What is the Best Type of Mortgage for a First-time Buyer?

There is no single answer to this question as the right mortgage product depends on your individual circumstances. If you’re looking to buy your first home in Woking, Bath, or Bristol, we can help you assess your current situation and decide on the best first-time buyer mortgage for you.

For example, you can buy your first home via one of the government Help to Buy schemes even if you have only managed to save enough for a 5% deposit. In some cases, you might be able to borrow 100% of the property’s value.

If, on the other hand, you have a sizeable deposit, you may be able to take advantage of lower interest rates.

In some very rare cases, you may even be able to take out a first-time buyer interest-only mortgage.

There are many variables when it comes to deciding which is the best mortgage for a first-time buyer and the best advice is to speak to a mortgage broker who can look at all options and make sure to get the best deal available to you.

Contact My Mortgage Maker today and take your first step at getting on the property ladder.

What Affects Whether You Get Accepted for a Mortgage?

Mortgage lenders look at a number of factors when deciding whether to approve your mortgage application. These include:

·         Income – most lenders times your salary by 4.5 to work out the maximum you can borrow, although in certain circumstances this can be higher

·     Affordability – they will also check your monthly income and expenditure to confirm you can afford the repayments, this is known as mortgage affordability

·       Deposit amount – the larger your deposit, the more chance you have of being approved

·        Loan to value – this is the amount you borrow expressed as a percentage of the property’s value

·         Credit history – arrears, defaults, and missed payments on existing or previous credit agreements may not stop you from getting a mortgage but might mean you have to pay higher rates

The best way to make sure you get the best rate possible for your circumstances is to speak to a mortgage broker.

If you’re looking for a mortgage in Bristol, come to My Mortgage Maker for expert advice from a qualified mortgage broker with years of industry experience. 

What Is a Buy to Let Mortgage?

A Buy to let mortgage is a home loan for a property you purchase to rent out. It is sometimes known as a landlord mortgage, and you can get full details about the products available by speaking to an advisor. You can get a Buy to Let mortgage to rent out as accommodation, for commercial purposes, or as a holiday home.

For a Buy to Let mortgage, you generally need a larger deposit than you would for a residential mortgage (usually around 30% minimum). If you don’t have that level of savings, some lenders will consider taking a charge against another property you own in lieu of a cash deposit.

Mortgage terms are typically on an interest-only basis to keep the monthly repayments cheaper. This means you only pay the capital back when the loan term ends or you sell the property.

You can take out a Buy to Let mortgage as an individual or limited company. It is strongly advised that you speak to a mortgage broker before taking out a Buy to Let mortgage so you are clear about your responsibilities and terms of the deal, and to make sure you get the best possible rate.

At My Mortgage Maker, we help buyers find the best deals on mortgages in Bath, Bristol, and the surrounding areas.

Top 3 Questions to Ask When Applying for a Mortgage

Taking out a mortgage is probably the biggest financial decision you will ever make. So, it’s important you get it right. At My Mortgage Maker, we want to help you understand some of the fundamentals of home loans.

So, we’ve put together a list of some of the most important questions you should ask to make sure you get the best deal and the best terms on your mortgage.

     How much can I borrow?

In most cases, you can borrow 4.5x your annual salary so a simple calculation will give you an idea of how much you can borrow. However, if you are borrowing at a low loan to value (LTV), you may be able to increase that amount as the risk to the lender is lower.

     How much deposit do I need?

This varies and it is perfectly normal for first-time buyers to borrow 100% of the amount needed to buy their home. If you are able to get together a deposit to put down, though, you are more likely to be offered a more favorable interest rate. The best rates are generally reserved for borrowers who have a deposit of more than 40%.

       What’s the difference between fixed-rate and variable rate?

A fixed-rate means you know the rate of interest you will pay for a set number of years – usually 2-5 years. This is the most common type of mortgage as it provides stability and makes budgeting easier.

A variable-rate changes according to the Bank of England base rate. You will pay less when rates are low, but repayments can get high if rates rise.

To make sure you get the best deal, speak to a mortgage broker. Our advisors will discuss your circumstances and advise on the best lender for you.

For mortgage advice in Woking, Bristol or Bath, get in touch today to be matched with a mortgage broker.

Do I Need to Use a Mortgage Broker?

While there is no legal obligation for you to use a mortgage broker, it makes sense to do so. With so many different types of mortgages and thousands of home loan products available in the UK, trying to find the best deal for your circumstances without expert knowledge is a huge risk.

For most of us, a mortgage is the biggest financial commitment we will ever make, and getting it wrong can end up costing you £000s over the term of your loan. At My Mortgage Maker in Bath, we have expert mortgage advisors with comprehensive knowledge and expertise in the UK mortgage market. There are also exclusive deals available through mortgage brokers that you won’t find anywhere else.

Our mortgage advisor service stretches as far as Woking and Bristol, and we will help you find the best mortgage deal with a service tailored to your needs. Whether you are looking to buy your first home or seeking remortgage advice, get in touch today for a no-obligation chat. With just a few simple details about your current circumstances, it will only take a few minutes for us to let you know whether we can find your best mortgage deal.

What is the Property Market Forecast for 2022?

October 2021 saw the end of stamp duty holiday rates and an expected downturn in the number of properties for sale. However, the last two months of the year are traditionally quiet for property purchases, and the current forecast is that there will be plenty of property market action in 2022.

First time buyers are predicted to have access to better rates and rising inflation may encourage some people to sell. Recent years have seen significant changes to life in the UK and hybrid working models are seeing some people seek new homes that match their new lifestyle while others are looking for mortgages to help pay for home  improvements.

So, is getting a new mortgage in 2022 for you? My Mortgage Maker is a brokerage covering Bristol, Woking and the surrounding areas. We’ll determine your mortgage affordability and provide the figures that allow you to work out whether now is the time to buy, sell or remortgage.

As a mortgage broker, we’re not tied into one lender and we’ll find the best one according to your circumstances.

Whether you’re looking for a:

·         Mortgage broker Woking

·         Mortgage broker Bristol

·         Mortgage broker Bath

Now is the time to do your research and make your financial plans for 2022.

Work out the true cost of buying

So, you have your deposit saved and you’re ready to buy your first home? Well, it’s not as simple as getting a mortgage, picking up the keys and moving in. Before you go any further, work out the true cost of buying to make sure you’re fully prepared.

Fees: There are a number of fees in arranging a mortgage – from arrangement fees, valuation fees, legal fees and, of course, stamp duty and surveys. It can appear a little daunting at first, so your best bet is to seek the advice of a mortgage broker who can help you understand the various costs associated with buying a home.

Of course, there are other moving fees to consider too such as a removal van, any installation costs and whatever furniture and appliances you will need as you move onto the next chapter in your life.

Don’t let that put you off. Buying your first home is exciting and gets you on the property ladder. But it’s wise to consider all the costs beforehand to ensure you can afford your new life. And one of the most important factors is getting the best mortgage deal.

Don’t leave things to chance. Contact a mortgage advisor who can help calculate your mortgage affordability and find the best deal for your circumstances.

My Mortgage Maker offers advice and support for clients in Woking, Bristol and Bath. Get in touch today.