1. Finding a property you can afford
Before you start house-hunting, it is a good idea to work out the amount you can afford to spend on buying a property and on your monthly mortgage payments. There are many mortgage affordability calculators online which can give you an estimate of how much you can borrow based on your income and outgoings.
Think about Costs
Consider how you will cope if your financial situation changes, or interest rates rises, and be careful not to overstretch yourself. Your savings will have to cover not just the deposit but expenses such as mortgage fees (anything up to £2000) and Stamp Duty on properties costing more than £125,000.
Before you fall for your dream home, make sure you understand the cost of buying property.
Choosing the right mortgage
It’s never too early for you to start thinking about arranging a mortgage as this can be time-consuming. You can get a mortgage from an Independent Adviser (IFA), mortgage broker or lender. VA has a panel of IFA’s who we can recommend for great advice and a whole of market deals. Ask a member of the VA Team.
Once you’ve found a mortgage, agree a mortgage “in principle” (MIP). This tells you how much money the lender is likely to offer and the interest rate you will pay.
You may have to pay a booking fee to reserve the mortgage product you want. Typical cost: £99-£300.
Check your credit report
Before you apply for a mortgage check your credit report for any errors and to get an idea of your score as lenders will look at it when making their decision on your application.