Without a doubt, having one’s own home is the dream of many individuals in the UK. But those who are planning to buy their own property for the first time are more apt to make a faulty decision – simply because they do not have enough information on their hands or they are simply swayed by seemingly good mortgage deals that end up affecting their future finances in a negative way.
So if you are a first-time property buyer and are seeking to find the ideal mortgage deal for your needs, what are the main aspects you should consider? Below are a few things you should be aware of before signing that mortgage deal.
The deposit: how much you can afford
The first thing you should think about when planning to buy property is the amount of deposit, especially how much deposit you can realistically afford. The deposit is a real challenge for first-time property buyers, since you would need (at the very least) 10 percent of the property’s purchase price before you can begin to have access to a good mortgage deal.
Keep in mind that the interest rate of your mortgage will definitely be higher if your deposit is lower. If you would like to get a good mortgage deal, therefore, you should make sure to have enough deposit – in fact, most mortgage lenders offer the best deals for those who are able to make a 40% down payment or more.
That being said, it may be in your best interest to wait a while. Save money first and set it aside as your deposit for your property. Once you have come up with a substantial sum, you can begin to take your pick from better mortgage deals. More mortgage deals will be open to you if you can make a higher deposit. But if you really must buy property now, then at least make sure you can deposit 10% of the property’s value.
Other things you can do to get a better mortgage deal
Whilst it is important for you to be able to come up with a good deposit amount, it is also important to arm yourself with the right knowledge and information before settling for any mortgage deal. You should do your research and shop around – get recommendations and advice from family, friends, and acquaintances, and speak with a mortgage advisor if you want to get the latest info on the market.
It is also important to remember that a good mortgage deal is not only about low rates. As a matter of fact, some of the mortgage deals with the lowest interest rates are likely to include a hefty fee for arrangement going up to as much as a few thousand pounds. You have to ask about the arrangement fees, and if you can get a mortgage deal with no fee or one that offers help for additional costs such as fees for valuation, then this may be better for you.
As a first-time property buyer, do not be swayed by low interest rates – instead, learn to distinguish the complete value of the deal, especially the terms, the fees, and other considerations.
Getting the right information is crucial when you are choosing a mortgage. If you would like to have the best assistance for the right mortgage deal, you should speak with a mortgage advisor. For instance, mortgage advice in Chelmsford is readily available through mortgage specialists like Flagstone.co.uk.
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