If you’re a first time buyer, we understand that looking for your first mortgage can be a little daunting so we’ve put together a little guide about what to expect when looking to get on the property ladder for the first time.
Firstly, the amount that you can borrow will depend on;
– the amount of deposit that you have – the size of your deposit matters. It affects how much you can borrow and what interest rate you can borrow at.
– your disposable income – a lender will need to know that you can comfortably afford the costs associated with getting a mortgage and owning your own home. They will also want to see that should interest rates change for example, you’s still be able to afford the repayments.
– your credit score – to get the best mortgage deal doesn’t just need a good deposit, you now need a good credit score too. You can keep an eye on your credit score by registering with the likes of Experian and Equifax. Use their tips to improve your credit score and increase your chances of getting accepted for a mortgage.
So, when you apply, what paperwork will you need?
As a guide, you will need;
– last 3 months of payslips or 2/3 years accounts if your self-employed – this will be proof of income for the provider.
– the proof of your deposit
– your last 3 months bank statements
– your latest P60 to prove your income and the amount of tax paid for the last financial year
– proof of any employment bonuses or commissions
– if you are self-employed you will need your SA302 tax return forms
Paperwork requirements can vary from lender to lender so the information above should be used only as a guide.
It is also important to bear in mind that the lender will also need to ensure that the property you are looking to mortgage is suitable. They are well within their rights to turn down your application if they don’t feel the property chosen provides adequate security for them to lend on.
You need a property in place with an offer accepted before a formal mortgage application can be submitted.
At Simply, we have access to the whole of the mortgage market and offer independent advice, as opposed to banks, building societies, tied agents or company representatives who may only advise and offer products from the company they represent.
If you need any further information on mortgages feel free to get in touch using the form below and we will get back to you asap.
There will be a fee for mortgage advice. The precise amount will depend upon you circumstances but we estimate it will be £295.00
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE