The average price of a UK home increased to a nineteen-year high of 15.5% in July, making it well more than a UK worker’s average salary. Due to this, funding a house purchase is a dream that very few manage to turn into a reality, and for those who do manage, the process is comparable to navigating a minefield blindfolded. From handling legal documents, trying to compare mortgages, and filling out surveys, here are several things first-time buyers should know.
Whether you need a new mortgage for purchase, buy to let, or due for a re-mortgage, it is essential that you compare mortgages from different lenders before you sign on the dotted line. Failure to do so could mean that you end up paying way over the odds for your mortgage, and in a time where the cost of living continues to rise, any money saved is helpful.
You can compare mortgages from different providers by contacting an independent mortgage broker or using an online mortgage comparison site like Quotezone.co.uk, which lets users shop for mortgage rates from various providers to find the best deal. Find out more by visiting their site or contacting them directly and seeing how they could help first-time buyers find a deal today.
Save A Big Deposit
The most daunting part of purchasing a property is saving up for the down payment, and since most lenders like to see at least 20% upfront, it means scrimping and saving thousands. Saving up a large deposit means you are more likely to get a lower rate, helps persuade lenders that you are a reliable candidate to loan to, and don’t have to borrow as much.
There are various ways that you can try to save up as much money as possible, from asking your friends or family members for help, cutting the cost of your rent, and much more. However, if you are struggling to save a large deposit, you could consider applying for a government help-to-buy scheme, which can help first-time buyers be approved for a mortgage with just a 5% deposit.
Talk To Your Friends And Family
Just because you’re a first-time buyer doesn’t mean that you must suffer in silence; chances are that many of your family, friends, and co-workers have already been through the home-buying process and would be able to shed some light on anything you are unsure about.
Don’t be afraid to approach people you know who have purchased property before and ask them any questions you may have about the process since the process will be fresh in their minds, so they should be able to assist as best as they can. Failing that, you should aim any questions to your independent mortgage advisor or whoever is helping you with your purchase.
Consider Going Virtual
When applying for a mortgage, the bank is usually a first-time buyer’s starting point, yet one option that is becoming increasingly popular is online mortgage brokers. Consider looking at sites like Habito or Trussle for more information about online mortgage brokers.