How To Get A Foot Up On To The Property Ladder
With credit harder to come by, especially at high loan to values such as 90% and 95% it is imperative that as a first time buyer seeking a mortgage you get your ducks in a row before making a mortgage application. Here are 6 mortgage tips for first time buyers that will go some way to ensuring the decision you receive is a firm YES!
- Get your credit report in order: Get your credit report free from www.creditexpert.co.uk who do a free 30 day trial or www.noddle.co.uk If you are able to, get yourself on the UK electoral roll. Make sure all Credit Cards are below their limits and that you are within your overdrafts ideally for the proceeding 3 months before applying for a mortgage.
- Get your mortgage agreed in principle! It takes 30 minutes for a mortgage broker to get a mortgage agreed in principle and involves one credit check which won’t affect your credit rating. As a first time buyer you are in a great position as you can move quickly to complete a property purchase as you are not involved in a chain, use this to try and get yourself a discount on a property when making an offer.
- Make sure you can afford the repayments, use our mortgage repayment calculator. Also check your set up costs such as solicitors and stamp duty, use our stamp duty calculator or ask us for our house buying budget planner!
- Deposit – Ensure you have the minimum 5% required but if you can put down more you should know that for every 5% of deposit you can put in (even if gifted from family) it will bring down the rate and make it more likely you will pass credit scoring.
- Income – Be prepared! Employment income is evidenced by 3 months’ payslips, you will need to provide them. Contractors need to have current and past contracts available and self-employed clients will need to have at least 1 years accounts (if a Ltd Company) or if a sole trader or partnership, at least 1 years SA302 and tax overview form, this is now a standard requirement.
- Finally, work with good people. Fox Davidson work tirelessly to ensure the process is as smooth as possible but we also link up with trusted professionals such as solicitors, surveyors and mortgage protection advisors to ensure our clients are well looked after.
Read more about the first time buyer mortgages we secure to get you onto the property ladder by clicking here.