Considering buying your first home is an exciting time! It can also be a daunting one if you are not familiar with the mortgage process. We have you covered! Here’s our ultimate mortgage guide for first time buyers.

Understand Your Financial Situation
You will need to enter the mortgage process with your eyes wide open and know exactly what financial position you are in. Make a list of your incomings and outgoings and start to look at where you can make savings. Perhaps you have some subscriptions you don’t use anymore? Are you spending a large amount on small everyday purchases? Your bank account and credit score also needs to be healthy.

Save a Deposit
5% of the purchase price is often the minimum when it comes to putting down a deposit but we would always recommend at least 10% in the UK to get you the a competitive deal and open you up to a wider choice of lenders. Refer to step one above, understanding your financial situation should get you ready to begin saving.

Choose the Right Mortgage Type
There are many different types of mortgages on the market and not all of them will suit you. Just some of the mortgage options available include Fixed and Variable Rate (read more about those in our blog here), Buy to Let, Tracker, Joint and Guarantor Mortgages. An advisor can help you decide which mortgage is right for you.

Get Pre-Approved
The next step is to get pre-approved! A pre-approval is a good way to shop around for a new home and let the sellers and estate agents know that you are a serious buyer. Lender pre-approvals are an approval in principle and means the lender is willing to lend to you based on your circumstances pending further investigation.

Budget for Additional Costs
Unfortunately buying the actual property is not the only cost that will arise during the mortgage process. You will need to budget for additional costs such as solicitor fees, mortgage protection (optional), home insurance and stamp duty. Not all of these additional costs are mandatory but are advisable.

Get Advice
If you are unsure about any of the mortgage approval process and how it will work for you, it’s best to get some advice from a mortgage specialist to find out what your options are, liaise with lenders and assist you through the mortgage application. Book in a time to speak to us here.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.