Tip 1:
Let’s talk mortgage terms for first time buyers… If you choose a longer mortgage term, the lower your monthly repayment will be, as it will take longer to pay off, however, you’ll end up paying more interest to the lender over a longer period.
If you choose a shorter mortgage term, the higher the monthly repayments will be, but you will clear your mortgage quicker and pay less interest to the lender.
When choosing how long you want your mortgage to be, think carefully of your monthly budget, because you’ll be committed to pay this, every single month!
Tip 2:
BE PREPARED – To make sure the home buying process is as stress free as possible; it makes sense to get everything you need to hand prior to applying for the mortgage. Have documents such as 3 months payslips, bank statements, p60s proof of deposit ID etc to hand!
Tip 3:
Make saving automatic! Currently there’s an app for everything. There are loads of ways to automate your saving. For example, Acorns is one of those popular apps that rounds up purchases and puts the money directly into your savings.
If you want to keep it even more simple then that, why not automate what amount of money gets put into your saving account every month? This way you don’t account for this money when you’re spending.
Tip 4:
Don’t forget about the other fees involved in buying a home! It is not only the cost of the actual home you are looking to purchase that you need to consider when figuring out mortgage affordability. Other things that you should consider include:
- Valuation costs
- Estate agent fees
- Legal fees
- Surveyors’ costs
- Moving costs
- Home improvement costs
- Maintenance and repairs
- Ground rent
- Insurance
- Utility bills
- and Council tax!
Tip 5:
Once you’ve moved into your first home – remember to change the locks, change your alarm code, do your meter readings and I think the most important step… Change your address via the government website, DVLA and with your bank!
If you’re interested in having a chat about buying your first home, then give us a call on 01925 573328 or visit warringtonmortgagecentre.co.uk/contact
Download our first time buyer guide for FREE – warringtonmortgagecentre.co.uk/first-time-buyers-mortgages
*YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE.
