What can I afford? How to calculate your budget | Homewise

You want to move home and may have started browsing online, but to find your perfect property you need to calculate your budget first.

To understand a realistic budget, you’ll need to think about the potential income from your current property along with any mortgage to be cleared and possible savings you’ll need.

Not sure where to begin? Use our simple worksheet to help work out your available budget.


DOWNLOAD worksheet


Funds In

Property value

This is the expected selling price based on the value of your current property. Make sure you get at least 2 or 3 independent valuations to be certain your property is marketed at the right price.

Don’t be fooled by a high valuation, this could be the agent acting in their best interest and not yours. The high price could put off potential buyers and delay the process greatly. Do your research and choose a realistic price, you’ll be able to fund your dream move in no time.


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Savings contribution

Do you have any savings or other funds to add to your moving budget? This can include the sale of additional assets or other potential income you are expecting to use.

Be honest about your budget. If these additional funds are not currently available, when will they be? Can you move without them? If you’re relying on the sale of another property, or an inheritance, remember this will delay the process and could not only affect your budget but your moving costs too.

Funds Out


If you have a previous mortgage or equity release debt to pay off with the sale of your current property include this here. Get an accurate statement of your debt and check if there are any fees to pay when clearing this amount.


Credit cards and loans

Do you have any outstanding loans or credit card debt that you need to pay off? Consider about your current outgoings, are there any cards, overdrafts and car loans, for example, that you'll need to settle.


Any other debt

Don’t forget about any other money you owe, this includes money that may have been loaned to you by friends or family in the past. This can include previous deposit assistance, memberships and subscriptions that may need to be paid.


Moving costs estimate

Moving fees and costs can be extensive, so be sure you're fully prepared before you begin the process and factor these costs into your budget from the start.

When you move the costs will include your agent’s fees, solicitor’s fees, stamp duty, removals and any assets like furniture you’ll need to purchase when you move. Solicitors fees average around £2,500 inc. VAT for both sides of the move, and you can use free websites like stampdutycalculator.org.uk to estimate your stamp duty. Don’t forget if you’re trying to secure a second (or third or fourth) home you'll be required to pay additional stamp duty of between 3% and 5%.


Savings to secure

You’re moving home and clearing debts, but what about the future? Do you want to set aside funds to live on, secure inheritance or maybe you’d like to travel more? Factor this in to the budget and you’ll have a clear picture of what you can afford today.


Sunbeds on a white sand beach

Seeing a clear breakdown of your finances will help you understand what you can afford and make the search for your dream home easy. Print off our FREE budget worksheet and get started right away.



Now that you have an idea of your moving budget why not check out our online quick calculator and find out how much your moving budget could be boosted by. 


Calculate your budget


Want to learn more? Get in touch with our friendly team today

Did you know we have other free checklists available? Take a look at this round up of our favourite moving guides available from Homewise!