Buying your first home has been out of reach for many people over the last 5-7 years. Now the dream has become a possibility if not quite a reality for many people, especially over the last 12-18 months.
Easier but not less complicated.
There is a considerable amount of information gathering at the beginning of the mortgage approval process. However, we have found that by helping you gather it all together at the start of proceedings, and to understand why it is needed, actually makes the whole experience smoother and somewhat less stressful.
5 Major Factors you need to consider and know before applying for a mortgage.
1: Do you have a deposit? Proof of deposit is required in every case. You will need at least 5% for a “Help to Buy” (New build only) & “Help to Buy 2” (HTB2).
The Help to Buy brochure is on www.homeshub.co.uk or call 08456034559.
For further information you can view a video at www.rightmove.co.uk/help-to-buy.html
A large number of lenders will allow a gifted deposit from a close relative, subject to the lender’s conditions & assuming all money laundering regulations are met. You can also have a combination of a gift and savings for the deposit. Some builders may even give a 5% discount. In some cases this can also be used (lender specific).
Based on the size of the deposit, all Lenders have various products & criteria standards (e.g. how strongly/tough they credit score etc.). We as buyers, focus on the deposit size as a percentage of the house value. They as lenders, use a “Loan To Value” percentage of the loan, compared to the value of the house, shortened in lender speak to LTV%
The bigger the deposit, the lower the LTV%, the better the rate and the easier it becomes to pass a lender’s criteria/score.
In order to assess which lenders best suit your type of deposit and before making a recommendation on which path to take, we ask that you provide evidence of the deposit and its source. We then can have much more confidence of getting the right outcome for you from the very beginning.
Other documents relevant to your own circumstances can also be requested & submitted to support the application.
So as you can see, there is quite a considerably bit of information gathering and various aspects to considers before you even decide on what product you are going to need let alone what lender to apply to and all before you even start the mortgage approval process.
Rest assured that you are in safe hands with an experienced, reliable firm who have your best interest at the very heart of everything we do. We will hold your hand through the whole process and make the experience almost bearable.
If you would like the burden halved and be allowed to focus on the exciting elements of buying a home then get in touch with me to have a chat and see what can be achieved.
Daniel Hulme CeMAP
07743 357 419
This information is given as a guide. Lenders affordability calculations require proof of income and criteria can vary. All aspects of an individual’s circumstances will be considered before making a recommendation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We normally charge a fee for mortgage advice, however this will be dependent on your circumstances. Our typical fee is £350 payable upon receipt of offer of mortgage.
J&M Green Mortgage Services Ltd is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority