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Making a house your home – are you ready to buy?

Young excited couple celebrating in front of home

Purchasing your first house is not merely just a case of buying bricks and mortar – it’s also a statement that you are ready to make a mature financial commitment towards your future and make a home for yourself or your family.

But how can you achieve this? Buying your first property can be a veritable minefield so it’s essential that you go into the process with as much information as possible.

How much deposit will you need and is it affordable?
As a general guide, a deposit of between 5% and 20% is needed to secure your house purchase. The deposit amount needed can vary so it’s important that you’re fully of aware of how much you need to save from the outset.

Another factor that needs to be considered is the affordability: are you prepared for the ongoing monthly costs that a mortgage and its associated facets will bring? (e.g Solicitor’s fees, Buildings insurance, furnishing and decorating costs). Planning for these early and including them in your financial calculations can help you determine whether your dream move is feasible.

Finding a mortgage
Once you’re confident that you can cover the costs, you need to secure a mortgage for the property. There are a multitude of different providers, terms and types of mortgages available so it’s imperative you choose the one that’s best for you. It can help to speak with a mortgage broker who will be able to guide you through some of the more complex minutiae of the application process.

Lenders will want to know that you are able to keep up repayments on the mortgage even if circumstances (such as interest rates or your income) change. This can mean providing payslips and bank statements to demonstrate your capacity to re-pay. Self-employed applicants may have to provide tax returns and business accounts prepared by Accountants.

What can you do if you’re struggling to get a mortgage?
It may be possible to apply for a guarantor mortgage – this means a parent, guardian or close relative effectively “guarantees” the repayments if you are unable to meet them. It is vital that you understand the implications of such an arrangement as it is legally binding on both parties. However, not all lenders offer this facility so it’s important to check.

If you need further advice on mortgages Clayton Holmes Naisbitt would be delighted to help you. Call 0113 3878240 or visit www.chnfc.co.uk to talk to a consultant.

*Your home may be repossessed if you do not keep up repayments with your mortgage

Clayton Holmes Naisbitt