Importance of Knowing Your Budget When Looking For Your New Home

When looking to buy a property, this is not only a massive financial commitment but also an emotional commitment. A stumbling block that sadly some buyers come across is viewing properties before confidently knowing their budget. This can not only lead to wasted time and effort in planning, but also a lot of heartache as a result of reaching the offer stage and being unable to agree on a price with the vendor.

It is always advisable to seek out information for your own financial capability in order to carry out a well-informed property search whether this is for yourself or as an investment. There are a number of factors to consider when it comes to choosing the correct mortgage product to yourself, such as:

  • Length of the term
  • Type of product (fixed/variable)
  • Any early payment penalties
  • Criteria restrictions
  • Size of deposit
  • Maximum mortgage allowed
  • Related fees
  • The rate

Since the Bank of England has cut the base rate in more than seven years, reducing it to a historic low of 0.25%, this can be good news for those looking to buy a property with a mortgage. Whether in the process of a searching for a home or looking for viable mortgage products, there is a likely opportunity in looking at the most recent mortgage rates following this change to save money on monthly repayments.