For most people, buying a house is the single biggest purchase they make in their lives. Few people have the resources to buy a house for cash, and therefore use a mortgage! A mortgage is a loan secured against the property, which is paid off over a long period (typically 25 years).
The mortgage process can seem a bit intimidating and long winded, especially for those purchasing their 1st property. We are here to help you through each step of the buying process, and to help you get a most appropriate mortgage for you, to help you secure your home. Here we will talk you through some of the steps and the processes you would have to follow!
How much can you afford?
This is the first step to buying a home – working out how much you can spend on buying your new house. The mortgage company will need details of all your income and all you outgoings – such as council tax/utility bills/credit cards etc. They will use this to determine how much income you have available each month to pay the mortgage. We can give you a good idea of how much you can borrow with just a few basic details. The size of your deposit will also determine how much you can borrow.
What documents will I need to Provide?
You will need to show 2 forms of ID – passport and a recent utility bill should do. Most providers will want to see 3 months bank statements and 3 months’ pay-slips as evidence of your earnings. If you are paid a bonus or commission, they may want to see more details and a P60.
I’m self-employed – can I get a mortgage?
Yes you can, although it’s not always as simple! Most providers will want to see 2 years of accounts ( there are some that only want a year), and your SA302’s if you self asses. For company Directors, they will need to see full audited accounts and evidence of Salary and Dividends received, as well as bank statements etc.
Once you have provided all the requested documents/evidence, the mortgage company will give you a decision and an offer of mortgage. This normally lasts for 180 days, giving you time to complete on the property you intend to buy.
Who can we help?
- We are able to help 1st Time Buyers – including Help To Buy
- Home Movers – trading up the property ladder
- Remortgage – when your mortgage deal finishes, you will be put back on the Standard Variable Rate (SVR) – this is normally very expensive, and can cost you £1000’s over the term of the mortgage.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Buy to let (pure) and commercial mortgages are not regulated by the FCA. Think carefully before securing other debts against your home.