When applying for a mortgage, you are also applying to manage and fund a home. That may sound obvious, however what may not have been considered are the additional associated monthly costs involved.
Much the same when perhaps you bought your first car and discovered the cost of insuring it was nearly the same or even more then the cost of the car itself. You do not want to buy a house only to discover that the mortgage is affordable, but to keep the roof above your head in the event of a financial crisis is beyond your means.
So what other costs should you expect to be able to fund in addition to your mortgage:
- Electricity and Gas. What type of heating & cooking facilities will your house have?
- Telephone. You may have a mobile but landlines are still the most popular option.
- TV Licence. A colour is £145.50 per annum. A black & white licence is £49.00 per annum
- Council tax. If you are moving out of your borough it is worth checking what the rates will be.
- Water rates. Expect to have a water meter fitted
shortly after you move in, if the house does not already have one. If you are a family, your bills may well increase from what you have been paying.
- Buildings and contents insurance. Moving away from a different post code area is
likely to change your premium.
- Motor insuarnce. Similarly, moving into a different post code is likely to change your premium.
- Life cover, critical illness cover, Income protection, redundancy cover. Whilst none of these are compulsory they go a long way towards ensuring you keep the roof above your head in the event of a financial crisis. The premiums for these will dependent on many factors, e.g. Age, length of mortgage, type of policy you take out.
- Transport costs are likely to change, especially if you are moving further away from your place of work.
All of the above are important considerations and should be taken into account when working out your budget for a new home. Dont get caught out.
Your home may be repossessed if you do not keep up repayments on your mortgage
For more information or you wish to discuss further please contact on:
Telephone number: 01708 640855
Authorised and regulated by the Financial Conduct Authority