We all want to make that big step and buy our own home, but knowing where to start can be the hard bit.
Willow Brook Mortgages pride ourselves in making things as simple as possible from the start.
So, where do I start?
The first step is speaking to one of our mortgage advisors. We will ask about your income, outgoings and from there explain your maximum borrowing amount from lenders.
Now we know how much you can borrow, let’s add in your deposit. This can come from savings or a gift and you can buy a home with as little as a 5% deposit!
The amount of deposit you have will impact the mortgage interest rate; the bigger the deposit the better the rate.
The next step will be deciding on things like fixed rates, arrangement fees, valuation types and Solicitors. We can talk you through all of the options that you have and answer any questions.
What do I need ready for my chat with my mortgage advisor?
- Last 3 months payslips or for self employed last 3 years tax returns if available.
- Information on outgoings such as loan payments and credit card balances.
- Credit report if you are worried about your credit file.
What is my LTV?
Loan-to-value (LTV), is simply your mortgage loan compared to the value of your house expressed as a percentage. For example, if you compare a £100,000 loan to a £200,000 value property, your loan to value would be 50%. If your LTV is higher it will be represented in the interest rate your lender offers you. If you have a high Loan to value, you own less of your house and so will be a higher risk to the lender if you were to have the property repossessed.
What fees are involved in my mortgage?
When looking at the market your product may have one of the following fees:
- Valuation fee (this can be free or around £200)
- Arrangement fee (normally £999)
- Booking fee (normally £100)
Fees involved are estimates and may vary between lenders
There are a few other costs to think about before you get in your dream home and after the move:
- Solicitors will be needed as part of the transaction. They will carry out searches and raise enquires on your behalf when buying the property.
- Council Tax is payable depending on the geographical location and the value and number of bedrooms in your property. This cost can be paid monthly.
- Electricity and Gas is an obvious one to consider but will differ for each property, for example, you may have an energy efficient new build or a 1950’s steel frame construction property. Either way it is always good to check on websites like ZOOPLA and speak to estate agents for approximate costs.
- Water bills may be on a tariff or on a meter so always check. If you live in Scotland this will be included in your Council Tax.
- TV licence/ internet – optional costs but popular creature comforts these days.