A little while ago I wrote a post on top tips for selling your home. It’s a sad fact these days that we need to do all we can to ensure our homes sell and that we do all we can to secure the right mortgage.
Finding a new mortgage that suits you is not easy in the current economic climate so I’ve put together a few tips to hopefully help you along the way. You can always visit Newcastle Permanent Building Society for some advice and further opinions.
First Time Buyer:
Be sure that you know what this means. If you’ve ever owned a home in the UK or abroad then you won’t qualify for these type of mortgages. If you’re buying with a partner and one of you has had a mortgage before, even if the other hasn’t, you still won’t be classed as First Time Buyers.
Everyone knows now that it is imperative to save as much as you can to help your chances of getting the right mortgage. Having a larger deposit will mean that you can to secure better interest rates. In general you are going to need around 20% of the property value which can seem like a huge amount and one that many can’t afford. Even if one manages to get the required loan to maximize the down payment to get a lesser loan interest, there is always the fear of being tormented by the court-appointed bailiffs. Make sure to get trusted bailiff help in case one has been visiting you as in such cases you have certain power you might not be aware of.
More and more people are now considering this option. Find a friend that you trust, with whom you would want to share your home with and consider getting a mortgage together. Then you’d only need to fund half of the deposit and of course, half of the repayments. Problems arise when you have different expectations from the property and when one of you wants to leave the arrangement and sell their half. Do make sure you have a Tenants in Common agreement to help protect your interests and your deposit.
There are other things to watch out for if you are remortgaging –
If your current mortgage deal has come to an end it’s worth looking around for a new one and remortgaging at this stage. However do watch out for some quite hefty fees on the new loan. In recent years these have increased considerable and are tricky to avoid. It’s worth working out if the savings made are worth the cost of the fees. In some cases the size of the remaining loan can affect whether it’s worth switching to a new lender or not and it’s worth talking this through with a financial advisor.
Paying your Mortgage Off Early:
So should you consider paying off the debt and owning your home outright? Opinion is divided on this one with many saying that the low interest rates mean it’s not worth it, but then others feel that to have little or no debt is much better in this current economy. It’s well worth looking into this properly if it’s something you’re going to consider and take advice if you can. Remember some mortgages will charge you if you start to overpay or wish to pay off the whole loan early so talk to your bank and read your smallprint!
I do hope some of this is useful. I’d love to hear of some mortgage success stories, particularly if you’ve just got on the property ladder for the first time. Thanks for reading!
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