We’ve taken a big step this year and it’s only the 4 January!
Having skirted around the idea for a couple of years now, myself and my husband have decided that 2021 will be the year to purchase our forever home.
However, it’s incredibly daunting especially during this year of COVID to even think about how you may be able to purchase a property. Interest on savings are at an all time low, house viewings are becoming difficult and banks are putting more restrictions into place in their lending criteria.
So what do you need to consider if you too are looking to purchase your own home in 2021?
The first thing you need to know is how much you can afford to spend on a home and how much a mortgage will cost you on a monthly basis. Using a UK mortgage calculator to understand a ballpark figure of what you can borrow is a great start, but how do you know that you will be accepted?
The Guardian newspaper have today reported that UK mortgage approvals have risen to the highest level in 13 years, driven by the government’s stamp duty holiday and buyers reassessing their living situation during the pandemic.
This is fantastic news for those looking to get on the property market, but will the latest government lockdown announcement made tonight, have any negative impact on the current boom? Unfortunately, this still remains to be seen.
If you are unsure as to whether buying is right for you right now, you can use this handy online tool to quickly understand and decide if it is makes more sense to rent or purchase a home at the moment. After all house buying can cost us a lot of money.
If you decide to pursue a house purchase in 2021, another key thing to review is your credit report to make sure there are no issues. I currently use both Credit Karma and Clearscore to check that all my finances are in order and that there are no discrepancies in the information the credit companies hold. Checking these monthly will allow to pick upon any immediate changes in the data.
What do you have in store for 2021? Let us know your thoughts and what you are looking for in a new property. It is always good to hear from you.