First Time Buyer
First Time Buyers |
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When choosing a mortgage you will have more choice if you have a bigger deposit. For now, the days are gone when 100% mortgages were available and looks like they may never return. So, the starting point is a 5% deposit but even then there are few deals around and those that are available are very expensive compared to mortgages with a 20%/30%/40% deposit (they get cheaper the more deposit you have)
If you have experienced any form of adverse credit in the last 6 years then this is going to be an uphill struggle. First time buyers usually have little credit history for the lenders to base their decisions on, so should they come across any missed payments for any form of credit (mobile phone bills, utility bills, loans) then you will probably be declined.
Now would be a good time to get a copy of your credit report , Experian is good place to go. Send us a copy and we can interpret the results to determine your chance of getting a mortgage.
When it comes to choosing a mortgage pick up the phone and speak to us. First Time Buyers have the most difficulty finding a mortgage so you could easily be refused as a result of not fitting the lending criteria. Every time you apply for a mortgage or any other form of credit a record of this is recorded against your credit file (by Experian and Equifax) and this information is shared with lenders. Too many applications for credit will affect your credit score and reduce the likelihood of obtaining credit.
When a lender and deal have been sourced it is time to apply for a decision in principle. This is an agreement by the lender to give you a mortgage on the basis that you can support your application with evidence of earnings. A credit search will be carried. This decision is obtained almost immediately.
Once you know you can get a mortgage then you are in a good position. You will not be dependant on selling a home, so it is less likely that the property chain will fail - this is important to sellers. You should be able to bargain for a discount. House builders are very keen to negotiate.
From this point on you are in the same position as a home mover, so take a look at what affects them - go to home mover section