Next Steps
Deciding On How Much You Can Afford
It is not always best to rush in and get the biggest mortgage
available. Be sure that you really can afford it even if
your circumstances change - the higher the proportion of
your monthly income you are borrowing, the more exposed
you will be should interest rates rise suddenly.
It can be well worth going over your bank statements to
identify your income and various items of regular expenditure.
Feel free to print out the checklist below, or use the interactive
calculator to work it out online:
Monthly net income after tax and national insurance
1st salary
2nd salary
Other income
(Including regular overtime, guaranteed commission, other
regular earnings from investments etc)
Total net income available:
Monthly expenses
Estimate your regular monthly expenses, which should include
an approximate monthly equivalent for anything that is paid
for annually or quarterly.
Money matters
Ground rent & maintenance charges
Credit cards and other loans
Other rental/HP agreements
Insurance
Contribution to pension fund
Rainy day savings contributions
Other personal finance products
Household expenses
Food
Household goods
Toiletries
Home improvements
Clothes
Dry cleaning and laundry
Heating
Lighting
Water
Telephone
Council tax
Health
Prescriptions
Eye care products
Health insurance
Life assurance and protection products
Travel
Public transport
Car tax
Car insurance
Car maintenance
Petrol/diesel
Children's education
School fees, uniform and equipments
School meals
School trips
Babysitter/nursery
Leisure, hobbies and interests
Holidays
Gym or club membership
TV rental and license
Theatre, cinema, restaurants
Garden
Sports and other hobbies
Pets - food, vets fees, kennels
Smoking
Drinking
Computer equipment
Total expenses
Total net income available:
