top of page

Getting Mortgage Ready: A Guide for First-Time Buyers

Writer's picture: Adam HarisAdam Haris

Many aspiring homeowners are facing new challenges in securing their first mortgage. The journey to homeownership can seem daunting, but with the right preparation, it’s achievable.



Understanding Affordability

Your borrowing capacity hinges on your income, expenditures, and the size of your deposit. When you apply for a mortgage, lenders will conduct a thorough assessment of your financial situation to determine what you can comfortably repay.


Utilise the services provided by your adviser to determine which lender will suit your needs. Additionally, a variety of platforms offer useful calculating tools to gauge what you might qualify for.


Building a Deposit

Saving for a deposit is often the most significant hurdle for first-time buyers. While a 5% deposit can open doors to specific mortgage deals, aiming for 10% or more can unlock more competitive rates. Financial help from family can bolster your deposit amount and improve your mortgage prospects.


Exploring Mortgage Options

There’s a range of mortgage products available depending on your deposit size. While 95% loanto-value (LTV) mortgages exist, opting for a 90% LTV or lower can lead to more favourable interest rates. Contact your mortgage broker for support and advice when searching for the deal that suits you.


Managing Your Credit Profile

Before applying for a mortgage, review your credit record with agencies. Ensure your information is accurate and up to date. Address any discrepancies and consider adding a notice of correction to explain special circumstances affecting your credit history. Avoid unnecessary credit applications leading up to your mortgage application, as these can impact your credit score.


Financial Discipline

Leading up to your mortgage application, maintain disciplined financial habits. Avoid new loans or buy now, pay later schemes that could negatively affect your credit profile. Lenders inspect bank statements to assess your spending patterns, so it’s wise to prioritise essential expenses and cut back on spending.



Despite the challenges posed by a competitive property market, there are viable options and resources available to support you on this exciting journey towards homeownership.


For more information, contact one of our adviser's who can support you and discuss the options available to you.

2 views0 comments

Comments


Commenting has been turned off.

0800 368 9824

  • Facebook

TLA Finance Ltd is registered in England and Wales no. 04759274. Registered office, 166 College Road, Harrow, Middlesex, HA1 1BH.

 

Authorised and regulated by the Financial Conduct Authority. TLA Finance Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference FCA: 304214.

We are a credit broker, not a lender. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

 

If you wish to register a complaint, please write to info@tlafinance.com or telephone 0800 368 9824.

 

A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.

 

Copyright © 2024 TLA Finance Ltd. All Rights Reserved. Cookie Policy | Privacy Notice

bottom of page