How to determine your budget

How to Determine Your Real Budget Beyond the Mortgage

Many first-time buyers focus solely on the mortgage payment, overlooking crucial additional costs. Understanding your true budget requires looking at the complete financial picture of homeownership.

Beyond the monthly mortgage payment, homeowners must account for regular expenses including property taxes, building insurance, and utility bills. Consider the age and condition of the property when estimating maintenance costs - older properties typically require more upkeep. Factor in service charges and ground rent for leasehold properties.

Don't forget one-time costs such as solicitor fees, surveys, stamp duty, and moving expenses. Set aside an emergency fund for unexpected repairs. Consider future costs like furniture, decorating, and potential renovations. Remember that some costs, like council tax and utilities, may differ significantly from what you're currently paying.