If you are thinking about buying your first home, the process of finding the right mortgage, with over 60 providers and over 3000 products to choose from can be daunting.
This is where your independent mortgage adviser can help you navigate the mortgage maze. The cost to you of making the wrong choice could prove expensive. So what do you need to know?
A good starting point would be to check how good your credit rating is. The three main Credit Reference agencies are Experian, Equifax and Call Credit, and it is worth paying the small fee that these agencies charge, to get a personalised copy of your report. Once you have your file, check everything in it for accuracy, and contact the agency to change anything which is incorrect.
The amount of mortgage you can borrow will depend mainly on your income, then the amount of unsecured borrowings you already have, and intend to keep, (for example a car loan with over 12 months payments remaining).
Income multiples do vary between lenders, as a rough guide, a typical multiple is four times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders criteria. Some lenders do not use income multiples, but use criteria based on affordability.
As an example, if you earn £30000 per annum, and your only borrowing is a £150.00 per month car loan, you may be able to borrow £112800 (£30000 minus 150 x 12 months = 1800, giving you an income of £28200 x 4 =£112800)
Some lenders are more willing to lend to first time buyers, so it is always worth asking us to research the market on your behalf.
Whatever your mortgage needs are, contact us today to discuss your options!
It is also worth remembering what the additional costs are, on top of your deposit and mortgage that you will be expected to pay.
Survey fee / Valuation fee for the valuation of the property, this fee varies between lenders, and may include a non-refundable administration fee, and is normally paid with the application. The whole fee is non-refundable once the valuation has been carried out. The type of valuation you choose will depend on factors such as the age and condition of the property, and whether there is any history of subsidence in the area. There are three types:
Solicitors fees - A solicitor is needed to assist in the legal aspects of moving home, such as transferring the legal title of a property from one person to another. This price varies from solicitor to solicitor, so always ask for a quote. For an instant quote from up to ten solicitors, please click on this link.
Stamp Duty - This table shows the latest stamp duty rates on Residential properties:
You will pay:
As an example, If you were to buy a property for £275,000, you will pay £3750 of Stamp Duty. This is made up of:
You may also have to pay an 'arrangement fee' to the lender for a mortgage, and in some cases a 'Higher Lending Charge' this is an insurance for the lender for you defaulting on your payments, when your property is worth less than the loan.
The advice you receive on mortgages from North East Mortgage Brokers is unbiased and free, and at no point will we charge you for our mortgage services. We are paid a commission from the lender.
You can choose how we are paid for mortgages. We can accept commission from the lender in which no fee would be payable. However if you want to pay for our services by paying a fee, then a charge of 0.5% of the loan will apply.