The Inside Edge
As a First Time Buyer, buying your new home should be one of life’s most exciting experiences, but without careful preparation, research and the right mortgage deal, it can quite easily turn into a nightmare.
Your new home will probably be your biggest asset, and your mortgage will probably be your biggest liability, so give them both the respect they deserve, after all this is what you have been working towards.
A few months prior to looking for your new home, arrange an appointment with an Independent Mortgage Broker for a feasibility study.
As the name suggests, this will let you know how feasible your objectives are. As a First Time Buyer, there will be a lot of questions you will want to ask, or understandings clarified. A Feasibility Study will aid you in many ways and most importantly settling on a budget figure for your monthly mortgage payment, and if you feel appropriate, the premiums for mortgage protection plans.
Ask questions and fully discuss mortgage options, including;
1. How can I repay my mortgage?
2. What is the difference between the Bank of England Base Rate and the lender’s Standard Variable rate and how can it affect a deal?
3. Can I overpay on my mortgage without penalty?
4. What happens if I want to move home within an initial deal period?
5. What are the options in relation to protecting my mortgage payments?
Lender’s criteria have tightened up considerably, especially where First Time Buyers are concerned and it is very worthwhile having a look at your credit report prior to submitting a mortgage application to ensure that there are no apparent issues which need to be rectified first. More importantly by checking your credit report regularly, you can be aware of any identify theft attempts, and should you be an unfortunate victim to this, this too can be rectified.
By preparing thoroughly prior to placing a mortgage application, you can ensure that you will result in a mortgage deal which is affordable and appropriate for you. By good preparation, it will also minimise the chance of declined applications resulting in ‘foot-prints’ being left on your credit report which can lower your score causing potential problems for the future.
Carol Brown has worked in the Financial industry for over 20 years. Over this period her career has taken a course through banking, running a high street Estate Agency, heading up a conveyancing team and working alongside Financial Advisers in a large National Insurance Company. As an Independent Mortgage Broker, Carol will ensure that the product recommended is the most suitable for your needs and circumstances.
Carol D Brown Cert CII(MP & ER)
The Financial Services Authority does not regulate some forms of mortgages. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances, but we estimate that it will be £250.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE
Please note that there may be variations for those living in Scotland and Northern Ireland.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 4.6% APR
The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
A typical fee for Mortgage Advice is £250.
As we are independent you have the choice whether to pay a fee for the mortgage advice we provide. Typical .5% of the mortgage amount.