Can I afford the property?
It’s not uncommon for first time buyers> to overstretch themselves financially in order to buy a place they love. However, while it may be tempting to take out the biggest loan you can get your hands on, it’s wise to do some calculations to determine how effectively you’ll be able to manage your finances once you’re in your new place.
After paying essential living costs such as monthly mortgage payments, bills and council tax, will you have money left over for clothes, entertainment, holidays and savings?
It’s important to consider your ability to save because in the event of a job loss or rising living costs, you may need an emergency fund to fall back on.
Is homeownership really right for me?
Here in the UK we’ve become obsessed with homeownership. Often, even those who are perfectly suited to renting scramble to get on the property ladder and overstretch themselves financially.
Buying a home is perfect for those who wish to build equity in a property and have freedom to make substantial changes to their property. However, homeownership isn’t for everyone and for those looking for flexibility, less risk, and fewer responsibilities, renting does have its benefits.
Can I put down a bigger deposit?
It’s generally advised that home buyers put down as big a deposit as they can afford. By doing so, you can reduce the amount you need to borrow, access a broader choice of mortgage deals and reduce the amount of interest you need to pay on your loan.
It may be possible for you to purchase a property with a 5% or 10% deposit, but if you’re able to save more money, putting down 20% or above can often see you in a better position financially.
How much money will I need for home buying costs?
As wise as it is to put down a large deposit, it’s vital that you take home buying costs into account too. You’ll need money for solicitor fees, mortgage fees, valuation costs, and if you’re buying a home worth more than £125,000, you’ll need to take stamp duty into account too.
Which mortgage deal is most affordable for me?
A mortgage is likely to be the biggest financial commitment you ever make in your life and when borrowing such a large amount of money, it’s important that you get the best deal you can.
Rather than turning straight to your current bank for a mortgage, it’s wise to compare deals from a number of different lenders first. By contacting a mortgage broker for help, you can effortlessly find the best mortgage product for you and potentially save yourself thousands of pounds over of the course of your mortgage deal.
Looking at everything from your income to your credit score, a mortgage broker will assess your finances and ability to afford a mortgage. They’ll highlight the most suitable mortgage deals for you and point you in the direction of the lenders most likely to approve your application.
If you’d like help buying your own home, please get in touch with the team at TaylorMade. Our team of experienced mortgage brokers will help you every step of the way, from the moment you start looking for a loan right through to completion of your first home.
