Where can you afford to live?

Thinking of Moving House? Not sure where you can afford to live? Well the BBC have put together a very handy calculator to show you where your budget could take you. By entering in some basic details like the size of house, your available deposit and your monthly mortgage budget the tool will show you where you can afford to live in the country. It will also show you whether it would be cheaper to rent or buy.

Afford to LiveAs we all know the affordability of housing varies greatly across the UK and also depends on your preference to rent or buy. The calculator factors your selections and produces a result based on data compiled from the Land Registry, Bank of England, surveyors and landlords. The house prices and rental data are taken from the period October 2014 to March 2015.

The results from the calculation are presented in graphical form, using a map of the UK, highlighting all the local authorities where you could afford to live.  The mortgage calculation assumes that you have a house deposit of 5%, thus the calculator will be pessimistic if you have managed to save up a deposit greater than 5%.

House prices vary greatly across the country but also within areas. Factors such as education catchment areas, transport links and job opportunities. Remember that this calculator uses the averages for each local authority, you may find that there are variations within each district which would make the area more or less affordable. This calculator is a great broad guide but each house in the country is priced differently and so do not give up hope if your dream area appears too expensive.

Remember to get professional financial advice to check that you can truly afford the mortgage you want. This tool does not replace the need for sound finical planning when making a large decision like buying a house or flat, a change in the interest rate can dramatically affect your monthly mortgage payments. Also bear in mind that there are extra costs, other than mortgage payments, to consider when moving house. Please read our ‘Cost of Moving House’ article to learn more.


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