First Time Buyer? Need a Lender Agreement in Principal?
Are you a first time buyer and don't know where to start? In this 3-4 minute read we can point you in the right direction....
Firstly you need to look at how much you can afford when looking for a house.It is important to understand your budget so that you don't overextend yourself. Most lenders will have affordability calculators on their websites however you run the risk of getting hounded if you enter your personal details in. We can help you with this and initial mortgage advice is always free however if you want a rough guide a good starting point for calculating affordability is through the use of an income multiplier. This multiplier uses your joint income as a starting point, and then adds four times this figure to give you an idea of the maximum loan amount that you will be able to afford. Once you have calculated your annual joint income you need to then deduct the annual cost of your loans and credit cards. With credit cards use the monthly minimum payment and times by 12. Whatever figure you're left with times by four and this will give you a rough idea of what most mortgage lenders will lend. You'll then need your deposit on top of this (Minimum 5%) which will give you the rough maximum house value you can go up to.
The UK mortgage market is a complex one, so it's worth doing your research to make sure that you get the best deal for your circumstances. A great way to do this is by getting professional advice from a whole of market broker.
Whole of market brokers can give you an unbiased assessment of the mortgage market and help you work out which deal is best for your individual needs. Unlike a bank or building society, they are not tied to any one lender, so they can offer impartial advice on a range of mortgages from the entire market. This means that you're more likely to get the most competitive rate, as well as access to products that may not be available on the high street.
The mortgage market has seen some changes recently, with slight decreases in lender rates even though the Bank of England's base rate has gone up. This means that now is a good time for first time buyers who are looking to take out a mortgage to shop around and compare different deals. A whole of market broker can help you to do this, as they are able to quickly identify the options that are most suitable for your situation and guide you through the process.
We have Mortgage Advisers on hand to help you and have a few options to get you started.
Talk to use today by calling 01244 836636.
Click here and fill in your details at the bottom of the page and someone will be in touch today.
Out of hours? Or want to get this sorted yourself....Fill in our quick 10 minute online Decision in Principal form and we'll have an Agreement in Principal back to you within 24 hours.
For single applicants click here
For joint applicants click here