Author
The below blog has information contained within was correct at the time of publication but is subject to change.
As a first-time buyer, navigating the mortgage landscape can feel overwhelming, but your mortgage adviser is there to guide you through the process. Here are the key topics to discuss during your consultation.
Understand your borrowing capacity
Begin by clarifying how much you can realistically borrow based on your income and financial situation. Your adviser will consider your salary, any debts, and your credit score to provide a realistic figure. It's worth discussing what your monthly repayments would look like at different price points.
Explore mortgage types
Ask your adviser which type of mortgage would best suit your circumstances, whether that's a fixed rate, variable, tracker or other type of mortgage. Fixed-rate mortgages provide payment stability but might have higher initial rates, while variable rates can offer lower initial payments but with future uncertainty.
Deposit requirements
One of the biggest hurdles for first-time buyers is saving for a deposit. Discuss the minimum deposit required for your desired property range and explore what difference a larger deposit would make to your options and rates. This can help you decide whether to buy sooner or save longer for a more favourable deal.
Additional costs
Ask your adviser about additional costs to budget for, including arrangement fees, valuation fees, legal costs, and stamp duty. For first-time buyers, understanding the Stamp Duty Land Tax relief available can save you thousands of pounds.
Mortgage features and flexibility
Speak to your adviser about mortgage features that might benefit you in the future, such as the ability to make overpayments or take payment holidays, and what the early repayment charges would be. These features can provide valuable flexibility if your financial situation changes unexpectedly, such as receiving a bonus at work or needing to temporarily reduce payments.
Government schemes
Enquire about your eligibility for government schemes such as Help to Buy, Shared Ownership, or the Mortgage Guarantee Scheme. Your adviser can explain how these schemes work and whether they'd be beneficial in your particular situation, potentially making homeownership more accessible.
Preparation for your application
To strengthen your mortgage application, discuss what you can do to improve your chances of mortgage approval and whether there are any issues in your financial history to address. This might include improving your credit score, reducing existing debts, or ensuring you're on the electoral register.
Final considerations
Before concluding your consultation, ensure you know what documentation you'll need for your mortgage application. Having this information early allows you to gather the necessary paperwork, making the application process smoother.
Meeting with a mortgage adviser is your opportunity to gain clarity and confidence. By addressing these important topics, you'll not only secure a mortgage that fits your needs but also develop a clearer understanding of the home-buying process.
