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You might think that we are biased, but we say that when it comes to deciding when you should contact a mortgage advisor, the sooner the better. There are a number of benefits to enlisting the help of a mortgage expert early on in your house buying process.
Not least because buying a home and taking out a mortgage is one of the biggest decisions you’ll ever make, so it helps to be able to draw upon the knowledge of a qualified professional. There’s also a lot to wrap your head around, especially if you’re a first time buyer, self employed, or if you’ve got a bad credit record.
If you’re wondering whether now is the right time to contact a mortgage advisor, you are probably in the early stages of looking for a property, or thinking of remortgaging. In either case having an initial chat with an advisor is a good idea before you go any further, for the reasons which we will explore below.
Knowing exactly how much you can borrow before you start searching for properties is very useful information to have. You don’t want to end up in a situation where you have your heart set on a property, only to later find out that it is too much of a stretch for your finances. Or, you might learn that you can borrow more than you thought, in which case you can start exploring properties previously dismissed as too expensive.
Even if you already have a mortgage, there’s no guarantee that you will be able to borrow the same amount again. Whether for better or worse, your financial circumstances may have changed since you took out your first mortgage, so your borrowing amount could now be higher or lower than before. And there are also other factors to consider, such as the value of the new property.
Finding the right property starts by speaking to a mortgage advisor who can assess your financial situation and show you what you can afford to borrow.
The minimum deposit amount that you need to save will vary depending on your financial circumstances. The standard minimum deposit amount is 10%, but 5% deposits are available to first time buyers in some situations. The government has just recently announced the 95% mortgage guarantee scheme, which will encourage lenders to offer more of these deals.
However, that’s not to say that a 95% mortgage is necessarily the right option for you to take. The higher the deposit that you can put down, the less you’ll need to borrow so you’ll be able to access more competitive rates. Depending on your circumstances, a mortgage advisor may recommend waiting longer, until you can save more for a higher deposit.
There’s no one size fits all approach when it comes to putting down a deposit for a mortgage. Seeing a mortgage advisor early in your decision making process allows you to get tailored advice, so you’ll know what you need to save.
A Decision in Principle, also known as a Mortgage in Principle, is a certificate from the lender indicating how much they would be willing to lend you for your mortgage. While it isn’t a legally binding mortgage agreement, it’s very useful to come armed with this in your house hunt. It will typically be requested by the estate agent when you make an offer on a property that you’d like to buy.
A mortgage advisor will be able to help you get all of the documents prepared to apply for a Decision in Principle. It isn’t a necessity, but it helps to have the knowledge and experience of a professional during this process to make sure everything goes smoothly.
Searching for a new mortgage that suits your requirements is complicated enough. But if you already have a mortgage, you’ll need to understand what your options are with that going forwards.
Some mortgages are portable, which means you can ‘port’ your mortgage (transfer it to your new property). You’ll likely want to take this option if you currently have a good deal on your interest rate. However, there will still typically be fees involved in porting your mortgage that you’ll need to consider too. Your mortgage advisor will make you aware of all fees involved.
Or, you could repay your existing mortgage and take out a new one for the property that you are looking to buy. With the help of an advisor, you may be able to find a more favorable, cheaper deal which better suits your circumstances. In this case, there may be early repayment penalties for you to be aware of, which your mortgage advisor will be able to prepare you for.
If you’ve already asked yourself if now is the right time to see a mortgage advisor, the answer is most probably yes. Having the knowledge and expertise of a qualified professional early on in your house buying journey makes the whole process smoother, and can save you time and a lot of hassle.
By enquiring through our online contact form, Your Mortgage Options will match you with a mortgage expert for a free initial consultation. After getting to know and understand your unique circumstances, they will recommend the best route forwards. Our mortgage advisors are whole of market which means they have access to every mortgage product, even those not available from high street lenders.