First Time Buyers Guide
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CharltonOnLine.com is a trading name of Charlton Marketing and Development Ltd.
CharltonOnLine.com is a trading name of Charlton Marketing and Development Ltd.
Your home may be re-possessed if you do not keep up repayments on your mortgage.
Now, as first time buyers you have an idea of what you may borrow, you need to decide what you can comfortably afford and be aware of how much your finances will be stretched if you borrow too much.
Interest Rates and their affect on First Time Buyers
Firat Time Buyers, what can you afford
Last updated 15 March 2009
Interest rates have a direct affect on what your mortgage repayments will be for any loan ammount and you need to be aware that interest rates are currently at very low levels and in some cases, are approaching zero. While this may remain the case while we are in economic turmoil, once this period passes interest rates could begin to rise and you need to consider this possibility carefully and ask yourself what you could do if that were to happen. Inflation is also low and this means that if your circumstances remain the same, the burden of your mortgage repayments will remain with you for the forseable future. In the past, with high inflation, your mortgage repayments as a percentage of your income, tended to reduce over time and become less of a burden.
Click on the symbol to take the next step
Deposit Raising
Here is a useful calculator to help you assess this. It's in the form of an Excel spreadsheet and can be accessed by clicking on the button. You will need to have Excel on your computer to use this calculator and very basic skills.
The Next Step
You should now understand your purchasing range, what a lender might be willing to lend to you and what you are able to afford this. You now need to consider how you will raise the necessary deposit and how deposits affect mortgages.
Step 3
Considerations affecting First Time Buyers
This is where first time buyers have to look carefully at your lifestyle and how you currently spend your income. Unless you are very fortunate, taking on a home will reduce the money you have for other things and you need to be fully aware of how your expenditure will look after you have made your purchase. You need to be sure that you can cope with your new financial situation and obligations.
Use the Calculator
Using the calculator will cause you to consider your current expenditure and unless you already do this on a regular basis, you might be surprised at how much you spend on non essential things. This calculator should help you to budget and it will highlight to you where your money is going.
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