Moving house can be a very stressful process but there are tools to help make the process a little easier – especially when you are calculating your budget and working out whether you will be able to pay your mortgage and still live a relatively comfortable existence. One of these is a Property Budget Calculator.
Why Should I Use a Property Budget Calculator?
A budget calculator determines how much you can spend as a percentage of your income. You can use it to plan for your estimated expenses based on income before you start the house-hunting and mortgage approval processes. Firstly, it’s essential to know how much of a house you can afford. Secondly, ask yourself how much you can be able to borrow to buy a house and lastly, the size of the mortgage you can probably get. By doing so, it will assist you to only search for realistic options. It will also help you avoid disappointments when applying for finances after you have found a house to buy.
A budget calculator is a rapid and easy-to-use planner tool and gives you an idea of the amount you can afford for your new home. There are several factors to consider when purchasing a new home. Sometimes, even the first step can be overwhelming.
The first initial step is to determine what your budget is, but with so many complicated affordability and mortgage calculators out there, it can be confusing and challenging.
An example of a useful property advice calculator is propertypriceadvice.co.uk/budget-calculator. With just a few questions for you to answer, you can find an approximate budget that well suits you within moments.
As a result, you can discover whether those homes you have been yearning for are within your budget. With all that in mind, here are steps you can use to determine how much you have to work with:
How a Budget Calculator Works
Step one – Fill some information about your finances
It’s quite simple. Enter the available amount you have as a down payment deposit for your next home. Enter your current salary and, if applicable, enter your partner’s prevailing wage too. Your mortgage deposit may include a cash deposit, help to buy a deposit or an estimate of property valuation equity held in your current property.
Step two – Enter your personal details
Enter your email address to receive a record of your result directly into your mailbox. The estimated budget, according to your results, will appear instantly on the screen on the result page.
You can also receive property-related information of your interest, and you will get a prompt to opt-in before receiving the information.
Once you have entered your personal and financial details, then the budget calculator will work on how much amount you may be able to borrow through a mortgage plan based on your salary versus expenses. The calculator will add this to your available deposit to generate the overall home-buying budget.
Step three – Take the necessary steps towards buying your new home
At this point, you know how much you can afford to spend on your new home. You can now book an appointment with your mortgage partners of choice to discuss the available borrowing options that best suits you.
Having your mortgage options in place before going to view a house will ensure that you don’t miss out on the best home of your choice available.
Check the latest sold house prices in the neighbourhood in which you want to live and get an idea of the type of house and the budget involved.
Opt-in to current information on new property alerts so that you can hear about the latest homes on sale in your preferred area.
Select trusted partners from your area, and in case you have an old property that you need to sell to buy the new house, book an appointment immediately with a well-rated property seller near you to identify its value and learn more.
The Budget Calculator Formula
First, add together your savings, sales proceed, and mortgage sum, then take away stamp duty, arrangement fee, broker fee, solicitor’s fee, surveyor cost, incidentals, finder’s fee, and renovation/furnishing costs.
The number left over is your property budget. However, a budget calculator should not be seen to be a financial advice tool. Instead, it should only be for educational purposes. Besides, it will depend on what the lender might be willing to give you.
It is also advisable to use other tools to determine whether you will be able to afford the monthly housing payment, that this type of affordability calculator is giving out in its calculation report.
Other Budgeting Tools
To start your move it’s with using a moving checklist and costing out each stage. Formulating a realistic budget will help to minimise the stress but also you will have to hand, a ready list of key professionals that you can instruct at the right time. You probably use comparison websites for your House insurance and Car insurance, well you can now do the same for conveyancing.
To get an idea you want to find a website where you can compare fully inclusive conveyancing quotes that do include all legal fees and disbursements. Solicitors are regulated and you can make considerable savings if you use a solicitor based in a low cost of living area. It’s worth noting that some solicitors are approved to work for specific Lenders.
We found the Homebuyer Conveyancing website where comparable conveyancing quotations are fully itemised. The great news is that no personal details are required to view the quotes. That means no hassle, as you will not be called or emailed. You can even filter the conveyancing results by price, location and by that all-important Mortgage Lender. Controlling costs by using fixed fee quotes does make sense.