Guide To Buying Your First Home

 

Speaking to a Broker

A Mortgage Broker is someone that will help you through the process of getting your first Mortgage. A broker will explain the different interest rates, mortgage types, and how long you should borrow the money for.

You can call us for a free inital chat to get information on the questions that you may have, and discuss your mortgage needs.

When speaking to a broker, they can explain the different changed you could do to benefit you in the future.

Speak to an Adviser

If you’d rather speak to one of our experienced advisers, contact us today. We deliver whole-of-market advice, meaning we have access to all of the UK’s mortgage lenders so we can find the best deal for your situation.

Your Credit Score

Your credit score is very important when it comes to getting a mortgage, and there are multiple factors that can affect it.

These factors are:

  • Payment History (This can include loan mispayments)
  • Whether you have outstanding loans
  • Credit history length (Longer the better)
  • Going into your account overdraft

To keep your credit score high, you will need to take these factors into consideration. Keeping on top of your outgoings will help you keep your credit score high.

Your House Deposit

A deposit for a house is vital when getting a Mortgage. Some Mortgage lenders offer as high as a 95% Mortgage, This means you will only need a deposit of 5% of the property purchase price. However, most lenders will ask for a 10%-20% deposit.

It can be easy to save for a house deposit. You could put leftover money away at the end of each month. However, banks and the government are helping first-time buyers with different schemes and saving accounts. For example a LISA (Lifetime Individual Savings Account). Each month you will need to save a certain amount of money into the account, but at the end of each year, the government contribute an extra 25% of what you put in.

Your Household Income

Your Household Income is the most important step in getting any type of Mortgage. You will need to prove your monthly income, this is to show lenders that you can afford the monthly Mortgage repayments.

At the time of writing you can borrow up to 4.5x the amount of your yearly wage. For example, if your gross household income is £50,000, then you could borrow up to £225,000.

If you are self-employed, you will need to have 2-3 years of self-employed proof of income. By having this evidence you can access a larger range of Mortgages.

Interest Rates

There are two different types of interest rate types.

Fixed Rate – This means that the interest stays the same throughout your rate term. These terms are usually 2,5 or 10 years in length.

Variable Rate – This means that the interest rate could change, it could either go high or low. This needs to be considered when getting a Mortgage to make sure you can still afford the monthly repayments.

In the modern market, renting is normally a lot more expensive than Mortgage repayments.

Fees with a House Purchase

When purchasing a home there are many fees associated with it.

Here is a list of some:

  • Legal Fees
  • Valuation Fees
  • Stamp Duty (SDLT)
  • Product Fee
  • Broker Fee

It is important to gather information on these fees, just so you know exactly how much you will be paying out.

Fees after a House Purchase

After you have purchased a house, there are different utility bills that you will need to pay

These are:

  • Gas, Electric and Water Bills
  • Council Tax
  • Building and Contents Insurance
  • TV, Broadband, and Phone Bills

The cost of these bills can vary on multiple different factors. These tend to be based on the house location, or how much of the utility you are using.

As a mortgage is secured against your home it may be repossessed if you do not keep up with mortgage repayments

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Caitlin Duffy

Independent Senior Mortgage, Protection, & Equity Release Adviser

Tel – 01928 761001

Email – caitlin@dolphinfinancialltd.co.uk