Buying Your First Home? 5 Things to Know Before You Sort Your Mortgage
Buying your first home is a big deal, and while it’s exciting, it can also feel a bit overwhelming. Between all the paperwork, the financial jargon, and the pressure to “get it right,” it’s easy to feel out of your depth.
But it doesn’t have to be stressful. With a bit of guidance (and a friendly expert in your corner), you can move through the mortgage process with a lot more confidence, and maybe even enjoy it a bit along the way.
Here are five things worth knowing before you dive in:
1. You don’t need a huge deposit — but the more you have, the better the deal
You might have heard you need a 20% deposit to buy a home. Truth is, there are mortgages out there for as little as 5% down – especially for first-time buyers. That said, the more you can save, the better the rates usually are. Even just nudging your deposit up by a few thousand pounds could make a real difference to your monthly payments.
2. Lenders look at more than just your income
It’s not only about what you earn. Lenders will also review your spending habits, existing debts, childcare costs, and even subscription services. You don’t need a perfect record, but showing you can afford the loan comfortably makes a real difference. A bit of planning ahead (such as clearing old credit or trimming unnecessary costs) can really help.
3. The lowest rate isn’t always the best deal
Some mortgage deals come with high fees or tie you in for longer than suits your plans. Choosing the right deal depends on your situation, such as whether you might move again soon. Flexibility can sometimes be more valuable than saving a few pounds each month.
4. Ask as many questions as you like
There’s no such thing as a daft question when you’re buying a home. This is one of the biggest financial steps you’ll take, so it’s important to feel clear and confident. A good adviser will explain everything at your pace and make sure nothing gets missed.
5. It’s about more than just getting the keys
Arranging your mortgage is one part of the picture. Protecting what you’ve worked hard for is just as important. Cover such as life insurance or income protection can offer reassurance if something unexpected happens.
First-Time Buyers: 5 Mortgage Must-Knows for First-Timers
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.
Is It Time to Remortgage? Here’s What to Think About
Mortgage rates have been on a lot of people’s minds lately, especially with so many fixed-rate deals due to expire. If yours is coming to an end, it might be a good time to consider whether remortgaging could help you stay on track. The right move depends on your current deal, your goals, and what’s happening in the market.
Here are five things to keep in mind before making a decision.
1. Check when your current deal ends
Many lenders let you line up a new deal up to six months in advance. If you wait too long, you might end up on your lender’s standard variable rate, which is usually more expensive. Getting ahead means you’re less likely to feel rushed.
2. Look at the full cost, not just the rate
Some mortgages offer low interest but come with large fees. Others might be slightly higher each month but have no extra charges. It’s worth looking at the total cost over the full term, not just the monthly payment.
3. Your home’s value could work in your favour
If your home has gone up in value since you bought it, or you’ve paid off a decent amount of the mortgage, you may now have access to better deals. Lenders often reserve the most competitive rates for customers with more equity. A quick valuation can help give you a clearer picture.
4. Think about what you want from your next deal
Remortgaging isn’t just about saving money. You might want to shorten your term, increase flexibility, or borrow extra for home improvements. Talking through your plans can help you find a deal that fits your situation.
5. Keep an eye on the interest rate outlook
The Bank of England has held its base rate steady in recent months, but there’s talk of reductions later in the year. It’s impossible to predict with certainty, but if stability matters more to you than chasing the lowest possible rate, a new fixed deal could offer some peace of mind.
Final Thought
Remortgaging can be a smart step, but the best time and the right product depend on your bigger picture. If you’re unsure whether now’s the right moment, or what your options really look like, I’m always happy to help talk things through.
Could You Still Pay the Bills If You Were Off Work?
Most people don’t plan for time off work, but it can happen. Illness and injury can affect anyone, and the financial impact often arrives quickly. Income protection insurance is one way to help keep your finances steady when your health takes a hit.
1. What income protection actually does
Income protection pays a monthly amount if you’re too unwell to work. It usually covers a percentage of your income (often between 50% and 65%) until you’re well enough to return or the policy ends. A waiting period applies first, which might range from four weeks to several months.
2. Why it’s worth thinking about
Many people assume their employer would cover them if they were off sick, but sick pay often runs out quickly. If you’re self-employed or have irregular income, the risk can be even greater. Without something in place, a stretch of missed work could put real pressure on your household finances.
3. What the policy typically covers
It applies to physical and mental health conditions that prevent you from doing your job. This could include long-term illness, injury, or ongoing treatment. Income protection does not cover redundancy or voluntary career changes.
4. How much cover might be right for you
You can usually insure enough to cover essential costs like your mortgage, rent, food, and bills. The more cover you choose, the higher the monthly premium. Some people prefer to keep it lean to manage the cost while still offering peace of mind.
5. Things to consider before choosing a policy
Each policy has a “deferred period,” which is how long you wait before it starts paying out. Some cover your exact job, while others pay only if you can’t do any work at all. It’s also worth deciding how long you’d want payments to continue, such as two years or until retirement age.
Final Thought
If time off work would leave a serious gap in your finances, income protection might be worth exploring. It won’t suit everyone, but for many families, it can offer reassurance and breathing room when life is interrupted. If you’d like help thinking it through, I’m happy to guide you.
Getting a Mortgage When You’re Self‑Employed
Applying for a mortgage while self-employed can feel more complex, but it is possible with the right preparation and evidence. Lenders tend to seek more documentation from self-employed borrowers, yet many specialist options exist. A careful approach and good guidance can help you secure the mortgage you need.
Here are five key considerations for self-employed mortgage applicants:
1. Know what lenders expect
Most lenders want two to three years of certified accounts or SA302 tax documents, though some may consider applicants with just one year of accounts plus a large deposit. These documents help lenders verify that your earnings are sustainable and can support repayments. Gathering these early makes the process smoother.
2. Show consistent income and credit
Lenders look for steady income patterns and clear finances. Avoid drawing heavily from business reserves or applying for new credit before you apply. Keeping your personal and business finances separate also helps present a clear picture.
3. Build a strong case with your broker
A specialist mortgage broker can highlight your full financial story to a lender. Broader paperwork—like evidence of ongoing contracts or business plans—can work in your favour. They know which lenders understand self-employed profiles and can match you accordingly.
4. Prepare for potentially stricter criteria
Self-employed applicants are more likely to be rejected without the right documents. Expect lenders to use lower income estimates (the lower of two-year averages, for example). Smaller deposits or newer businesses may push you toward specialist lenders and slightly higher rates.
5. Check your loan-to-value and affordability
Like all borrowers, self-employed applicants must meet affordability checks under FCA rules. More competitive rates are often offered to those with lower loan-to-value ratios, ideally under 80 to 90 percent. Be ready to cover any valuation, legal or broker fees in your budget.
Final Thought
If you’re self-employed, the mortgage process involves more preparation but it is reachable. By organising your paperwork, maintaining clear financial records, and getting expert advice, you can greatly increase your chances of success. If you’d like help navigating the path or finding the right lender, I’m here to help—step by step.