Everything You Need To Know About Your First Mortgage

*this post was written in collaboration with Flagstone

Mortgage brokers

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Getting on the property ladder is becoming increasingly difficult, so much so that being able to get a house in your 20s is seen as a huge achievement. Applying for a mortgage can be a bit of a minefield if you don’t really know what you are doing. It is always worth seeking as much professional help as you possibly can from professionals during the process. Although it can be quite a stressful process, the end result can leave you owning a dream home you never imagined possible. As soon as you start saving for your deposit you should start to think about the mortgage process and doing some research so that you are prepared when the time comes, but here are some tips.

Get a good mortgage broker

Looking for a good mortgage broker is hard work, but there are a few things you can look for to ensure they have your best interest at heart. Be wary of any mortgage broker that might try and persuade you into a property you can’t really afford. Any good mortgage broker should also keep up a good stream of communication with you through the whole process.

Figure out how much you’ll need for a deposit

Before you start saving and looking into mortgages you will need to know how much of a deposit you need. Typically, a deposit will be between 5% and 20% of the property value. This again is something that a good mortgage broker will be able to help you with, as they will help you to find a cheaper mortgage based on the amount of your deposit. If you can afford a deposit over the minimum of 5% you might be able to negotiate and get yourself a better rate for your mortgage. 

Budget for the other costs as well

Unfortunately there are quite a few other associated costs to buying your first time home than just the cost of the house itself. You will need to ensure you have saved enough to cover things like solicitors fees, survey costs, building insurance, removal fees etc. Stamp duty is something else you also have to take into account. This can be quite difficult as you will often not know the final costs before you need to pay them, so make sure you do your research to find out roughly how much you should expect to pay.

Take charge of your finances

When you are applying for a mortgage, your finances will be looked at in quite a lot of detail. You will need to provide evidence of all of your incoming and outgoing oney. It’s definitely worth taking a look at your finances yourself before you subject yourself to professional scrutiny. Try and look for things that might not add up, or might set off a warning signal to any finance professional that is going to look into your financial situation. It’s also worth going through your credit file as well, even if your credit rating is good.

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