For first-time buyers, starting the journey finding the right mortgage for your first purchase can be daunting so using the right professional to help you is key.
We can help with each step of the process and explain it in a straightforward manner.
Types of Mortgages available
There are many different options and products available so it it very important to get the one that fits your needs and requirements. We would discuss interest rates, any fees, length of term and how much you would want to pay each month.
Fixed-rate mortgages
With a fixed rate mortgage the interest rate is fixed for a set period of time which can be from 2 to 10 years .After this rate has finished you will move onto the lenders standard variable rate.
Standard Variable rate
This is the default rate which you will move onto once your selected product has finished.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495.
Tracker mortgages
This option follows the Bank of England base rate so can go up or down.
Interest Only
Having an Interest only product would mean that only the interest is being paid each month and the amount borrowed remains the same. So it is very important to have a plan to repay the mortgage before the end of the mortgage.
Deposit ,Finances & Credit rating
It's true that saving for a deposit can be a significant challenge for first-time homebuyers. The amount required for a deposit can vary based on factors such as the lender's policies, the buyer's financial situation, and market conditions. In many cases, a 5-10% deposit is a common guideline, but some lenders may require more.
The affordability assessment conducted by lenders is a crucial step in the mortgage application process. This assessment takes into account various financial factors, including income, expenses, and existing debts, to determine whether the borrower can comfortably afford the mortgage they are applying for. Responsible lending practices aim to prevent borrowers from taking on excessive debt that could lead to financial difficulties.
Credit scores are indeed a key component in the mortgage approval process. A higher credit score generally indicates a lower risk for the lender, making it more likely for the borrower to secure favorable loan terms. Borrowers with higher credit scores may qualify for lower interest rates and more attractive mortgage options.
It's important for prospective homebuyers to monitor their credit scores regularly and take steps to improve them if needed. Obtaining a free credit report is a valuable tool for understanding one's credit standing and addressing any potential issues. However, it's crucial to use reputable sources for obtaining credit reports to ensure accurate and reliable information.
See link to get your report which is free for 30 days
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