Buying your first home is an exciting step. It is also probably the biggest financial step you will ever take. It is therefore important that you go into the process with full understanding – and to gain a better understanding you need to ask questions. It is particularly important to be well-informed when you are buying your first property in Bristol, where the market is fast and house prices rise quickly.
We put together a short list of questions commonly asked by first time buyers in Bristol, so you know what to expect.
1. Am I More Likely to Get a Mortgage on a New Build or Older Home?
There is not a lot of difference, but mortgage lenders in Bristol usually err towards older homes. New build homes are more difficult to sell again, and their value tends to grow more slowly. Often a lender will need a larger deposit for a new build home. In Bristol there are probably a greater number of older homes than new builds so it is more likely you will be asking for a deposit on an older home anyway.
2. Can I Be Sure I am Getting a Fair Deal?
Mortgage advisors and brokers are paid a commission when your mortgage application is accepted, but this doesn’t mean they can “sell” you any deal that is maybe not suitable or is more expensive. The typical mortgage advisor bristol provides must be accountable for their recommendations, and put forward deals and lenders based on what is most suitable and affordable. It does help to shop around a little and find out if there is anything cheaper.
3. Will I Be Able to Borrow Three Times My Salary?
Nowadays it is not all about the two-times, three-times, or the 10-times the salary. Lenders in Bristol and around the UK assess suitability for mortgages based on affordability, which is defined by a set of criteria that measure your monthly outgoings and then look at the size of mortgage you can afford after this. It really helps to keep outgoings to a minimum for your mortgage application and minimise the financial commitments you have.
4. For How Many Years Can I Take a Mortgage?
This does depend on the lender, and also on factors like your age. You can get mortgage terms that last 35 or 40 years. But lenders will typically want you to have paid off your mortgage by the time you reach the age of 70, or 75.
5. What Must My Credit Score Be For a Mortgage?
In most cases, when they are looking at a credit report from the two top agencies Equifax and Experian, lenders consider the content of the report and not the score. But it is worth remembering that the credit score is only one factor that lenders take into consideration, including your salary, your deposit size, and how well you manage your money.
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