Buying your first house can be a daunting experience with so many things to consider, like mortgages, interest rates and deposits.
In this hot list, sponsored by The Mortgage Brain, SoGlos has outlined 6 of the most helpful tips for those looking to buy their first home, to help make the process go smoothly.
Get a copy of your credit file
A credit file, also known as a credit report or history, is a record of your credit history from a number of sources, including banks, credit card companies, collection agencies, mobile phone providers and governments.
You can get a copy of your credit file for free from a number of websites – but check through to make sure the entries and your current address are all up to date. It’s easy to request amendments if they need to be made, but can take up to 30 days, so it’s best to get this done sooner rather than later.
Get on the electoral roll
Your credit score can drastically improve by making sure you are on the electoral roll at your current address, which could in turn save you interest on your mortgage.
You can find out whether you are signed up to the electoral roll via the UK government’s website.
Understand your budget
Just because a lender will offer you a mortgage amount, doesn’t mean it will be right for you. Break down the monthly payments to make sure you can afford them and still enjoy the lifestyle you’re used to.
It’s worth speaking to a mortgage adviser who can help you understand your budget too, as they’ll look at all the lenders and find the right provider for you, based on your personal circumstances.
Save as much as you can
The bigger the deposit, the cheaper your mortgage interest rate will be – and you’ll have more options available.
So get your accounts in order, pay off debts wherever possible, stay out of your overdraft and save everything you can.
Get your paperwork in order
Lenders will need to see proof of your income, so make sure you have your payslips and P60 ready – or your most up to date accounts if you’re self-employed.
Bank statements are also needed so make sure you pay all the bills on time and don’t spend more each month than your salary can cover.
Consider all your options
Whether it’s a government scheme such as a Help to Buy; part buy part rent; help from mum and dad; or buying with a friend or partner, consider all your options and what would work best for you.