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Details of your outgoings include debts, household and utility bills and other living costs such as clothing, child care and travel costs.
XL Financial Services will guide you through all of this and help collate all of the information for the lender. As part of our work with you we do a full breakdown of your circumstances and make sure that the mortgage we recommend is suitable for you.
Budget for the other costs of buying a home
As well as your deposit, you also need to think about any additional costs which might be involved in buying your first home, such as:
- mortgage arrangement and valuation fees
- Stamp Duty
- solicitor’s fees
- broker fees
- survey cost
- removal costs
- initial furnishing and decorating costs
- insurance for both your home and yourselves
When we discuss mortgages with you we can help you understand all of these fees and give some examples of costs for you to help you plan more effectively.
via our contact us page and we will call you back to discuss this.
The application process
Lenders must now check that you can afford the mortgage and also 'stress test' your ability to make your payments if interest rates were to rise or your circumstances changed.
When deciding how much to lend you, lenders will take your income and all your outgoings into account. To prove your income, you may have to produce payslips and bank statements and the self-employed could be asked for tax returns and business accounts prepared by an accountant.
When looking for your first home it is easy to get caught up in looking at property and seeing what type of property you like.
However, for a lot of first time buyers it can be quite daunting.
There is a never ending source of information available on the internet, sometimes providing contradictory information.
You can ask your parents for help but it may have been many years since they took a mortgage and it is a lot different now to even last year as rules change all the time.
Therefore we have highlighted below some of the key things to consider when looking at buying a home for the first time.
Finding a mortgage
There are many different mortgage deals to pick from, so choosing the right one for you can be tricky.
Which option is best for you depends on, for example, whether you want the security of a fixed monthly repayment or are happy to opt for a variable rate, which may be cheaper initially but will get more expensive if interest rates rise.
You can do some of the research yourself at the start but it’s a good idea to talk to a broker like us sooner rather than later, as we can help guide you through the maze of products and advise you on the best deal for you.
We can also look at some of the specialist schemes available for you such as Help to Buy as well.
Make sure you can afford your monthly repayments
As a first-time buyer, the most important thing to bear in mind when buying your first home is whether you can really afford it.
You don’t want to live in poverty or never see your friends because you’ve over extended yourself and can’t afford to spend any money except on your mortgage and your bills. So it’s vital you put together an accurate budget showing all your costs so you know how much you can realistically afford.
After its review of the mortgage market known as the Mortgage Market Review (MMR), the financial regulator (Financial Conduct Authority or FCA) has introduced new rules to increase consumer protection and ensure that lenders act responsibly. This means that there are stricter checks on income and expenditure when you apply for a mortgage.
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