First Time Mortgage | 5 things to consider
This week we have 5 things to consider if you're looking to get a mortgage for the first time. During lockdown, use your time to ensure you are in the best possible position to make a Mortgage application when the market starts moving.
If you're thinking about applying for a mortgage soon, here are our 5 pointers:
1. Check your credit score
See where improvements can be made. Use a credit scoring agency to check your score – they provide reasons why your personal score might be low and instructions on how to improve it – simple things like being on the electoral roll can have a massive impact!
2. Affordability is a key factor in getting a mortgage
Lenders will go through typically 6 months’ worth of bank statements to make sure that your application matches your bank statements and that you can afford the repayments. Lockdown is prime time to go through your bank accounts and have a self-audit. What you can cut back on? What unused subscriptions can you cancel?
3. Spend this time researching which sort of mortgage will closest match your needs.
There many different types of mortgages available, designed for different purposes. Consider which type might most accurately match your needs.
4. Budget.
Consider the other mandatory costs such as stamp duty, brokerage and arrangement fees, conveyancers and solicitors. These additional costs can’t be rolled up into your mortgage, so make sure you have factored them in to avoid unwelcome surprises.
5. Save emergency funds
Life is still going to happen when you’re buying a house, make sure that you have savings set aside which remain easily accessible in case of emergency (car breaks down/boiler blows up!) either during your purchase or once you’ve completed. Can you transfer the money you would normally be spending on commuting into another account to build these emergency funds?
Your home may be repossessed if you do not keep up repayments on your mortgage.
AAG Wealth Management is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority). AAG Wealth Management is a trading name of AAGSJP Limited.