First Time Buyer Mortgages in Dorset

Before you even think about buying a home you have to make sure that you have been saving each month to accumulate a good amount of wealth to put down as a deposit on your chosen property, we always say that bigger is better when it comes to deposits for a property. This is because a borrower’s deposit is a lenders protection. When deciding whether or not to accept a mortgage application, lenders have to think about the challenge potential borrowers may encounter during the life of the mortgage. Having a bigger deposit will make these challenges less significant to the mortgage and therefore will increase your chances of being accepted. A bigger deposit will also bring down the monthly repayments and be seen as more affordable.

When a mortgage lender is looking at your application and your finances, they will want to see that you have everything in order and that you aren’t spending your money things that aren’t necessary. For this you will need to make sure that you reduce your outgoings to only spending on things that you need and not spending your money on anything that might be considered as not important. Reducing your debt or being debt free will also help as it will show that you don’t have any other significant payments coming out of your bank each month. Having a regular income is also very important because if your income isn’t guaranteed each month then the lender could reconsider what they can lend you.

As well you can also get help from the government with help to buy schemes, these schemes are available to people buying new built homes; 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. This will mean that you then only have to get the remaining 75% of the property purchase price on a mortgage.