Sat 28 Aug 2021
Anne Butcher, Managing Director
Follow our top tips for buying your own home
Save, save, save
Saving for your first house may seem lengthy and unpleasant at times. However, persevere! It will pay off in the end.
The larger your deposit, the more appealing your company will be to lenders. The more your equity, the lower the danger you pose. A greater deposit also indicates a lower LTV (loan to value), which means you'll be able to choose from a wider range of mortgage options - including products with lower interest rates.
Be practical when it comes to your borrowing.
When it comes to purchasing consumer things, we can all get carried away, but when it comes to purchasing a home, it is critical to examine your budget and keep to it. Examine your budget and determine how much you can afford to spend each month without jeopardising your other essential costs. A lender will advise you regarding the maximum amount you can afford to borrow, it doesn't mean you actually need to borrow that much. Give yourself some flexibility, and be realistic about what you can comfortably afford on your own.
Do your homework
Unless you have a lot of experience with financial concerns in general, and mortgages in particular, seeking guidance is nearly always a good idea. However, it's good to invest some time in study to gain a basic understanding of the mortgage process and the many types of mortgages available.
Clear other debt
Your affordability will be determined by a lender based on a number of variables, including your agreed monthly expenditure. You'll increase your eligibility if you can minimise this amount by paying off unneeded debt, such as a credit card balance.
If you're buying a property on a single salary, it's critical to have income protection in place to ensure that you can keep making payments if something happens to you or your job.
Use a mortgage broker
When you speak with a mortgage broker, you gain access to specialist advice on mortgages, as well as any linked life insurance, payment protection, and even buildings and contents insurance that you may require. Using a mortgage broker will allow them to compare mortgage products from various mortgage providers. This will ensure you have "shopped around" for the best deal. It could help you save thousands over the years!
For further information call 01226 767 766