Getting ready to buy your first house can be daunting. Credit scores, deposit, and mortgages are all on your mind. Here are the 3 steps:
Step 1: Determine how much house you can afford
The first thing to do before buying a home is to make sure it’s the right time to do so. Generally speaking, owning a home pays off financially if you live in it for at least five years. Otherwise, there’s nothing wrong with renting.
How do you determine how much you can afford to buy up to:
Identify the amount of funds you have for your deposit?
Speak to a mortgage broker to confirm how much you could borrow based on your circumstances and income.
The addition of your deposit and the amount to can borrow will be your purchase price.
You'll need funds to cover legal costs, valuation and stamp duty. Speak to us to help you prepare.
Step 2: Prepare your finances for the mortgage process
The last thing you want to do is find your dream home only to discover you’re not financially qualified to buy it. To guarantee you’re financially ready to buy your first home, you’ll need good credit, cash to close, and a
verifiable income to support your mortgage.
You need to convince lenders that you've got the financial discipline required to pay back your mortgage. One way they investigate this is by searching your credit records to find out if you have a good repayment history.
Your credit file lists your past credit cards, loans, overdrafts, mortgages and even mobile phone and some utility payments, for all accounts that were open over the past six years.
How to get a free credit check
Credit rating agencies top end service is 'credit monitoring', which costs up to £14.99 a month. To tempt you in they offer free month-long trials, which require you to set up a direct debit or regular credit card payment.
Access yours from a provider that pulls together a report from three of the major reference agencies Equifax, Experian and TransUnion all in one report – Access your report for 30 days FREE.
Step 3: Go shopping for a property
What shall I do next?
Get in touch so we can help you:
Establish your credit rating. We'll also help improve your ratings if required!
Access the entire UK mortgage market so you can find you the best possible deal
Do everything possible to help secure the mortgage
See how we can help you buy your first home
The choice of interest rate and product terms will depend on your circumstances and the amount of the mortgage. Before you make a mortgage application, we will carry out a full review to establish your needs and preferences and if you meet the criteria, we will give advice and make a recommendation to you. There may be a fee for mortgage advice. All mortgages are subject to status. Please note that all products show an indicative rate only and may not be suitable for you. You must be 18 or over.
Your home may be repossessed if you do not keep up with mortgage payments.