Mortgage Tips for First-Time Buyers

By Bea Patel, Director of Shop for an Agent

As a first time buyer, you’ll be excited about getting on the property ladder. But there are many factors to consider other than the type of house you want, and the area you want to live in.

Your financial situation, budget and deposit amount are important factors you need to iron out before you can look for a mortgage. You’ll need to make sure you can afford to pay your mortgage, factor in the costs of buying a house – such as fees and stamp duty costs, and after deducting the costs, have a set budget of what you can afford to buy and how much deposit you have available. If you have a bigger deposit and a better credit rating, you’ll get better rates and a wider choice of options.

The prospect of finding a mortgage can leave you feeling overwhelmed, stressed and daunted with the whole situation. Once you are ready to look for a mortgage, consider the following tips to help you find the best mortgage deal that’s right for you.

Shop around and get advice

There are many mortgage offers available and this can be overwhelming and confusing. Buying a house is a huge financial commitment, and finding a suitable mortgage as a first-time buyer will be new to you.

You should do as much research as possible and seek advice from a mortgage broker. They can advise you on your options and help you find the best deal for your circumstances. A lower mortgage rate may come with higher arrangement fees, so find a mortgage broker who can look at the whole market; as lower arrangement fees may offer help with other fees. Look at the whole picture. Your mortgage broker can help you compare the overall cost of mortgage loans for the full deal period.

Be honest and realistic about your situation

Lenders base how much they’ll lend you on your income and expenditure.  Be honest and realistic about your situation from the start.  You should be able to afford your monthly payments even if interest rates increase.
Ask questions

Don’t be afraid to ask questions. If you’re unsure of anything, clarify it so you understand.

Think about the future

Think about when you may move home again or take out your next mortgage. Some lenders offer deals to new customers so you may miss out on this – forcing you to change lenders which will cost you more money. Check this with your potential lender and make sure you’re happy with everything before committing to any agreements.

Read the small print

Before you sign any documents read the small print.  Make sure you’re happy with the details of your mortgage and your lenders terms. Again, if you’re unsure of anything – ask.

Shop around for other services

Once you have your mortgage secured, you’ll need to think about getting other services such as building insurance. Shop around for competitive deals. You’re mortgage lender may offer these services, but don’t settle for the easiest option. Instead, research and compare more companies to find the most suitable service for you.

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