Can I get a mortgage? Are there any mortgages for First time buyers? Not sure where to start? What can I afford to buy?
The good news is YES mortgages are available, there are 351 90% Mortgages and 84 95% mortgage deals on the market.* (30.1.13)
Getting these products will depend on your own personal circumstances. Try and save as much of a deposit as you can, easier said than done however the bigger the deposit you have the better the rate you will be able to get.
It’s always advisable for any First Time buyer to check their credit rating before they start house hunting. Your rating can be checked on line at www.experian.co.uk or www.equifax.co.uk. They will give you an indication of whether a mortgage lender is likely to give you a mortgage. Even if you’re not planning on buying a house for a few years, start building your credit rating now.
Ensure you are on the Voters roll at your current address, this is important as credit agencies use this to confirm your identity. A stable 3 year address history, you have some form of Credit.
For example, a credit card, spend a nominal amount a month but ensure you clear the balance before any interest is due. This demonstrates to lender that you have had debt and you have been able to service the debt, this also helps with building a credit rating.
If you are struggling to get a credit card there are cards specifically for people with poor/low credit rating, this will allow you to improve your score.
With your credit report in hand, seek advice from a Whole of market mortgage broker who has access to the whole mortgage market and will work for you and not the lender.
A good broker, like Choice Financial Solutions, will also support you all the way through the house buying process right up to you being handed the keys to the house.
A broker will be able to advise you what deposit you will need, how much you can borrow, how much it will cost you a month and the different mortgage products available to you.
Be prepared, a lender will usually require the following from you; Proof of Identity, Proof of address, 3 months bank statements, 3 months payslips, Latest P60, 3 year address history and details of any debts. If you are self employed usually 3 years accounts or SA302s.
You are now fully prepared to start your house hunting, you know your budget and how much you can afford to pay per month. You are in a good position to move swiftly when you find the property you wish to buy.
- Check your credit file
- Speak to a mortgage Broker
- Confirm how much you can borrow & afford
- House hunting
- Offer on a house
- Agreement in Principle
- Instruct solicitor
- Mortgage application
- Get ready to enjoy your new home!
* Source Moneyfacts.co.uk (30/1/2013)