Buying your first home or moving up the property ladder is a big goal for many house hunters across the North East, but it can be a daunting experience at the same time.
Wynyard-based expert in wealth management, Paul Gilsenan, is reminding people in the area that careful planning of your finances is a crucial first step before starting the process.
Paul, who is Director of PSG Wealth Management Ltd, a Partner Practice of St. James’s Place Wealth Management, works with a qualified mortgage Partner to ensure clients can navigate through the maze of options and products without feeling overwhelmed.
He has revealed his top tips for getting yourself ‘mortgage fit’ in time for your move:
Think of your deposit
Saving for a deposit is one of the main things you’ll do when looking to purchase a property. For most homes across the UK a 10% deposit is required unless you’re buying a new build and using the government-backed Help to Buy scheme where you can use just a 5% deposit.
Things worth considering when getting yourself ready for an appointment with a Mortgage Advisor are: Are all of your credit commitments up to date? Can any be repaid in full? What can you do to improve your credit score if it is low? Can you save any more than the 10% deposit so your mortgage may be less?
Monthly payments need to be right for you
Consider all outgoings when it comes to choosing your monthly payments to make sure it is affordable. Have an idea of roughly how much you could pay each month before your appointment with the advisor so you can work from there. Remember things like Council Tax and utility bills will also come out on a monthly basis so it’s important you can cover all of these costs.
Make sure you’re comfortable with the length of your mortgage
With a variety of options when it comes to the length of repaying your mortgage, make sure you choose a time frame that’s achievable for your budget. Whilst it’s good to spread the cost over a number of years, it’s worth trying to keep this as low as possible so your mortgage is paid in full quicker.
It’s also important to make sure you have enough saved to cover any additional costs- such as a solicitor fees or Stamp Duty, as sometimes people don’t take these into account when thinking about their deposit.