7 steps to getting a mortgage

In the event you’re trying to purchase your first dwelling, likelihood is discovering out methods to get a mortgage is fairly excessive in your to-do listing. 

As a mortgage is a giant monetary dedication, it’s necessary to fastidiously think about your choices, to be sure you select the fitting product for you.  

We’ve damaged down the method that can assist you to get one step nearer to a mortgage supply, and naturally, your brand-new entrance door.  

Step 1: Examine your credit score rating

There are various issues mortgage lenders will take note of when deciding whether or not, and the way a lot, to lend to you. Your credit score rating is necessary because it’s typically the primary issues lenders will have a look at to present a sign of how effectively you’ve dealt with cash previously.  

You possibly can learn extra about how lenders will use your credit score rating whenever you’re making use of for a mortgage, in addition to methods you’ll be able to verify, and enhance, your present rating. 

Step 2: Think about the kinds of mortgages accessible

In relation to mortgages, there’s nobody measurement matches all, so it’s necessary to think about your choices.  

Mounted-rate mortgages will assure you a set price of curiosity for a set interval, whereas tracker and Customary Variable Fee mortgages are normally linked to the Financial institution of England’s Base Fee, so can change over time. You possibly can learn extra in regards to the several types of mortgages accessible right here, together with a few of their professionals and cons.  

It’s price noting that round 95% of all new mortgage loans taken out in 2022 have been on a set price. 

Step 3: Think about your mortgage time period

In addition to the kind of mortgage you’re taking out, you’ll additionally need to think about the mortgage time period. This refers back to the variety of years it’ll take to repay the mortgage. An extended mortgage time period will imply decrease month-to-month repayments, however it’ll additionally imply you’ll pay curiosity over an extended interval, too.  

Most lenders will supply longer phrases to assist unfold the price of a mortgage over 30 to 40 years, or extra, relying in your age.  

If you apply for a mortgage, you’ll be able to select the time period you suppose you’ll be able to most comfortably afford. 

You possibly can learn extra about reimbursement phrases right here.  

Step 4: Work out how a lot you’ll be able to afford

It could sound apparent, but it surely’s necessary to take the time to think about your whole outgoings, alongside the extent of month-to-month reimbursement you could be snug placing in the direction of your mortgage.  

You possibly can calculate your estimated month-to-month mortgage repayments utilizing our affordability calculator. 

Step 5: Work out how a lot you might borrow

A mortgage calculator generally is a useful gizmo to present you an concept of how a lot you might borrow, primarily based on the dimensions of your deposit, and your earnings. However that’s not the one factor a lender takes under consideration when contemplating how a lot they’re ready to mortgage to you.  

Learn extra about lenders’ affordability assessments, in addition to how they work out how a lot they may mortgage to you. 

Step 6: Apply for a Mortgage in Precept

Whether or not you’re shopping for by yourself or with one other particular person, you’ll be able to apply for a Mortgage in Precept. It’s price noting that this isn’t a full mortgage supply, however it may be actually useful whenever you’re trying to purchase a house, because it’s an excellent indicator of how a lot a lender is ready to mortgage to you. 

After you’ve accomplished the utility, you’ll be given a personalised outcome displaying how a lot you might borrow with a mortgage. Preserve all the related paperwork helpful, as you’ll be capable of use it whenever you’re able to make a full mortgage utility.  

And keep in mind – you’re not committing to something by making use of, and your credit standing received’t be affected. You possibly can learn extra about the distinction between a tough and delicate credit score verify right here. 

Step 7: Get in contact with a mortgage dealer or adviser

Although you’re capable of apply for a mortgage straight with a lender your self, you would possibly discover it useful to make use of a mortgage dealer or adviser whenever you’re making use of for a mortgage. 

Mortgage brokers are certified to present unbiased recommendation, so can be effectively positioned to let you know which is the very best deal on your circumstances. They will have a look at a spread of mortgage merchandise for you, and assist information you thru the total mortgage utility course of. 

READ MORE: What are the present UK mortgage charges?

The header picture for this text was supplied courtesy of Daniel Brewer Property Brokers, Essex. 

Please observe: Rightmove is just not authorised to present monetary recommendation; the data and opinions supplied in these articles will not be meant to be monetary recommendation and shouldn’t be relied upon when making monetary selections. Please search recommendation from a specialist mortgage supplier.