First Time buyers
First things first, we may as well cover the basics. What is a mortgage? Well, when you buy your home you’ll probably need to take out a loan to pay for it. A mortgage is a loan to enable you to purchase a property. The key difference from other loans is that this one is secured against your property, and is usually offered at a lower interest rate than other loans. This means if you are unable to keep up the repayments, your mortgage provider can sell your home to recover to money you owe.
Your mortgage must be affordable
If you’re getting a new mortgage to buy a home, increasing your current mortgage, or re-mortgaging, your lender must check that you can afford your repayments now and in the future.
The amount the lender will give you will be based on what you can afford, so they will need information about your income and outgoings. This will include essential outgoings such as food, electricity and council tax as well as living costs such as car insurance, childcare, clothing and household costs. Other commitments include credit card bills, holidays and hire purchase payments. They will also work out how a rise in interest rates might affect your monthly mortgage payments.
You will have to tell them if you expect your income or outgoings to change in a way that means you’ll have less to spend on your mortgage payments.
And remember, because your home loan is secured against your property, if you don’t keep up your monthly mortgage payments, your lender can repossess and sell your home to recover any money you owe.
Getting the right advice, will mean that you not only end up with a suitable mortgage, but also help you in finding that perfect property for you.
No two mortgage services will be the same. The details you will be asked for are likely to vary from lender to lender and may be different from mortgage experiences you have had previously.
You can get advice about mortgages directly from an advisor at a mortgage lender (like a building society or bank), or from a mortgage broker or financial advisor. Keep in mind that a lender’s advisor is only permitted to advise you about that lenders’ particular products. They will discuss your personal circumstances, including your income and what you spend. Using this information, they will look at what kind of mortgage is suitable for you. They may need to research the mortgage market before they recommend a deal that they think is right for you.
An advisor must make clear to you what their charges are and how they are paid. They must also disclose if there are any limits to the range of mortgages they can recommend for you.
Getting a mortgage without advice
In some limited circumstances, you can apply for a mortgage without taking advice. This is usually done by post or online. However, you would need to know all the details of the mortgage you wanted, and be able to arrange it yourself without speaking to an advisor.
If you choose to do this, your lender or advisor must tell you about the legal protection you will lose by not getting advice. This includes the right to complain about how suitable the mortgage is for you.
Andrews can help
We’re here to help you find the best mortgage deal to suit your needs. Whether you are moving, buying your first home, re-mortgaging or considering a buy-to-let investment property, our award-winning, independent, expert mortgage advice will guide you through the mortgage maze.
With 30 years’ mortgage experience we know how important it is to find the right mortgage for you. We’ll do this when and where it suits you − in person. Or over the phone.
You don’t need to buy or sell through Andrews to use us, and we’re happy to spend as much time with you as you need to make the right decision.
Our mortgage advisors are based in our branches and on the phone so that we can offer you a complete service under one roof. We’re happy to work outside normal office hours too, so you can let us know what suits you and we’ll do our best to help.