Are you ready to get on the property ladder? Today, we are sharing this infographic that discusses the different steps towards home ownership.
This is a decision that should be taken very seriously. While the UK has more stringent requirements for buyers to avoid taking on too much debt, the whole process can be confusing, especially for a first time buyer.
It all boils to do being comfortable with your monthly repayment, whatever happens. Can you keep paying your mortgage if your spouse wants to stay at home with the kids, or loses their job? Can you afford repairs on the house on top of that?
Mortgages are long term commitments. Month after month after month, you must find enough money to pay off your debt. Having an emergency fund comes very handy to weather small storms in your financial life.
But over the long term, it makes sense to keep your debt to income ratio as low as possible.
Scroll down to read more about the other steps to home ownership.