How to set a realistic mortgage budget as a first time home buyer

Find out about saving and setting a budget as a first time buyer in our blog post by Warrington Mortgage Centre

Thank you so much for your feedback on our first question and answer session – we’re loving it! In part #2 of our ongoing series we answer how first time buyers can set a realistic mortgage budget.

This is a tough one, so read it through!

Hi Catherine, things are obviously going to be a little bit different once you move out and get a mortgage, but the key is setting a realistic mortgage budget!

Before you jump straight into a mortgage commitment, we’ll take a good look at your current budget and try our best to accommodate things that fit into your current lifestyle. So if you go out with your friends once a month, and have a holiday planned – we can take all of that into account.

It might mean you need to cut back elsewhere, but we aim to deliver on the points that matter to you most – so if you’re ready to take a look at your budget, give us a call!

Before anything else, you need to sit down and work out what you are earning and what you are spending each month – without knowing that, you’re unlikely to be in a position to afford a deposit or monthly mortgage payments.

Getting yourself a budgeting app such as Mint would be a great place to begin. This app helps you track and manage your money, giving you a birds-eye-view of your incomings and outgoings.

Once you get used to saving properly, you’ll rack up enough for a deposit in no time, and thanks to your successful budgeting, you’ll easily be able to understand how much to set aside for mortgage repayments each month!

Excellent work in already having your budget figured out Ashlea! You’re right though, there will be expenditure you don’t anticipate, and you should be prepared for such. On top of having an emergency fund for anything from a leaky pipe to a busted flush, you should keep in mind all the little things…

Your own Netflix subscription, nights out with work, that super-addictive mobile game you can’t stop playing – all of these small spends should be considered. You don’t need to be completely strict, but everything you can add to your total is worth it.

A good way to prepare is to look back at your bank statements over the past year. That way you’ll be able to see any unbudgeted costings, and can make changes for the future accordingly.

Thanks again for all the interesting questions, I look forward to seeing even more roll in!

Remember, budgeting isn’t always easy, there will be things you forget and, as a first-time buyer, things you might have to give up, but we’re here to help you every step of the way.

Until next time, feel free to check out the rest of our series here. Take care!

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