First-time buyer mortgage advice - what you need to know
Everybody knows that taking that first step onto the property ladder can be tricky, and it’s essential you look for the right advice so that you can do so in the most secure way possible. You have likely spent years working hard to fund that first deposit, so you want to make sure you are getting the most for your money!
In this blog, the Campion Homes team offers their first-time buyer mortgage advice for those preparing to make that first step towards homeownership – keep reading to find out more.
Seek out qualified advice
First things first, you will want to find yourself a reliable mortgage advisor. They are specialists with an in-depth knowledge of the property market who can offer you detailed advice and guidance prior to making your home purchase.
It’s worth asking around friends and family for recommendations of trusted advisers. Their advice is typically free - Campion Homes work with an independent local advisor so they can help with a referral to their agent.
Speaking with an advisor means that you know exactly what kind of terms your mortgage will come with and avoids any uncertainty around what you can and cannot afford. However, what is even more important is that these advisors have access to almost every product on the market. So, just like you want the best deal on your new home, you definitely want the best deal on your mortgage as this could save you lots of money.
Financing a mortgage
Probably the most vital thing to consider is how much of a monthly payment you can realistically afford. The worst-case scenario would be to underestimate your outgoings, leaving you with a mortgage you cannot afford.
Take into account all of your monthly expenditure – including things like monthly bills, phone contracts, recreational spending, food and household supplies, childcare, fuel, holidays and seasonal spending (e.g. Christmas, birthdays).
There are strict checks when you apply for a mortgage to ensure you can afford the repayments, including in the case of any circumstance changes, like starting a family.
Typically, the more you can save before applying for a mortgage the better – it means you borrow less from the bank and often have access to more competitive rates. Mortgage calculators like this one from MoneySavingExpert are a good way to accurately assess what your repayments will look like.
The application process
When you are ready to apply, you will need to prepare evidence of your income, plus information on all your debts, current household bills and any other monthly outgoings. If asked to prove your income, you can use payslips and bank statements.
They can also carry out a credit check with a credit reference agency once you've made your application, to take a look at your financial history and assess how much of a risk lending to you might be.
Generally, once you have applied it can take 2-6 weeks for your mortgage to get approved – if all goes smoothly, you’ll then receive a formal mortgage offer!
Campion Homes is there to help you every step of the way when buying your new build home. To get the latest news and updates from Campion Homes, subscribe to our newsletter here.