Thinking about buying a new home can raise a lot of questions before you even get to the point of making an offer.
We’ve pulled together five of the questions we’re asked most, with straightforward answers to help you get a clearer idea of what to expect for first time buyers and home movers alike.
1. How Much Can I Borrow?
The amount you could borrow will depend largely on your provable, consistent income, which can include things like regular overtime or bonuses as well as your basic salary.
Your wider financial picture matters too, and this is where an advisor can help work out what all of that means for your actual borrowing potential.
Our mortgage calculator can give you a useful starting point based on your income, then an advisor can help you build a clearer picture from there.
2. When Should I Get an Agreement in Principle?
It’s worth getting an Agreement in Principle once you’re ready to start seriously looking at properties, ideally before you begin making offers.
An AIP is an indication from a lender of how much they may be prepared to lend you, based on some initial information about your circumstances.
This can help you understand the price range you could realistically be looking at.
We can typically provide an AIP within 24 hours of your initial appointment, so it can be a useful early step without holding up your property search.
3. What Documents Do I Need?
You’ll usually need proof of your identity, address and income, along with recent bank statements to support your mortgage application.
The exact documents will depend on how you earn your income, with self-employed applicants likely to need things such as accounts or tax calculations alongside the usual paperwork.
An advisor can tell you what will be needed from the start, so you can get everything together before you’re ready to apply.
4. Can I Take My Current Mortgage With Me?
If you already own a home and are thinking about moving, you may be able to take your existing mortgage deal with you to the new property.
This is known as porting.
You’ll still need to make a new application, and if you need to borrow more for the new home, that additional amount may be arranged on a different deal.
Even if you’re buying your first home now, it’s useful to know that your options don’t necessarily stop once the mortgage is in place.
If your plans change a few years down the line, porting could be one of the options worth exploring.
5. What Mortgage Rate Could I Get?
Mortgage rates have moved throughout the yeah and what’s available can change, so the rate you see today may be different from the one you saw a few months ago.
The rate available to you will also depend on things like how much you’re borrowing and the deposit you have available.
A 5% deposit is a common starting point, while some first time buyers may have access to mortgages with deposits as low as 2%, depending on their circumstances and the mortgage they’re eligible for.
If you already own a home, the equity you have can play a similar role.
Speaking to an advisor can give you a much better idea of the rates and deals available to you right now, rather than trying to work it out from the market as a whole.
Did You Know? You Can Move Home With Equity Release
If you’re aged 55 or over, a lifetime mortgage could help you buy a higher-value property without needing to add further cash yourself.
Monthly payments are optional, so you can choose to make them if you want to reduce the amount of interest that builds up over time.
It won’t be right for everyone, though it can create another route to moving home in later life.
We can explain how it works, the costs involved and whether it could be suitable for your plans.
Still Have Questions?
If buying a new home is on your mind, now is a good time to get your questions answered and find out what your options could look like.
Our mortgage advisors can talk through your plans, explain what applies to your circumstances and help you make a start on your next move.
