The warmer weather means that Spring is now in full swing. This means the start of the busiest time of the year for the property market.
In our industry, the Spring rush is something of a tradition, as people put their New Year resolution to move house into action and aim to complete everything by the start of summer holidays.
For many of them, the process will involve a bit of spring cleaning – of their properties, certainly, but also of their finances, as they seek a mortgage and calculate how they intend to make their repayments.
Giving budgeting advice is one of those unsung roles we play in the house-buying process. This is alongside scouring the market for the best deal and sorting out the paperwork.
Unless you are in the fortunate position to afford whatever you set your heart on, your budget will determine your choice of new home. This is why people ask us before starting their house-hunting to work out what their incomes will allow them.
Once they have found a property, and because there is invariably a difference between what a lender thinks that people can afford and what they think that they can afford, we then help them to narrow the gap. This is done by helping them to set a budget that will allow them to meet the repayments.
Some people track their outgoings down to the last penny using spreadsheets, others don’t have a clue. However, most people are in the middle. They don’t want or need us to delve deep into their finances but they do like to know how they can save money.
Often, there is room for manoeuvre. It is very easy for anyone’s finances to become a bit disorderly and for them to lose track of where their money goes. This is especially the case with the widespread use of direct debits.
We have seen many clients who can’t recall what some direct debits pay for. Cancelling these payments can be one of the quickest ways to save £30 to £40 a month.
Otherwise, they often need to re-assess their lifestyle. Could they get rid of their Sky TV? Could they go on holiday less? It sounds obvious – and it is – but these are emotional decisions as well as financial ones. they have to choose between wanting a better home and having two holidays a year. They then have to choose between wanting a better home and having two holidays a year.
Often, people end up taking a fresh view of their lives. This includes their employment status, their possessions, activities and even their approach to risk. Since this determines the types of insurance policies they will take out to protect their repayments.
This will, again, shape their budget and affect the property they are able to get. This is another reason why spring cleaning is so important and why it is advisable to get a professional involved.
If you think we can help, give us a ring on Freephone 0800 103 2655 or 01332 821 340.