Getting onto the property ladder is a key goal in everyone’s lives, however, it can be a daunting prospect with all the conflicting advice out there. Our advisors will be able to help you and assist you through the whole process from the initial contact to making you a qualified purchaser and a desirable buyer for many estate agents and sellers alike. Buying your first home can be an experience you’ll never forget. While the process of buying doesn’t actually start until you find a property that you like, planning ahead can benefit you a lot and the importance of it cannot be overstated, having your family finance organised so you have savings in place to put down a respectable deposit and still be able to afford moving costs.
When it comes to accumulating a deposit the bigger it is the better. This is because the borrower’s deposit is a lender’s protection. When deciding whether or not to accept a mortgage application. Lenders have to think about the challenges potential buyers may encounter during the life of the mortgage. These may include temporary falls in house prices, periods of unemployment and periods of a reduced income or at least reduced disposable income. The bigger the deposit a potential borrower can put down, the less exposed the lender is to changes. A bigger deposit will also mean you will have smaller repayments and will be seen as more affordable, this is because people that need to borrow less repay less.
It is also important that you set some money aside for moving costs and this is because buyers may be liable for stamp duty and will need to pay solicitor’s and surveyor’s fees. The actual cost of moving from A to B and of furnishing and equipping a new home will depend on a variety of factors. It can, however, be useful to have a budget for unforeseen expenses. This is basically covering the cost of anything that you didn’t notice before you moved into the home, so you don’t have any nasty surprises that you can’t deal with.
The government schemes can also help make the process easier of getting onto the property ladder with a new built. Provided that buyers can put down a deposit of at least 5%, the government will lend up to 20% of the purchase price of the property and then that will leave the remaining 75% of the purchase price. The mortgage guarantee can be used to buy either new-build or pre-owned property. In this scheme, lenders essentially insure a part of the mortgage with the government. Which means that will get that part of the mortgage back if the borrower is unable to make the repayments. You can also speak to your family members as older people who have had more time to accumulate personal wealth, may be willing to act as mortgage guarantors for younger people that they trust.
We also have some other mortgage services you can take advantage of, for example, if you are looking to start or expand a property portfolio, we can give you advice on the best way to go about that and get the best deal for a buy to let mortgage.