Considerations and Costs when Applying for a Mortgage

Buying a home is one of the biggest investments you will ever make. As a result, you must be realistic about what you can afford over the long term.

The things that matter to a mortgage company include the following:

  • How much money you have put by for a deposit and where it has come from. The best type of deposit comes from your savings, but some mortgage lenders will also allow family members to help you out.
  • Most lenders will look for a deposit of at least 10%. A few may offer mortgages with a 5% deposit, but it is important to remember that the more money you have as a deposit, the better the lending rate will be.
  • How much you earn and how stable your job is will also matter. Typically, you must provide at least three months of salary slips to show your earnings.
  • Different rules apply for the self-employed, and you will be advised of what lenders need by your financial advisor.
  • Your age is important, as the average mortgage lasts 25 years. If you are over 50, fewer lenders will accommodate your request, but it is not impossible, and a good financial advisor can search for the best opportunities for you.
  • Finally, although a good credit rating is best, it is not impossible to find mortgages for those who have had problems in the past.

Understanding Mortgage Costs and Finding the Right Financial Advisor for You

All the above are general guidelines, and the rules and criteria differ across the many lenders in the mortgage market. Suppose you are likely to fall into a category where getting a mortgage might be more challenging. In that case, a financial advisor who can search the entire market might be a better option than one limited to the products sold by an individual bank or company.

There are additional costs to think about as well, which can include:

  • Your Solicitor’s Fees
  • Land Registry Fees
  • Moving Costs
  • Any Fees Associated with Your Mortgage Application, Such as Those to The Mortgage Advisor
  • Survey Costs
  • Buildings and Contents Insurance

Mortgage Application and Survey Requirements

When you apply for a mortgage, you will need to give the lender a great deal of information:

  • Your Full Name – Including Any Middle Names
  • Proof Of ID, Showing You Are Who You Say You Are
  • Three Years of Address History If You Have Moved Around a Lot, For Instance, Renting
  • Your Salary Slips or Business Accounts

Property Survey and Report

Once the mortgage application has been made, the lender will arrange for a surveyor to go and view the property. The type of survey will depend on what you have paid for and what the lender requires. You will pay for the survey when you make the mortgage application. You will be given a copy of the survey report simultaneously with the mortgage lender.

Give Us a Call

If you are ready to buy your home with our experienced team, check out our packages and decide which is right for you. If you are still determining which is the perfect one for you, then call us on 01305 778500, and we can discuss your needs in more detail.