Starting to look for a home

Once you've decided you want to buy a property, the first thing you will have to do is some background work in order to calculate how much you can afford as well as how much you can borrow. You will need to decide where you want to live and then contact estate agents in those areas.

Different mortgage lenders have different criteria for deciding how much you can borrow. Some factors that will be considered are:

1. Your income – Depending on the lender different calculations are made to calculate how much you can borrow
2. What you can afford
3. Amount of deposit available - the larger the deposit you have, the more flexible lenders will become

Your monthly outgoings are also considered. If the mortgage is going to be a joint mortgage for example, although two people may have exactly the same income their outgoings may be very different. It will depend on various factors such as their age, their lifestyles, and even where they live. Therefore, as well as taking your income into consideration, you will be asked about other financial commitments. Also consider what effect future interest rate rises could have on your finances. This is to help guard against your mortgage becoming unmanageable.

Contact a number of estate agents in the area you are looking to buy and ask them to put you on their mailing list. Keep them updated - let them know when you've got your mortgage agreed in principle as this puts you in a stronger buying position.

• They are instructed by and act for the seller not the buyer.
• The person selling pays the estate agent.
• The service is free to the buyer - Estate agents' fees are normally based on a percentage of the sale price, although sometimes it may be a fixed amount.