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Budgeting for a Mortgage

By: Emma Eilbeck BA (hons) - Updated: 20 Nov 2010 | comments*Discuss
Budgeting For A Mortgage

Once you have gone through the hardship of getting your mortgage you may think that it is all plain sailing from then on, you’d be wrong.Budgeting for your mortgage is one of the most important things you can do and the hardest part of the whole mortgage process is inevitably paying back the loan.Getting a mortgage will most likely be the biggest financial commitment you make in your lifetime, so itgoes without saying that you may have to cut back on a few things.

What you will have to Pay for

The biggest difference between living in a rented property and having your own property is that when things go wrong, you are liable and will have to pay out, instead of your landlord. You may have had no savings in your bank when you were renting a property, but now you own one, you should always make sure you have some emergency money.There would be nothing worse than your boiler breaking down in the middle of winter and you not having the money to repair it.

You also have to consider what extra bills you may have to pay now that you own your own property. It is worthwhile checking out the council tax in your local area before you buy and see how much this is going to cost, so you can budget it in.On top of this you will also have the routine bills to pay such as gas, electricity and telephone.One of the best things you can do is get a detailed survey of the property carried out before you buy the property.A lot of people have been caught out by the cost of repairs and building work that needs to be done to the property that you were not aware of before.

How to Budget

Don’t worry, just because you may have mortgage payments to keep up with it doesn’t mean that you will not be going out ever again. However, a lot of people do find that they have a lot less disposable income and are not able to spend as much as they once did.You may also find yourself swapping shopping for clothes to shopping for kitchen fittings.There are a number of ways to budget for your mortgage, you should make a list of any potential costs you might have to pay and work out how much free cash you will have. It is worth shopping around when it comes to choosing who you get things such as gas and electricity from as this can save you money.

Although a lot of people do find themselves struggling at first when they get on the property ladder you will not hear many people say that it wasn’t worth it.At least if you are spending your money on a mortgage you are building up and asset and not just throwing it away.

You will know yourself what areas you can realistically cut back on and how you can make savings. Planning is key, but you should also make sure that you don’t set your limits too high in the first place. Before you get your mortgage, make sure you can afford it.

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