First time buyer
Using a mortgage adviser may be really helpful, especially for first-time buyers, when it comes to obtaining the right mortgage for your financial circumstances and comprehending why your application could be denied.
An adviser can assist in streamlining the procedure. When you don't know much about the process, buying your first house could seem intimidating, but it doesn't have to be.
Types of mortgages available
It's crucial to weigh your alternatives when getting a mortgage in order to select the one that best fits your requirements and financial situation. Interest rates, the duration of the mortgage term, and any related fees or charges are all important factors to take into account.
With a fixed-rate mortgage, the interest rate is fixed for a predetermined amount of time, usually between two and ten years. Upon completion of the set period, you will transition to the SVR.
Standard variable rate (SVR)
When the fixed or tracker rate period is over, borrowers transition to this default rate set by lenders.
A tracker mortgage swings up or down in line with the base rate set by the Bank of England.
An interest-only mortgage requires you to pay just the interest on the amount borrowed throughout the life of the loan. As a result, it's critical that you have a strategy in place for repaying the full principal amount at the conclusion of your term.
An offset mortgage reduces the amount of interest paid on the mortgage by connecting a borrower's mortgage account to their savings account.
What to bring with you to your mortgage appointment
You should bring any information regarding the kind of property you intend to purchase, as well as documentation of your identification, income, and residence history. While your lender may ask you many questions, be ready with some of your own to make sure you comprehend the procedure completely.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £599.