If you’re considering buying a house with a mortgage, there are some important things to keep in mind. Our handy guide takes you through mortgage affordability, deposits and credit scores to help you navigate the process.
1. Your mortgage affordability
Before you start house-hunting, consider how much you can afford. Decide on your ideal property type and location to help you budget for your deposit.
Use our Mortgage Affordability Calculator to understand your affordability.
2. The size of your deposit
The next step in the homebuying process is saving for a deposit. The larger your deposit, the better the mortgage deals and interest rates. Larger deposits can:
• Help you secure a lower interest rate and monthly repayments
• Help you cover the other costs of buying a house, including Stamp Duty, survey and legal fees
• Help you kickstart your home renovation
3. Your credit score
You must consider your credit score before applying for a mortgage. Most lenders will accept your mortgage application if you have a good credit score (a description and prediction of your financial behaviour). It’s a good idea to register on the electoral roll and get a credit card to improve your rating.
A credit score includes information about:
• Credit cards
• Overdrafts
• Debts
• Loans
• Mortgages
• Some utilities
• Buy now, pay later transactions
4. The mortgage type
Finding the right mortgage deal for your unique circumstances can be daunting. There are several deals to choose from, including fixed- and variable-rate options and discount and joint mortgages.
Our guide to the different mortgage types covers the pros and cons of each to help you make an informed decision.
5. Other costs
Buying a home is an exciting milestone, but it also comes with extra costs, including:
• Conveyancing or solicitor
• Estate agent
• Insurance
• Valuation
• Survey
• Stamp Duty
• Removal
Explore our homebuying guide to learn more.
Ready to buy your home? Browse our brand-new 2 bedroom homes to 5 bedroom homes across the UK. Whether you’re relocating with a growing family or for work, we have a home for you. We also have unique offers to help you start your journey to homeownership, including Parent Power, Part Exchange and Deposit Boost.
Call or visit our Sales Advisers today for more information.
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