First Time Buyers Mortgages
Being a first time buyer is a daunting thing. You are about to make the biggest purchase of your life so far. You are trying to understand a new industry called financial services. The world and his wife are offering advice and everyone is giving a different opinion. So what is it you should be thinking about?
First thing first do not worry. Yes the industry I complicated and many companies offering different products. But, you must remember all these companies are there to help and you do not need to pay for advise, if someone does want to charge you for advise the changes are the advise will not be he best in the marketplace.
Firstly, how much can I borrow? Once you have this number you can start to look for the property you want to live in.
As a rough rule of thumb you can borrow 4 to 5 times your earnings. The lender will be looking at the deposit you have. The higher the deposit the more likely the lender will let you borrow a greater multiple of you income. They also look at the commitments you already have, such as, credit cards, car payments and other loans.
So if you earn £25,000 you can borrow £100,000 to £125,000. But this is only a rough guide at this stage. Do this quick calculation and then research the house market to make sure you can afford a property in the area you are looking to live.
Once you have an idea of the property you are looking for and have a rough market price it is time to do the proper research. All companies will ask if you have found a property? The reason is these companies are there to make money. They only make money if they sell you a mortgage and once that mortgage is in place. So they don’t want to waste time with people that are just looking and have found a house they are interested in. Trust us when speaking to a lender or broker if they believe you have found the house you are looking for they will be much more helpful.
So you have an understanding of the property you are looking for and the value and location of that property. Time to start speaking to the professionals and not the bloke down the pub that has a mortgage and is the expert or everything.
The professionals have computer software the researches the market and enable them by asking a number of questions what the most suitable product is from the many thousands. Remember the professional has work to do at this stage and will not get the reward unless you take the mortgage out with them. So when speaking to them sound as if you are going ahead, you have the property in mind and you want to understand the costs of the mortgage before making an offer.
The professional will be able to provide an AIP or approval in principle. What these means is the lender will lend you the money from the information you have provided and that the information is correct. Once you have the AIP you are able to start making offers on the property knowing full well you can get the mortgage.
So the big question is which professional do you speak to? Well, it makes sense that you speak to someone that can offer advise on all or most of the products in the market place.
The correct answer is to find a broker and add provide a whole of market quotation; this is a question you should ask up front. If they do not offer whole of market it could you a huge amount of money.
Always make sure that you get at least two quotations from either two brokers or one broker and one from the high street.
If you complete the short enquiry form we will pass your details on a broker that has the whole market and has been vetted and checked.