Mortgage advice for first-time buyers
s the mortgage market finally opening up? Several high street banks have just slashed their fixed rate mortgages to below 3% with Santander for example now offering a 2.99% two year fixed rate deal. However, life is still tough for first time buyers. This great offer from Santander requires a 40% deposit, which for most first timers, is simply out of the question. However Santander Mortgages offer a range that do work for first time buyers, and seeing as house prices are falling, now is a good to time, if you can get a mortgage.
There has recently been an increase in the number of high loan-to-value products on the market. High loan to value refers to mortgages that don’t require massive deposits to qualify. Instead you can have just a 5% deposit and the other 95% as a mortgage. Of course repayment rates are usually higher, but it does allow first time buyers to get a foot on the ladder.
If you want to grab hold of that first rung on the property ladder, here are some tips on buying a home in the UK.
Firstly, before looking and potentially falling in love with a property, find out how much you can borrow. The worst thing to do is find a property based on the mortgage you think you will get, only to find out you will receive significantly less. Make use of online mortgage calculators to give you a ballpark figure, but you really need to have your mortgage in place and ready to go before you begin your property search. You should get a mortgage certificate from your chosen lender right at the beginning as this will speed the whole process up.
Once you have found a property you will need to give notice on your current rental property. The last thing you want to do is pay rent and a mortgage.
As soon as you are ready to make an offer get a solicitor or licensed conveyancer involved. You will need to factor in their costs to your overall purchase budget and legal fees can be quite expensive
Once your offer is accepted you will need to inform your mortgage provider so they can formalise the agreement. You will also need to arrange home insurance and get the property surveyed in order to get a standard valuation for your mortgage lender
The period before everything is finalised is the opportune time to organise utility bills and notify the local council etc. Once everything has cleared and you have paid your deposit you are ready to start your new life in your new home.
