Getting onto the property ladder is an exciting step to take, however there are some essential questions to ask yourself before taking this step.
1) Have you saved enough?
The larger your deposit, the greater the choice of mortgages you will have. However, don’t be put off if you have a smaller deposit as there are mortgage schemes that accept as little as a 5% deposit. Our advisers have access to a full range of deals and so are able to find the best one for you.
You will also need to factor in the ‘hidden costs’ of moving house, which are outlined in this article. Each house purchase will have a unique set of costs attached to it, so your adviser will talk through these with you to ensure that you have enough capital to afford them.
2) Is it affordable?
As part of the application process, your adviser completes what we call a budget planner with you. This considers the money coming in each month and the money going out (eg: direct debit payments) so that you can calculate if a mortgage payment is going to be affordable for you. This is different to the ‘affordability calculation’ carried out by Lenders. They assess affordability differently and just because you feel you can afford it doesn’t mean a lender will, nor indeed vice versa.
Before your appointment with your adviser, take a quick look at your finances to see what’s going in and out each month and if there are any anomalies it will give you a chance to address them.
3) Is now the time to apply for a mortgage?
Seeking an appointment with a mortgage adviser isn’t something that has to be done only when you’re in a position to buy and doesn’t commit you to anything. If you’re unsure how to even begin the process of getting onto the property ladder, or even if you can, having a chat with one of our advisers can help you create a plan towards home ownership.
They can look through your situation and finances with you to see if a mortgage is likely to be available right now, or if there may need for you to wait a while before proceeding - this can sometimes (but not always) be the case if, for example, you have outstanding adverse credit issues.
White Mortgages Ltd prides itself on putting you, the client, first so will only offer a mortgage product if it’s the right thing for you.
If you’d like to discuss your first steps onto the property ladder, request a call back with one of our advisers today.