Are you thinking about buying a house? If you’re looking to invest in bricks and mortar, it’s likely that you’ll need a mortgage. A mortgage is a long-term loan, which covers the cost of a new home. Are you thinking of taking the plunge and getting onto the property ladder? Here’s everything you need to know about getting a mortgage.
How to get a mortgage
Mortgages are offered by a whole host of banks, building societies and independent providers. Even if you’re au fait with financial systems, getting a mortgage can be stressful. Where do you even start, and how much could you borrow?
Before you even start looking at properties, it’s always wise to work out a budget. To do this, you’ll need to get some mortgage quotes. Your offer will usually be dependent on your income and the value of your deposit. Gather the relevant information together and arrange to see a financial adviser. You will need to provide evidence of your income and additional information about your finances. Book some appointments with different lenders and compare offers. There are various types of mortgage, and you should consider all your options.
It’s always advisable to have a written mortgage offer in place before looking at houses and submitting offers.
Mortgages and bad credit ratings
If you have a poor credit rating, lenders may not be keen to offer you a mortgage. Your credit rating may be low if you’ve missed rent, mortgage, or loan payments in the past. You may also be rejected if your income is low or you have CCJs. If you have a bad credit rating, this doesn’t necessarily mean you can’t buy a property. There are specialist lenders out there. It’s worth doing some research and getting advice from the professionals. Check out pages like www.1stukmortgages.co.uk/bad-credit-remortgages/ccjs-and-remortgaging-with-poor-credit/ for more information. If your credit rating is too low, there are ways to improve it. Keeping up with repayments, using your account frequently and paying off loans will help.
If you take out a mortgage, the loan is generally provided against the value of your home. This means that if you miss payments, or you fall behind, you may be at risk of losing your home. When you’re budgeting, always factor in mortgage payments. Before you apply for a mortgage, set a realistic target. There’s no point in overstretching yourself and making every month a struggle for years to come. If you are having trouble keeping up with payments, seek advice. The sooner you find a solution, the better. If you miss payments, this will affect your ability to take out loans and mortgages in the future. For more information, take a look at http://www.moneysavingexpert.com/mortgages/mortgage-guide.
If you’re thinking about applying for a mortgage, there’s a lot to consider. Take stock of your finances and work out a suitable budget. Think about what kind of repayment you can afford and organise some appointments with mortgage advisers. Make sure you are comfortable with the terms of the offer before you accept it. If you have questions, don’t hesitate to ask.