When it comes to buying a house, there are an abundance of elements to consider and countless questions to be asked. Whether you are a first-time home buyer or simply looking to relocate, the experience should be exciting and fulfilling. To alleviate the stress of buying a property, the experienced, independent mortgage brokers at Avail Mortgages are here to guide you. We have collated decades of knowledge and expertise to provide you with our top home buying advice.
Avail Mortgages boast over 35 years of mortgage lending experience. Our friendly mortgage advisors have successfully found suitable mortgage solutions for individuals within Leeds, Harrogate and Huddersfield. With so much knowledge under our belts, we are committed to recommending a range of bespoke mortgage packages and specialist advice.
Buying the perfect home can be a long and complicated process. From looking into transport links, to finding out what the neighbors are like – there are countless factors to consider. However, by conducting the relevant research and creating a plan of action – you will have those shiny new keys in no time! We understand that it can be difficult to make a list of essential questions when buying a house, so we’ve put together this overview to help. Grab yourself a notepad, have a read through and take notes of our expert guidance as you begin your house hunting journey.
What Can I Afford?
You’ve made the decision that buying a home is the next best step for you. In doing so, you should have identified a rough idea of your budget. Be sure to ask yourself the key question – what property can I afford? You should ensure that you are correctly calculating your expected income and outgoings to determine affordability. Mortgage contracts tend to be 30 years long; therefore, long-term budgeting is essential in discovering your budget. It is crucial to consider other costs such as:
- Valuation fees
- Conveyancing fees
- Building insurance
- Renovation/maintenance bills
- Utility bills
- Stamp duty (payable on properties over the current threshold of £250,000)
Once you have worked out your combined household income and outgoings, it is important to discuss your budget with your mortgage lender. Your lender will best advise you according to your income, credit score and assets. Additionally, you can make an estimation of your potential outgoings by asking your lender about your monthly mortgage payments.
How Much Must I Save For A Down Payment?
Once most people decide to buy a new home, saving for the deposit tends to be the first step of the house buying process. Generally, putting down 5% of the overall purchase price is the minimum down payment for lower-cost properties. On the other hand, aiming for 10% furthers your chances of receiving better deals from lenders. Learning ways to save, how to save and how much to save can be challenging. Take time to sit down and factor in any outgoings or upcoming hefty payments that may hinder your saving plan. When it comes to setting a target for your total down payment, there are plenty of factors to consider:
- Average property prices in the area – if you have a location in mind, briefly research the typical price range of homes in that area. This will give you a rough estimate of what to expect from local house costs.
- Best deals from mortgage lenders – Whilst 5% deposit may suffice, saving a higher down payment results in better mortgage rates. In the long term, a higher deposit equates to a lower interest rate, making each monthly payment lower
- Your LTV (loan to value) ratio – this is the percentage of borrowing taken out against your home. The lower your LTV rate, the higher the chance of your mortgage being accepted.
By considering all of the above aspects, assessing your capacity to save for your deposit will be easier and smoother.
What Schemes Are Available To Help With My Deposit?
Understandably, saving enough down payment to secure your desired home can be time-consuming and difficult. However, saving the correct amount for your deposit need not be an issue. Here at Avail Mortgages, we embrace deposit assistance programmes and encourage our customers to take advantage of different formats of saving.
- Help to Buy equity loans – the Government introduced a loan to help buyers place down deposits as low as 5%, meaning that the rest of the cost comes from mortgage and government loans. This is a fantastic option for first-time buyers.
- Shared ownerships – often referred to as “part rent, part buy”, shared ownerships enable you to buy a share of a property and pay rent towards the rest. This is a great opportunity for those with smaller deposits that wish to climb the property ladder.
Which Type Of Mortgage Is Right For Me?
There are plenty of options for different circumstances when it comes to selecting your mortgage type. Here at Avail Mortgages, we offer a range of flexible mortgages, which can be tailored to suit your needs. Through close evaluation of your situation, our advisors can assist you in determining the right option.
WIth an interest-only mortgage, your monthly payment will essentially pay off your interest rates. This method is designed to keep monthly payments low and manageable. However, you will be required to pay off the remaining loan at the end of the mortgage term. To take out a loan of this type, you must be able to provide evidence that you are able to pay a lump sum to clear the remainder of your mortgage. You may be eligible for an interest-only loan if you already have built up equity in another property, or have a substantial income.
This is one of the most common mortgages, particularly in first-time home buyers. A repayment mortgage requires owners to repay small amounts of the capital, as well as some interest each month. This method of repayment requires consistent payments to be made, which will eventually pay off the entirety of your loan.
Buy To Let Mortgages
Should you decide to buy a property for business purposes, Buy To Let mortgages allow you to purchase a property with the intention of allowing tenants to occupy it. Whether you are an existing landlord or an aspirational landlord, this mortgage is the best option to secure your property. Your mortgage will depend on the property value, rental value and your personal financial situation.
How Can Avail Mortgages Help Me?
Avail Mortgages are committed to making the process of designating mortgages for home-buyers efficient and uncomplicated. We are an independent mortgage broker based throughout York, Bradford and Harrogate who secure buyers their dream home. We understand the complexities of house hunting and make it our mission to provide hassle-free mortgages. We offer a substantial range of mortgage choices that are designed to fit a variety of buyers. Whether you require remortgage services or a first-time buyer, Avail Mortgages are here for you.
Check Your Mortgage Eligibility By Completing A Report
You can easily check your eligibility for a mortgage by completing your mortgage report here. If you require expert advice and additional mortgage information, then our team of mortgage professionals are here to guide you in the right direction for applying for your mortgage. Our friendly team of experts work hard to relieve the stress of moving home and provide you with the knowledge you need to move home. We pride ourselves in our ability to provide mortgages as quickly as possible, processing applications in a matter of hours. If you wish to explore your mortgage options with one of the UK’s best mortgage brokers, contact us today.