Looking to buy a property? How much can you afford? Use this house affordability calculator, powered by the Office of National Statistics, to find out. If you need a mortgage then speak to an adviser and ensure you get the best deal suited to you.
How does the property affordability calculator work?
Simply enter a postcode, or use your current location, and the calculator will tell you how much you can afford to buy.
It will show you:
- How much annual household income you’ll need
- How much you’ll need to have in savings
- An average entry level property cost
- Average household income for the area
What is entry level?
Entry level property refers to the lower quartile property price in the selected area.
How accurate is it?
The annual income calculations are based on the England and Wales average, based on a 15% deposit and borrowing 4.5x salary.
The calculator should be used as a guide only and makes a number of assumptions when calculating your figure.
These assumptions can be changed to better fit your individual circumstances if necessary
Note: this is not the same as a mortgage affordability calculator.
Why use the affordability calculator?
This can be extremely useful when it comes to buying a property in your intended area. It’s always handy to get a rough idea to help you get your finances in order.
Remember, areas and properties can change in value over time. So, look for ways to increase value to ensure when you come to sell, you make a profit.
Home refurbishment and renovations can add value, such as an extension.
To give yourself a better idea, use an extension value calculator.
Need to find out more about your area?
Even if you can afford a particular area, how can you be sure you want to live there?
Remember, you can change many things about a property, but not the area it’s in! There are many different factors that will influence how happy you are living somewhere, including local amenities and transport links.
Phil Spencer’s property report can tell you everything you need to know before you buy somewhere. This includes gathering information on crime rates, local schools, and much more.
Want to get your hands on one? Grab yours below!