A Detailed Guide To Mess-Free Mortgage For First Time Borrowers

Everything has its price but money too takes a price to come in your reach. The mortgages do exactly the same, they provide money but on the price or cost of your property. When something big is on stake, every step should be cautious and desperation to get best mortgages becomes the priority. The desire intensifies when you are a first time mortgage borrower.

Market may have the abundance of choices, but the most important loan option is the one that suits to your individual circumstances. A lot of search and mind-boggling conversation goes between you and the lenders, but which deal deserves to become your choice becomes the biggest confusion. Oh! What a mess? Do not worry, with organised and calculative steps, you surely can reach to the destination.

A Crisp Guide for First Time Borrowers

Being a new comer in this field, it is natural to encounter sundry anxieties and doubts. Take a deep breath and don’t worry. It is not a rocket science, just stay precise and focused and things get done step by step.

The Preconditions

The very first list of doubts being a first time borrower usually revolves around ‘how to start’ question. Following are the steps for a systematic application.

1.       Keep a deposit amount. A part of the whole payments goes in advance as loan is given only on a certain percentage of your income. So keep money ready.

2.       Search for the schemes that are for first time buyers. This may bring you some discounted loan offers.

3.       Scrutinize yourself to know if you can afford the mortgage or not?

4.       Find a property. Make COMPARISON, your tool to do this task.

What Lenders See In You?

Just as you see many things in a lender, the rule of vice-versa brings you also on the dissection table. To be exact, your FINANCIAL SITUATION.

Ø  Your monthly income

Ø  Your affordability against mortgage repayments

Ø  Existing debts

Ø  Income and outgoing ratio

Ø  The value of the property

Aspects That Affect the Decision of Lenders

Credit score status - It is important for the lender to see how well you are in your financial behavior.

The deposit amount - More deposit amount you have lesser is the need of the loan amount. Ideally, it is advisable to arrange at least 10% amount (of property value) as the deposit.

Your age - It is not possible to get a mortgage if you are 70. People near retirement get mortgages of only short-term. Those in 30’s , 40’s obviously have better chances.

The tenure of mortgage - The short-term mortgages means big installments and the lender needs to see if you can afford the repayments or not.

You are the only applicant or there is a joint applicant - For a single applicant, the loan amount is limited while for the joint applicant, there are better chances of getting desired amount.

Some Quick Tips to Afford a Mortgage

For first time borrowers, repayments are always a concern and the cause of anxiety. Worry not, some tips can help you manage the installments.

ü  Cheaper mortgage deal - Work on the roots and the tree is sure to grow healthy. A low cost mortgage is never a burden and you can pay it off with no imbalance in finances.

ü  Get a cheaper property - It is not bad to dream big but best is to live within your means. Go for a less expensive property deal, the one that you can handle well.

ü  Longer mortgage tenure is the best - This is the perfect tool to have a small installment every month. This means, no breaking boundaries of monthly budget.

ü  Control unnecessary expenses - Discipline yourself and cut the useless expenses. Do not live a monk like life but also do not become a spendthrift.

ü  Arrange more deposit - More deposit means less mortgage amount means lighter obligation. Invest all your savings and also work on every possible alternative to add more money.

In UK, the mortgage loans are available with many promising possibilities but with ‘conditions apply’ tag. Bridge the gap between the two and the best deal is destined to come.