- Financial wellbeing
- 2 minute read
Since September 2022, the mortgage market has seen its fair share of volatility and change; and whether you’re a first time buyer or an experienced re-mortgager, every advantage helps.
So, download our flyer here for some tips from our own mortgage advice team to help you get ahead of the pack on the long and winding road to your first or next mortgage. Here are some simple steps to focus on for the very first stage of looking for your next mortgage and are recommended before you even start looking for your next home.
1. Check what you can afford
Use budgeting tools and mortgage calculators to see what mortgage repayments are in your affordable range. And ‘stress test’ affordability at higher rates, as lenders will also be doing that
2. Factor in all costs
Buying a house isn’t only about the deposit or the mortgage repayments. When reviewing your affordability calculations, check both your one-off costs such as house price, stamp duty, moving costs, solicitors/conveyancer costs and so on. But also revisit your normal monthly budget to see what the regular monthly running costs of your new home will be such as rates, utilities and building and contents insurance - especially as the cost of some of these have changed significantly in the last 12 months
3. Keep a check on your credit check
The first step in the mortgage application process is the credit search and some lenders base the majority of their lending decision on this search. Sometimes your credit check may be referencing incorrect or out of date information. So check it yourself to make sure the information is valid and up to date to give you some time to sort out any inconsistencies, and to boost your creditworthiness before even applying for a mortgage
4. Choose the type of mortgage
Understanding the different types of mortgage and selecting the type that’s right for you is vital before you start searching for a mortgage that works for you
5. Choose your provider(s) carefully
Always use a reputable provider i.e. a bank, building society or specialist mortgage broker. Remember that offering a mortgage is a commercial business for providers, so what’s on offer changes from time to time and especially over the last 10 months with changing mortgages rates and market volatility
6. Check your employee benefits
To see if your employer offers a mortgage advice service. These services can often cost you little, but they are likely to search the market or a panel of providers to find you the right mortgage with a reputable provider
7. Apply for a mortgage in principle
This is not a guarantee to lend, but provides you some peace of mind that from a credit perspective and according to that mortgage provider’s criteria, you are likely to be eligible to get a mortgage with them. And it reassures you, estate agents and sellers that you are a serious buyer
This only looks at one part one of the mortgage process – the very start, even before you find your next home. Read our more detailed flyer for full information and tips:
Remember that your home may be repossessed if you do not keep up with repayments on your mortgage, or other loan secured on it.