Last week Halifax Reported that First Time Buyers were at their highest since 2007.
An estimated 326,500 people purchased their first house or flat in 2014; a 22% increase on 2013’s figures.
At Michael Usher Mortgage Services, we hope the trend continues and this year we see even more people having the opportunity to make that big purchase.
We want to help.
Because we know there’s nothing quite like that feeling of being handed the keys to your first house or flat, opening the front door and knowing that it’s yours.
Getting a Mortgage is pretty daunting but relax and don’t worry. Here are the top 5 things you need to know before you dive head in:
Credit Cards are good
Although we should quickly add a caveat to this. Credit cards are good if you pay them off.
Having lots of unpaid debt is not a good thing, but having managed debt that you pay off monthly demonstrates that you can handle credit which in turn gives the Lender’s confidence that you will be able to handle a mortgage.
Re-think your spending
It’s true: the rules have become tighter and last year there was a drop in the approval numbers. So think now about how you’re spending your hard earned cash. Things like paying for the gym but not using it or eating out expensively every other night. The Lenders will check your affordability and apply what’s known as a ‘Stress Test’ – their way of reassuring themselves that if the interest rates rise, you can still afford to pay off your mortgage.
It’s easy to just go direct to your Bank and ask for a mortgage, but it’s worth looking around. In today’s climate of low interest rates and a bountiful market there is good competition of rates from many Lenders. You could do this yourself, but our qualifications mean we know whether you are eligible for that rate you saw on that comparison website. Without the right advice, you could end up applying for mortgages that you are refused. Ultimately you could destroy your credit rating.
To fix or not to fix
That is the question. The answer is wholly dependent on your circumstances, the mortgages on offer that you are eligible for and the ‘current economic climate’ at the time you are looking to purchase. But again, it comes down to good advice – something we can help you with.
It’s cliché but true: a property is one of the biggest (if not the biggest) investment you will ever make and therefore it is vital that you think about how you are going to protect it. A range of life insurance, critical illness cover and income protection options are available to help you protect you, your family and your Mortgage. Once we’ve met you and understood your personal circumstances, we’ll help you to budget your mortgage to include these.
Need some Advice?
If you’re not sure what position you’re in and if you would be approved for a mortgage, call us today on 01276 670777 for a chat or to arrange an appointment.
Our appointments are available Monday to Saturday at times that suit you and you can visit our offices on Frimley High Street or we can arrange to visit you at your home if that is more comfortable for you.