Calling all first-time buyers
The world of mortgages can seem incredibly daunting especially if you are young and fabulous (there are a lot more interesting things to be getting on with!). Is it the terminology used? Is it the media outlets? Or is it the dreaded ‘computer says no’ that we often hear from banks? If you feel slightly baffled by all the information currently flooding the market, then take a read, this may enlighten you.
Deposits are a must, the more that you can contribute to buy your dream home, the better it is for you. This is because the more you pay, the less you need to borrow, which then ensures you receive a cheaper rate! Typical loan to values are: 90%, 85%, 80%, 75%, 60% and so on.
Saving up for a deposit can be difficult these days, but there are ways in which the people around you can help, if they are willing to of course. There are saving accounts for family members willing to provide a lump sum for a fixed amount of time. There are mortgages family members can take out on their own home, releasing equity and providing early inheritance. This may prove popular as family members get to witness the joy of seeing you buy your first home. And, there are savings accounts whereby you can save monthly and receive interest after 12 months.
Speaking to an independent mortgage advisor will arm you with facts and figures ready for you to take out on your search. Knowing how much you can borrow from the outset will save disappointment later on.
Once you have your deposit, you then have the exciting role of finding your first home. Luckily for you, we are experts at matching people up with their wish list. There are open days, viewings and online details for you to explore, so what are you waiting for?
Still not convinced? The rest is easy…
When you have found ‘The One’, how do you make it yours? Your independent mortgage provider (who provided you with figures at the beginning) will be waiting to take your call.
They can then provide you with a mortgage promise/agreement in principle, which basically proves you are able to get a mortgage.
They will then provide you with advice around which mortgage product is most suitable for you based upon your current situated and future goals.
Would a fixed rate be more beneficial? Do you like stability of knowing what your monthly payments will be? Do you have a future event taking place for example, a career move? Are you expecting money from another source? The answers to these types of questions can determine which mortgage deal is right for you.
After receiving the most suitable advice, your independent mortgage advisor will make your mortgage application to the lender. Upon receipt of a successful application, a survey will need to be conducted for both your security and the lender’s security (no pretty houses that are falling down please!), and last but not least a solicitor will then be instructed to complete the legal process of your shiny new purchase.
There are lots of places that offer mortgage advice and you may automatically think that your first stop needs to be where you currently bank. However, this isn’t entirely true because although your own bank will have access to your accounts and financial history in terms of income/outgoings, they will not have access to the whole market. This means that you could be missing out on a mortgage that is most suitable for you.
Another thing to consider is that every financial institution has their individual lending policy. This means what one lender may accept, another lender will not.
Independent mortgage advisors have access to the whole market AND have knowledge about all types of different lending policies. Therefore, using an independent advisor will only make the process easier with more choice available and in today’s world, choice is something that we have all grown accustomed to.
Let us work together to find your first home with your role being the fun part!