Manchester is a beautiful place to live. In fact, it was recently named the third best city in the world to live in by a Time Out survey. There are many reasons for that. It offers a robust jobs market with less competition than other major cities in the UK like London. It has a great nightlife scene too. Maybe most importantly, though, is that the cost of living here is quite a bit lower than it is in London and even cheaper than it is in other major European cities. That doesn’t mean, though, that getting on the property ladder is easy if you live in Manchester. Finding houses for sale Manchester citizens can actually afford can be a bit tough, but if you better understand how to budget for a house, you should have no trouble at all.
Step 1 – Think about the Deposit
Finding a house for sale where you can afford the monthly payments is one thing. Understanding how to afford the deposit, though, is quite a different thing all together. Deposit amounts are subject to change according to the terms of the mortgage, but in general, you’ll need a deposit of at least 15% if this is the first time you’ve bought a home. You’ll need at least 20% if you are not a first-time home buyer. Often you can find a mortgage calculator online to help decide exactly how much your deposit might be. The average property price in Manchester is £247,833, so in general, you’re going to need a deposit of at least £37,000 or more to even begin to get on the property ladder here. Look to your current savings to understand how much you’ll need to put back each month to build your deposit amount. If it seems out of reach, you may want to adjust your price range a bit. It can also help to realise, though, that most people take more than a decade to save for the deposit on their first home, so don’t worry if it will take some time to build up that savings.
Step 2 – Begin Thinking about Additional Expenses
Your deposit isn’t the only expense involved in buying a home. You’ll also need to save for the additional costs that come with buying a home in Manchester. Among these costs are stamp duty, conveyancing fees, the cost of the surveys to ensure the house you want to purchase is structural sound, and the mortgage arrangement and broker fees so often involved with lending. In general, you can expect to pay a few additional thousand pounds in these kinds of fees, all of which must be paid before you finalise your mortgage.
Step 3 – Decide on a Monthly Payment That Works for You
Saving the money for a deposit and the added fees before you search for houses for sale in Manchester is absolutely essential, but you’ll also need to think about how much you can afford from month to month. You’ll likely want to use a mortgage affordability calculator to help you understand whether you can actually afford a mortgage in the amount you’d like. Remember that you’ll have every day expenses in addition to the mortgage repayment amount like the cost of gas, electricity, and more. Most lenders will only make a mortgage loan that is four and a half times your annual income.
Step 4 – Build a Monthly Budget
Once you know what you need to save and how much income you’ll need month after month to make your mortgage payments, it’s time to sit down and build a monthly budget. Work to save as much as you possibly can to ensure you have plenty of cash on hand for the deposit, and ensure that you don’t have other outstanding debts like credit cards that will force you to shift your resources away from your savings plan. If you’re struggling, it may make sense to sit down with a financial advisor to build a budget that is ideal for your needs.
Houses for Sale in Manchester Abound – Work to Get Your Finances In Order
There are lots of houses for sale Manchester residents can afford, but it’s only possible when you understand what you can afford and build a budget you can stick to. Don’t worry, there will be plenty of homes on the market when you have your savings in order to make the purchase.
