1 Lust..
An uncontrollable passion or longing. Passion and longing can be healthy, but it can also be very unhealthy when it comes to borrowing for “that perfect home in that perfect area”. Don’t overdo it. Make sure what ever you do, it’s affordable.
2 Gluttony..
Habitual greed or excess. You may already notice a theme but greed and excess must be avoided. Once the emotion dies away after a few months you will be left with an overhanging unmanageable debt if you are not careful.
3 Greed..
Intense and selfish desire for something, especially wealth, power, or food. No explanation required here. Don’t be overwhelmed by greed and you will always stay out of trouble. If you can’t afford to borrow “that extra 20 grand”, then DON’T!!!
4 Sloth..
Reluctance to work or make an effort; laziness. A direct opposite to all of the above so far. In my opinion rent payments will always go up over time and your mortgage balance will always come down so you can’t complain if you are not willing to do anything about it. You only need a 5% deposit so with a little time, effort and careful budgeting you should be able to save a deposit and start paying for your own bricks and not someone else’s.
5 Wrath..
Extreme anger. Closely related to ‘Envy’. Don’t be angry or envious of your other friends/family/colleagues who are buying “That big house up the road”. You have no idea of their circumstances, financially or personally. Have your own plan and stick to it. Don’t be led by what other’s are doing.
6 Envy..
A feeling of discontented or resentful longing aroused by someone else’s possessions, qualities, or luck. Enough said really. As above, don’t attempt to keep up with anyone else. Pick a budget based on affordability and stick to it.
7 Pride..
Relating to the negative version where one feels better, more important or superior to others. Don’t become irrationally self confident in your ability to make large mortgage payment’s just because “you got that promotion”. Borrow what you need, not what you can. Many borrowers get into bother when maxing out what they can borrow because they borrow at a time when rates are low and income is high. Only 30 years ago interest rates were at 15%. Assuming you borrowed £200,000 at a current rate of 1.25% your payment over 25 years would be £777. At 15% they would be £2,562.
Outcome..
So the moral of the story, speak to a good advisor who will go through a proper affordability assessment and figure out what is affordable based on your individual circumstances. Don’t rely on an ‘online affordability calculator’ whatever you do. take some advice.
