The latest property figures to come out show that Essex is the fastest growing region in the country in terms of the property market. The market grew on average 9.2 percent up until last August, and first time buyers and buy-to-let investors are driving the market forward. The rise in property prices in the area means it is going to be hard to get on the property ladder for the first time. You need to know that you can afford a mortgage before you start looking for property to buy in Essex. Here’s what you need to do to make sure a mortgage is the right financial commitment for you right now:
- Work Out What You Can Afford to Spend
Subtract your total outgoings, what you spend each month, from your total income to see how much you can afford to pay on mortgage repayments every month. Once you know what your repayments are going to be then you can discard any mortgage deals where the repayments are higher, unless you work out where the shortfall is going to come from.
- Use a Calculator
Next use a mortgage calculator to find out how much you can spend on a house in Essex. A mortgage broker chelmsford expert says that this is the way you can work out what is affordable, by putting in the mortgage amount and the interest rates. You also need to consider that there are fees associated with buying a home that will be apart from the mortgage and you need to cover these when you are working out what you can afford.
- Check You Will Be Accepted
It is difficult to know for certain whether you will be accepted for a mortgage but you can get a fair idea by looking at how lenders assess your financial circumstances. They will base their calculations on your income, whether you are in permanent employment on a full time basis, how much you pay out each month, what debts you already have, and whether you have children or other financial dependents. Lenders will also check your credit history to see how you have dealt with past debt. Any arrears will show up and act against you. The amount of deposit is also important and will affect whether you are likely to be accepted for a mortgage. Your age is a factor and when you are older you may need to get a mortgage in a different way. Lenders will also check to see if you should be able to keep up with mortgage repayments even if interest rates go up.
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