Mortgage for Doctors: The Secret to Budgeting for Your First Home

Budgeting for your first house. A lot of times you think about it. Most people when they're thinking about a house, they're only thinking about what they can afford to pay. Now they're thinking about it based on the current interest rates. They've not actually really considered other factors in the budget. So recently I spoke to a colleague who had rang in because they were facing some difficulty about managing their mortgage. They were worried that they were about to lose their home. Her main concern was that when she got the mortgage, originally, her mortgage payments were about 800 pounds per month, which was fine. As a doctor, she was able to afford that quite comfortably. But suddenly, with the rise in interest rate, she suddenly found herself struggling to pay because her mortgage went from 800 to as much as 1,700. So almost, I'll say, more than a double of what she was already paying. This came as a struggle. So one of the key things we do suggest is that if you're going to take out a mortgage, you need to do what we call stress testing. You need to check if your mortgage doubles or triples, will you still be able to afford it?