Mortgage applications can sometimes feel like a long-winded process; there is a large amount of information that needs to be collated, and it can be time-consuming gathering all of the documents needed. It is the kind of task that you might not properly understand until you have experienced it yourself. It’s not so much that it’s a complex process, it can just take time. Here are some of the pointers our applicants had wished they’d known before commencing their application.
Save As Much Deposit As Possible. While this is becoming harder to do, saving more deposit will give you access to the best deals. The average property in London now needs a 20% deposit of around £84,000 to secure it, making it difficult to get on to the property ladder. But if you can secure that 20% deposit, you will have access to the best deals around, and that can make a huge difference to the length of repayment mortgage, and remortgaging rates. Try to save as much deposit as possible as this will get you in a stronger position.
Use a Mortgage Broker. Mortgage Brokers and Financial advisors aren’t the exclusive domain or the super-rich as many believe. Mortgage Brokers are relatively inexpensive and can be worth their weight in gold when it comes to aligning your finances in preparation for a mortgage. The specialist knowledge that a Mortgage advisor has can help you take the right steps at the beginning of the process and help secure the best deals too.
Get a Help-to-Buy ISA. The help-to-buy ISA is a government-sponsored scheme to assist saving for a home, and the Government will boost your savings by 25%, so, for every £200 you save, you can receive a government bonus of £50, up to a maximum Government input of £3,000. If you’re buying a property and need some assistance in saving for the deposit, learn more about the Help to Buy ISA.
Don’t Simply Look At Deals From Your Bank. When it comes to your first home, it is exciting to get an offer accepted on a property, and very tempting to just jump in and sign up with the first mortgage deal you see. But by using a mortgage broker, like Grange Mortgages, you could be offered a much better deal, or the same deal that requires a smaller deposit from another lender. A formal mortgage offer will stand for at least three months and sometimes as long as six months, giving you plenty of time to get the legal process sorted.
Make Your Solicitor Work for You, Not Vice-Versa. You will be paying for a solicitor to help with the purchase process– who will be working on your behalf and the lenders – so make sure that you get them delivering what they need to, when they need to. Look online and establish a timeline of documentation and tell your solicitor what you expect to see. Do it early and establish a precedent, otherwise you risk being at the beck and call of your solicitor.
If you are looking for your first mortgage, want to secure a new mortgage on your existing property, or are even looking for financial advice, come and talk to us here at Grange Mortgages, and see what we can do for you.