Buying your first home is so exciting! There’s so much to think about; ideal location, the number of rooms you need, whether you need a garden or not, should it have room for bikes or off street parking. This list is long and that’s before you get to the fun part of planning the decor!
How you will get a mortgage is probably not top of mind when planning your first home but it is the most important task you need to complete.
And it is complicated.
There’re so many questions every first time buyer will have.
- How much could we borrow?
- How large a deposit do we need?
- How much could we afford to pay each month in mortgage re-payments?
- What kind of mortgage do we want?
- What do you need to do to get a mortgage?
- What kind of property do mortgage lenders prefer?
The list is endless. So where do you turn to for help?
The advantages of using a mortgage advisor
If you find a good mortgage advisor (or broker) they will help you navigate the complex process of finding your perfect mortgage and be able to answer all of your questions.
When you think the time is right to start looking for your first home you should consider finding your advisor first. It is best to understand your options; how much you could borrow and afford to re-pay each month before you start house hunting. If you go house or flat hunting without this sort of information you could find the perfect flat or cottage and then realise it’s out of your budget, which would be so disappointing.
A reputable mortgage broker will be able to talk you through the whole process of applying for a mortgage and be able to answer all your questions.
Talk to a few different mortgage brokers and pick one that you think you’d work best with. It’s important you get on with them as they’ll be a very important part of your life for an intense period of time!
Many brokers will charge a mortgage arrangement fee which is payable once you have a firm mortgage offer. Don’t be put off by this. It is usually a few hundred pounds and the work they do for you, the help and advice they provide is well worth it!
Freddie and Ellie of Bristol told me about their recent experiences:
We’re really thankful we used a mortgage broker to help us start our journey to buying our first home. We’re still in the throngs of it now, signing endless paperwork, etc. but having help and guidance from day one from our mortgage broker was brilliant. As first time buyers we didn’t really know where to start or what we were looking for, so having someone to clear things up and advise us has been a lifesaver.
There are several reasons why using a mortgage broker can make the process of buying your first home less stressful, easier and more straight-forward. Here’s our summary of the specialist help they can provide.
They have access to lenders and products you can’t find yourself
There are some lenders who only work with brokers and don’t offer their products direct to customers. There are also products and rates other lenders have that are only available through a broker. Using a broker means they can find the best possible product and lender for you and your circumstances.
They will know which lenders demand the highest or lowest deposits, offer the longest mortgage terms (how long you borrow the money for – 40 years is not unusual now), the best interest rates and best fixed term deals.
There are lenders who will allow professionals to borrow higher multiples of their incomes, for example. There are other lenders that allow family member incomes to contribute to how much you can borrow even if that person isn’t on the deeds as an owner. They understand the options and will explore them for you. They’ll answer all your questions, provide a recommendation that’s tailored to your circumstances and hold your hand through the application process.
Don’t be under any illusion, getting a mortgage sorted out is a complex and long-winded process, especially when you’re a first-time buyer. A good broker will spend a lot of time understanding your current financial situation so that they can work out exactly how much you can afford to borrow and re-pay each month. This means you’ll need to provide a lot of information and prove what you say with documents, but they will explain everything to you and make sure you understand what’s needed, why, and by when.
Once they have all the information they need, they will fill out all the forms for you and provide a mortgage recommendation that is tailored to your circumstances. They’ll explain your options and make sure you understand the commitment you are taking on.
Having a good mortgage broker to explain everything and walk you through the process will remove a lot of the stress and much of the paperwork, too. You can then be confident that the mortgage you take out is the best fit for your circumstances.
They can help you navigate the whole buying process
Once they’ve identified the right mortgage product for you, they’ll help you get an ‘agreement in principle’ also called a ‘decision in principle’ which is an indication from a lender of how much you can borrow.
Having this in place puts you in a great place to start house or flat hunting. You’ll know exactly how much you can afford to offer, and sellers like to know you have that in place as it shows you’re a serious buyer. Once you’ve found the perfect place, had your offer accepted and your mortgage offer confirmed, the work begins!
A good broker will liaise with your solicitor and smooth the process of buying for you. They might be able to help you find a surveyor or a solicitor and will be able to hold your hand through the whole process.
Buying your first home can be a daunting prospect with so many hoops to jump through but a good mortgage broker will help you at every step of the process and be an invaluable ally.
We’ve hand-picked our mortgage advisor partner for their commitment, expertise and dedication to providing great customer service. Please get in touch for a no obligation chat and take the first step towards your first home!
