Whether you’re applying for your first-ever mortgage or you’ve been through the whole process before, it’s important to have all of your ducks lined up and all of the information in one place.
Early preparation is going to save you a lot of time and stress in the long run and, to help you get the best understanding possible of the wonderful world of mortgages, we’ve asked our Financial Services Director, James Keable, to answer some of Google’s most asked questions.
- What is a mortgage?
So, a mortgage is essentially one giant loan that allows you enough money to purchase your new property. No, it doesn’t suddenly mean you are rich and, of course, you won’t actually ever physically see the money but it will be paid back over several years in monthly instalments.
Lenders make their profit by charging interest on the money they lend and, with this sort of loan, the bank or building society is putting a charge on your property, which means they are securing the loan against the property.
So, you will need to make sure that you can keep up with your monthly payments or that the bank can get the money back by selling the property.
Lenders will fully assess your circumstances before approving any loan and will usually give the best deals and lowest interest rates to buyers that can put down the biggest deposits. But, don’t worry, if you’re a buyer with a smaller deposit, there are some really great schemes out there to help you to take that first step on the property ladder and our mortgage experts are here to help with all of them.
- How do I get a mortgage?
To get a mortgage, you will need to find a lender or mortgage broker to help you start your mortgage application process. Ward’s very own mortgage experts can help you to start the process or, if you prefer, just give you some free, no-obligation advice. Once they have fully assessed your circumstances and discussed your ambitions, they will advise you on what’s possible.
- How much money can I borrow for a home?
That will vary from person-to-person and depend on your individual circumstances but, typically, mortgage providers will lend you around four or five times your salary.
Your mortgage offer is contingent on your affordability – which is a calculation of your income and outgoings that essentially determines your risk – because, at the end of the day, you need to be able to live as well as pay your mortgage. Everything needs to be taken into account.
- How long does a mortgage application take?
With the help of an expert broker, making a mortgage application can be very quickly navigated and you might expect to get your mortgage offer in 2 to 3 weeks, depending on the lender and complexity of your circumstances.
To help with the process, always ensure that you submit all the correct paperwork, signatures, proof of income and identification so that there is nothing to slow the application down.
Remember, preparation is key!
Your local mortgage experts at Wards and Mortgage Matters Direct are on hand to help you, whatever your situation. We can talk you through a number of different options and present you with exclusive rates that aren’t available anywhere else.
So, get in touch with us today and let’s get you moving forward!