BUYWhile we are delighted that the Government’s 5% mortgage initiative will help thousands of home movers, we are acutely aware that many first-timer buyers in South West London will be purchasing a home above the £600,000 threshold outlined by the Chancellor.
With this in mind – and with the stamp duty holiday extension perhaps spurring renters to take their first step on the property ladder – we have worked with Capricorn Finance to share our top five tips for those applying for their first ever mortgage:
- Sit down with an independent mortgage adviser: it’s very valuable to obtain advice from a broker not tied to a specific bank. An independent adviser will be able to assess whether you’re in a position to secure a mortgage before you apply and clarify what actions, if any, you need to take to improve your prospects.
- Obtain a decision in principle: this is incredibly important as it allows you to obtain pre-approval from a bank before seriously starting a property search. A mortgage decision in principal tells sellers that you’re in a good position to buy, and lets you know you shouldn’t encounter credit hiccups when progressing your purchase.
- Ensure you have your deposit: you won’t be able to make your purchase legally binding without having funds available, so it’s important you plan ahead before starting the purchase process. You’ll need to show your mortgage lender evidence of your deposit to support your application.
- Build a good credit history: late or defaulted payments on credit agreements can have a significant impact on your ability to secure a mortgage, even if this happened a few years ago. You can sign up to a reputable credit referencing agency to view your credit history and score.
- Avoid taking out unnecessary credit: lenders will factor in commitments, like car finance, to your mortgage affordability and this could impact the total loan amount available to you.
If you’d like a meeting with Capricorn Finance to discuss your mortgage eligibility, contact Aspire today.
