GETTING YOUR FIRST MORTGAGE
Applying for a mortgage for the first time can be challenging, but there are a few ways we can boost your chances of success.
Firstly, we can see what size of a mortgage you are eligible for and can sustainably afford. There are hundreds of basic calculators out there that you can use which will give you a very rough indication as to what you can borrow. In reality however, every lender has their own way or looking at how much they might lend you and their financial models are getting ever more sophisticated.
There can be a massive difference between them. but we will help you work out who fits your profile best and give you a real indication as to what you could borrow, especially as some calculations can be tougher on first time buyers.
If you are already in the process of buying and your estate agents have asked for an “Agreement in Principle” or “Decision in Principle” we can either help provide one of those to your estate agent or let them know your borrowing potential. Don’t be pressured into using the in-house adviser of the more corporate estate agents who tell you they won’t accept your offer without this Agreement / Decision in principle. You might end up with the wrong lender or an unnecessary credit search on your file. You are also free to use whichever mortgage adviser you choose, despite what you may be told.
We will look at how long you want to repay the loan. The longer the term for repaying, the cheaper the payments will be as you are spreading the cost over a longer time. The downside of course is that due to paying off less capital each month, you pay interest for longer, hence the overall cost of the mortgage will be higher in the long run.
When we are thinking about affordability we will also go over the other potential costs that are involved with buying your first house, such as: Stamp duty, legal fees, valuation fees and property insurance.
An important factor that we will also look at is life and sickness insurance because whilst it’s great that you will be getting the keys to your new home, we have just helped you to obtain a large debt. As we see it, we have a duty of care to ensure that you are aware of the potential consequences of not having the right insurance packages in place. We will tailor-make a recommendation for your given circumstances.