How much can I afford?
Thanks to great schemes such as Help to Buy and with mortgages rates the lowest they’ve ever been, moving into your dream Keepmoat home could be much more affordable than you think.
But before you start house hunting, it’s always a good idea to work out how much you can afford.
Know what you’ll be paying for
It’s always handy to know exactly what you’ll have to pay for when buying your home. So before you budget, take a look at our guide to home buying costs .
Find out how much you can borrow
Mortgage lenders used to follow a pretty simple rule. How much you could borrow was based on a multiple of your income. Two, three, four even
five times your annual salary.
Today things have changed. It’s not just about a multiple of your salary. Lenders have to make sure you can comfortably afford your monthly payments. They’ll use a Mortgage Affordability Test to do this, don’t worry, it’s not as painful as it sounds.
There’s some good news for home buyers too. Because right now mortgage rates are at a record low. Lenders have been steadily cutting rates over the last year, making mortgages more affordable than ever before.
With Help to Buy you could afford more than you think
The popular Government-backed equity loan scheme makes buying even easier. And you could move in with just a 5% deposit.
Remember to check your Credit ReportSource: www.keepmoat.com