Looking for your first mortgage? We’ve got the best tips you need to land yourself your very own mortgage.
Purchasing your very first home is probably one of the biggest and most important moments in your life. Owning your own home is no easy task, and whilst you’d never be able to buy one outright – unless you’re minted – landing yourself a mortgage is an essential part of purchasing your very own property. .
So, how do you get yourself a mortgage? What do you need to do in order to find yourself the best deal? Well, we’ve spoken to Zing Mortgages, a leading mortgage broker in Essex, about what you need to do in order to get yourself the right mortgage. .
We’ve put together a guide on how to land yourself a mortgage. With loads of handy tips and information about what mortgages are and how to find the best deal. Ready to find out more? Keep reading our post to find out!
What are mortgages?
Okay, let’s start with what a mortgage actually is – because we all have a rough idea, but here’s some clarity. Mortgages are what lenders provide you, in order to buy yourself a home. These ‘loans’ typically last for around 25 years and are secured loans. Meaning, if you can’t manage to keep up the repayments on your mortgage, your home could be repossessed – but this is rare, and as long as you’ve taken out a mortgage you can afford, this shouldn’t happen to you. .
However, it’s not all doom and gloom, and this point leads nicely to our next. We’re going to talk about, affordability – so you don’t end up with your home being repossessed.
Affordability
There’s a lot that comes with owning a home. Council tax, bills, insurance etc. can all add up, so taking out a mortgage you think you can afford, may not be advisable until you do all your homework. See, if you find a mortgage and think ‘that’s manageable’, once you take into consideration all the bills and other things you’ll be paying for on your home, it can leave you living to the end of your wages each month. .
You need to find a property and mortgage you can afford, and for that, you need to research. Look at your income and outcome, how much are you putting aside for a deposit? If you’ve got enough deposit, could you use the money you’re saving to pay your mortgage? These are things you need to consider before finding a property/mortgage. .
There are loads of mortgage calculators you can use, to see how much you could borrow. It will be based off your income and the size of the deposit you have for your new house.
Where to find a mortgage?
There are thousands of mortgage brokers and lenders – specialist brokers, like Zing, but there are also banks and other lenders who can provide you with a mortgage. The key is, to make sure you do your research. You need to find a mortgage that’s right for you, which means, you need to shop around. Seek the help of an independent mortgage adviser, for impartial information on your mortgage options. As the name suggests, they don’t work for a broker or lender, they’re there to find you the deal that’s right for you, displaying all your options in an unbiased way. They won’t be trying to sell you a mortgage – however, they do charge for their services.
3 Tips to Land a Mortgage
So, we’re here. We’ve got all the tips you need to land yourself a mortgage. .
1. Deposit Size
If you want to make sure you get the best mortgage possible, you need to come to your lender with a full deposit. Usually, your deposit needs to be around 5-10% of your desired house’s price – however, bigger is better. By this, we mean that the more deposit you have, the better position you put yourself in – because effectively, you have to borrow less over the same 25-year period.
2. Shop Around
Any expert purchaser knows that you should shop around for the best deal. You need to find a mortgage that works for you and is affordable. Which means you need to do a little research in order to find the deal that’s right for you.
3. Improve your Credit
Like any financial product, you’ll need a good credit score to qualify for a mortgage. And the better your credit, the better rates you may receive. Your credit score is a digitised number of your financial history, and it’s how lenders assess your ability to keep up with repayments. If you want to make sure you’re approved for a mortgage, make sure your credit is up to scratch. .
If you follow all of these tips, you could find the right mortgage for you. Make sure you have a deposit that matches or exceeds lenders’ expectations, as the more you put down, the less you’ll have to borrow. It’s vital to ensure you don’t just grab the first deal put on the table, make sure you shop around and find a mortgage that works for you. Finally, make sure your credit score is good in order to qualify for a mortgage. Remember, if your credit is bad, lenders may be less likely to offer you a mortgage.
