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Your home may be repossessed if you do not keep up repayments on your mortgage.
If you’re a first time buyer, the mortgage process can be overwhelming and confusing. There are often many myths surrounding buying a property for the first time.
Buying a home involves more than getting just a mortgage, it’s about having a place of your own when you can relax and shut the world out.
Here are some of the most common myths:
My salary isn’t big enough
There are many different types of mortgages available, and so it’s not a case of ‘one size fits all’. As well as standard mortgages, there are also specialist mortgages available that you may not be aware of that are suitable for those with complicated circumstances, and an independent mortgage broker has access to these.
My deposit isn’t large enough
One of the biggest worries when it comes to getting a mortgage is having a deposit that’s large enough. We all know that the more you can pay up front the better, as it will keep your monthly outgoings down and secure you a much better rate. However, not everyone will have a large sum saved, especially if you’ve been paying rent, but it’s good to remember that some mortgages only require 5% deposit.
I need a good credit rating
Many people bury their head in the sand when it comes to credit ratings, but there’s nothing to worry about it. You won’t need a perfect score, and there are many factors that will affect your overall score. The key things are to ensure you’re on the electoral register, you don’t miss any credit card or loan payments, you don’t max out your credit cards without repaying them and you don’t apply for too much credit.
I can’t afford the fees
Many mortgages let you spread the cost of the fees as part of your borrowing, and when you talk to a mortgage advisor they will go through all of the fees that you’ll have to pay including legal fees, stamp duty and mortgage arrangement fees. You won’t have to pay more than you can afford.
I don’t know what house to buy
That’s where a good estate agent comes in! They will be able to advise you on the house prices, the local market, what you can realistically get for your money and guide you as to the process of buying a property.
If you would like advice on buying a property for the first time, contact Derngate Wealth today.