Prior to searching for a new home, buyers generally set a budget of what they can comfortably afford. However, research indicates that most buyers would be prepared to pay extra and blow their budget to get the house of their dreams.
The research, conducted by Ocean Finance, indicates that 78% of buyers would pay more for a house which met all their expectations, while 62% are willing to pay up to 10% more to secure the ideal property. According to Ocean Finance, this could add £28,000 extra to the original price of a home. Renters are also prepared to pay 10% more for a perfect home, adding an extra £76 per month to the cost of rent.
Some buyers will go further, with 2% saying that they would pay 20% more for a home which ticked all the right boxes, potentially adding an extra £56,000 to the purchase price. Only 25% said that they wouldn’t exceed their budget, and were more likely to compromise than spend more than they had budgeted for.
The spokesperson for Ocean Finance, Ian Williams, said that although most people have a budget when searching for a home, 75% are happy to exceed that budget if they find a perfect house. However, it may not be possible to get a mortgage for the amount that you are willing to pay, while also being sure that you can afford the extra costs every month, especially if interest rates increase.
Before considering exceeding your budget, speak to a financial adviser who has taken a CeMAP course so they are qualified to help you calculate finances.
