Being in the position of a first time buyer can be one of the most exciting, yet most nerve wracking experiences you can face in your adult life – taking your first steps on the property ladder and ultimately undertaking probably the single most important and largest financial commitment you are likely to. In light of this it is imperative that you seek out the best deal possible and also get the right, clear and comprehensive advice to help you on your way.
To this end, we have put together our top mortgage tips for first time buyers. Though we would always suggest speaking to one of our knowledgeable expert advisers free of charge, we believe these simple starting points are always worth bearing in mind.
1. Keep an eye on your credit score
The importance of having a good credit score cannot be underestimated. Lenders will always require to see this, so having knowledge of how your credit report looks prior to them doing so is always worthwhile, and may stop any nasty surprises. There are a number of providers that allow you to do this; from Experian and Equifax to Noddle. By checking your report you will get a good indication on how to improve your score. Sometimes, these can be fairly quick and easy wins: such as ensuring you are on the electoral register and making sure any cleared or unused credit cards or accounts are closed down.
2. Try to lower your debt levels
When your lender receives your mortgage application and credit report they will be able to see your current financial standing, so any amounts left on credit cards or hire purchase agreements will become visible. This will have an effect on your affordability – the amount of money you have left each month in order to make your mortgage payments. In essence, the less debts and outgoings you have, the more you may be able to borrow.
3. How big is your deposit?
It probably comes as no surprise that the more money you have available to put down as a deposit on your new house, the lower the repayments will become and therefore the choice of products available to you grows. Though it may seem an arduous task to save for a larger deposit, in the long run the savings to be made will make it all worthwhile.
4. What is the current state of play?
We would always advise that before getting your hopes up and starting the journey towards a mortgage application that you take the time to sit down and work out your finances to see how comfortable they sit with you. Work out your incomings and outgoings and then see how much would be left for mortgage payments, whilst also taking into account your day to day living costs (which your lender will do). You can then get a rough indication of how much you may be able to borrow by using our mortgage calculator. If it is all looking good – give us a call.
5. Stability is good
When applying for a mortgage it is not just your finances that come into question from lenders. It is also your reliability to continue to bring in a wage that can pay your mortgage. Therefore, if you are looking to change career or move jobs, it may be worth holding out until you are in your new home. Lenders will want to see around at least 6 months of stable employment on the application they receive. This shows them that you are a stable and reliable applicant.
6. …and while we are talking about work
All lenders will need proof of income. Always keep hold of your payslips and P60 documents. These are what lenders will ask for to clarify that the amount they are lending affordable for you. In addition to your employment documents, remember that at least three months’ bank statements will also be required. This will again clarify your incomings and outgoings mentioned above.
7. Stay consistent
To ensure that your application proceeds swiftly and without any issues, make sure that you are on track with a single vision from start to finish. Once under-way it is important not to change any of the details of the application in order to ensure the case is dealt with promptly. Try not to change your lending amounts and ensure that all outgoings are declared in full from the outset.
8. Give us a call
We have years of experience in mortgages and helping clients find the best deal for their circumstances. Rather than approach a lender directly, always check with our team of knowledgeable, dedicated advisers as we have access to many lenders and products that are not available on the high street. As we are a fee free mortgage brokerage we will never charge you a penny for our advice and services.
Call us today on 01249 474952 or use the contact form below to tell us when is a good time to call you. At One 77 you always come first – start your journey with us.