage you may want to use our mortgage repayment calculator  to get an idea of what your monthly mortgage repayments may be.

5. Don’t forget to budget for the initial expenses of buying a home, which could amount to several thousand pounds. Calculating your moving costs will help here.

6. Have a good idea of the most you want to spend – a price ceiling. It’s one of the first questions any estate agent or property website will ask.

Tips:

  • Looking for a mortgage lender at this stage can save time once you have made an offer. It can also help you convince sellers that you can move quickly – and this can put you in a stronger position when it comes to negotiating price,
  • Speak to a Mortgage 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 or use your family to help you out.

Understanding your mortgage
There are lots of different mortgages on offer – and plenty of information to help you choose one that suits you best. We’ve explained the basics to get you started.  Click here for more information about understanding your mortgage.

Next step: Searching for the right place

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C&G mortgages are provided by Lloyds TSB Bank plc and administered by Cheltenham & Gloucester plc. Lloyds TSB Scotland plc offer their own range of mortgages, find out more.

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