Buying Your First Home? 5 Things to Know Before You Sort Your Mortgage
Buying your first home is a big step. It can feel exciting, but also a bit confusing at times. With the right advice, the process can become much clearer and less stressful.
There’s a lot to think about, from paperwork to planning your budget. But understanding a few key things early on can help you feel more prepared and confident.
Here are five things worth knowing before you get started:
1. You don’t need a huge deposit
Some lenders will accept a deposit as low as 5%, especially if you are a first-time buyer. However, saving a bit more (if you can) may give you access to a wider range of mortgage products. Even a small increase in your deposit could lead to more competitive rates.
2. Lenders look at more than just your income
Your salary is only one part of the picture. Lenders also consider regular spending, outstanding debts, credit history, and childcare costs. Reviewing your finances ahead of time can help improve your chances of approval. For example, it may be useful to reduce unused credit or avoid taking out new loans in the months before applying.
3. The lowest rate might not be the best fit
Some mortgages with low interest rates also come with high fees or long tie-in periods. What works best for you will depend on your circumstances and future plans. It’s important to look at the full cost of the deal, rather than focusing only on the interest rate.
4. Ask questions if anything feels unclear
Buying a home can feel complicated, especially if it’s your first time. A good adviser will explain the process in plain terms, so you understand what’s happening at each stage. There’s no such thing as a silly question when it comes to a decision this important.
5. Consider how to protect your new home and finances
Once you’ve arranged your mortgage, it’s worth thinking about how to protect it. Cover such as life insurance, income protection, or critical illness cover can provide support if something unexpected happens. This kind of protection may help you keep up with payments during difficult times.
Final Thought
Buying your first home should feel exciting, not overwhelming. With clear advice and a bit of planning, you can move through the process more confidently. If you’d like guidance that’s tailored to you, I’m here to help.
