First Time Buyer Guide
Step 2 of 7: What you can afford
Before you start looking for a place to buy, you need to work out exactly what you can afford.
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
- Use our budget calculator to help you work out how much you can afford.
- At this stage you may want to use our mortgage repayment calculator to get an idea of what your monthly mortgage repayments may be.
- Don’t forget to budget for the initial expenses of buying a home - calculating your moving costs will help here.
- 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.
- Looking for a mortgage lender at this stage can save time once you have made an offer. It can 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.
