Bennison Brown | 6 Things You Should Do To Make Sure You Get The Best…

6 Things You Should Do To Make Sure You Get The Best Mortgage Deal

Ensure your mortgage deal is the best you can get

A mortgage is often the biggest financial commitment someone will take on in their lifetime, so getting the best mortgage deal available can save you a considerable amount of money.

Whether you’re a first-time buyer, homeowner or landlord the below tips will help you understand how to make the most out of your personal situation, so you can get the best mortgage deal available to you.

1. Save… Save… Save…

The absolute minimum deposit to obtain a mortgage is 5% (of the property value), and some lenders require a minimum of 10%. For buy to let properties, the minimum deposit varies between 20-40% (usually 25%). To purchase a £180,000 property, you would need a minimum of £9,000, and ideally at least £18,000.

The higher the percentage the deposit is, the lower the mortgage rates you will have access to- you can see this for yourself using our mortgage finder.

2. Be aware of extra costs

Buying a house incurs a lot of extra costs that you should be aware of:

Required:

  • Stamp duty
  • Solicitor/conveyancer fees
  • Land registry
  • Mortgage broker fees
  • Lender valuation fees (some lenders may cover this themselves)
  • Buildings and contents insurance (for freehold properties)
  • Removal firm
  • Ongoing maintenance fees (for buy to let properties)

Optional:

  • Lender arrangement fees
  • Survey fees

You should know which of these apply to you, and how much money you’ll need to cover them.

A mortgage adviser will have extensive knowledge of how these fees vary, and will be able to tell you roughly how much you should expect to pay

3. Know your schemes

If you're a first-time buyer, a Lifetime ISA (LISA) lets you save up to £4,000 every year towards your first home, with the government providing an extra 25% on top.

    Shared ownership mortgages allow you to partially buy and partially rent your property. It helps low income households who have less than £80,000 or £90,000 in London.

    4. Understand your credit score

    Lenders will examine your credit score when you apply for a mortgage. They need to know that you can handle debt responsibly before they can start to feel comfortable lending you a large amount of money.

    It is wise to check your credit score ahead of applying to avoid any unwelcome surprises. If it is poor, you can take steps to improve your credit score.

    5. Have your documents at the ready

    Your mortgage broker, lender and solicitor will ask you to provide documents. Making sure you have the correct, up to date documents is essential.

    • ID – Make sure the expiry date and details are all up to date
    • Address - If you have recently changed your name or address, make sure it is amended on all your personal documents.
    • Income - If your payslips are hard copies, make sure you keep them safe as you will be asked to verify your income. If you are self-employed make sure you have your tax calculations and tax overviews for the last 3 years.
    • Bank statements - Lenders will look out for large transactions. One thing to keep in mind when sending your friends money – make sure the reference isn’t something comical as this will be seen!
    • Tenancy agreements (for buy to lets) - Make sure your tenancy agreements are up to date and signed by all tenants. If your rent has changed over the years, make sure that your tenancy agreement reflects this and that rental payments are clearly shown on your bank statements.

    If you are slow to provide documents, mortgage rates can expire and you could be sacrificing a good mortgage deal.

    6. Speak to a whole of market mortgage adviser

    Even if you don't plan on using one to apply for a mortgage, a mortgage adviser has a wealth of knowledge and experience, and can provide you with valuable advice going forwards.

    Whole of market brokers have access to every mortgage available on the market, rather than just a small panel of lenders. They also take into account all costs involved and aim to get the most cost-effective deal for you overall.

    If you wish to speak to one of the expert mortgage advisers at Bennison Brown, you can submit an enquiry below.

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    Leave your details or phone us now on 02074276067