Tuesday, 31 March 2009

Money, Money, Money...

Well, you can't do any project with out money and this project that we are embarking upon is certainly no exception. In fact it is going to take a whole lotta money. So the first place to start is your own finances. Sit down and work out what you can afford and what you are going to have to borrow. Keep in mind, particularly in the current mortgage climate, that the intrest rates will rise again, so will you be able to afford the payments then. We are lucky enough to be able to make a substantial down payment on a property but we will still need help. So once we had sorted out in our heads how much we could afford and how much we could reasonably pay back each month, it was time to book an appointment with a mortgage advisor. We opted for the mortgage advisor with our current mortgage lender. We felt they would be more likely to offer us the best deal as they knew our history and knew that we are 'payers of our mortgage'. We didn't have a property in mind at the time so don't be afraid to go and ask for advice, just have a ball park figure of how much the properties you are considering are and that is enough.

Due to the substantial deposit, the addition to our current mortgage that they would be able to offer was substantial also! However, as I advised above, be realistic with what you can pay back, remember there is no point chasing a dream that you have to give back in 5 years time, if a bit of forward planning could have avoided the heartache. As a result we were set that we wouldn't want to take out the full amount as we weren't sure of my financial position when we move. Unfortunately we may end up moving away from the area so much so that I am forced to give up my job, therefore we would need to be comfortable living on just one wage until I am back in work or the property is (hopefully) paying for itself!!
The trip to the bank was definately reassuring, not only did they confirm that financially we were capable of doing this project but also provided guidance on how we should go about transferring mortgages, when to sell our house and how the moving process works.
If your dream involves something that you know little about then don't be worried about asking someone who knows, whether it is a professional, like we saw, or (if your dream is make your own honey) that bloke down the road who has hives! Particularly with hobby dreams, people who already do it can imagine nothing more that spending an hour, or more, tlaking with a willing listener about their passion!!

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