When you are looking at buying your first property there are many ways to increase your chances of obtaining your first mortgage. We recommend that you save as much as you can each month to go towards to deposit on the property. Having a bigger deposit will increase the chances of your application getting accepted. This is because the lender will use your deposit as protection; This means the bigger your deposit is the less exposed the lender is to changes. A bigger deposit will make for smaller monthly repayments as you won’t have as big of a mortgage. You should also keep some money aside for moving costs. Buyers may be liable for stamp duty and you will also need to pay solicitor’s and surveyor’s fees. The actual cost of moving from A to B and furnishing the property will depend on a variety of factors.
You also want to try and reduce as much of your outgoings as possible, this will mean that you can then dedicate more of your wage to paying off the mortgage. Reducing your debt or being completely debt-free will show the lender that your mortgage will be your main focus and that you won’t be distracted by other debts. Receiving a regular income will also help secure a mortgage as then you will be able to pay off the mortgage each month. Being in possession of a clean credit score will help to secure your mortgage.
From April 2021 there is a new help to buy scheme launching from the government. This will help people get on the property ladder by giving them money towards the cost of a newly built home. You can borrow a minimum of 5% and a maximum of 20% of the full purchase of a new build home. There are price caps based on where you are buying your home. The loan from the government will be interest-free for 5 years and at the start of year 6, you will start to pay the interest on the loan. You will only pay the interest which means you won’t be reducing the amount you owe to the government. If you want to repay the equity loan you must pay it in full or part payment that must be 10% of the value of your property at the time of repayment.
We are a professional finance broker with offices in Poole, Dorset. We are providing we can help people with all types of mortgages so no matter what financial circumstances you have right now we can help. Fed up with the high-pressure sales tactics of the large corporates? Barrett Mortgages was set up by founder Darren Barrett in 2009, this was during some of the hardest market conditions the industry has seen. The unparalleled, clear, trustworthy, honest and upfront service offered by us has meant our business has thrived during these times. Especially as people have needed more individual and specialist help.
All of our staff are fully qualified, experienced and chosen based on their keenness to provide the best possible experience for our customers. We promise no pushy hard sales tactics and have built a strong reputation. This is important to us as we rely heavily on referrals from clients.
Get In Contact with us if you are interested in any of our services or advice.