What You Need To Think About Before Applying For Your First Mortgage

• Are your finances under control?
• How much can you afford for a deposit?
• Have you been working regularly and can you prove your income?
• Have you checked your own credit rating lately?
• Are you self-employed?
• Be ready to answer searching questions and have to prove your position to a mortgage broker or a bank.

We can help you analyse  your situation and prepare a financial plan that helps demonstrate to a lender what you’ve achieved and how dedicated you are to the cause. It is better to be organised well in advance before approaching a lender and making enquiries about loans.

The Cost Of Buying

It’s not just about making the mortgage repayments, there are a whole host of upfront costs to do with purchasing. Not least of which is likely to be stamp duty, mortgage application fees, legal fees and inspections.

Then there is the deposit and the need to finance the stamp duty upfront.

And finally when you thought it was all over you need to have mortgage insurance.

How Big Is Your Deposit

The size of your deposit determines in the first instance your ability to obtain a loan and secondly the size of your payments and the interest rate you will pay.

You Will Need To Know Your Cash Flow

You’re going to need an idea of how much you can afford to spend on your mortgage. This is a big commitment to undertake and requires dedication and diligence.

Majority Of Loan Repayments Are A Combination Of Principal And Interest

Meaning that every payment you make you are paying a little off the loan and a lot of the interest. These will be spaced out over the term of the loan normally 25 years. Some specialist investment loans can be interest only, meaning at the end of the loan you still have to repay the principle.

Interest Rates

Depending on your credit rating and the type of loan, your interest rate can range considerably. It is even possible to have a split loan including both fixed percentage and variable. Rising interest rates can affect your ability to repay a mortgage.