Credit Report

Your credit report is vital for first-time home buyers in the UK as this can be an indication to the mortgage lender whether you can or can not make payments on time. 

Therefore, checking over your credit history is going to be vital when considering the purchase of your first home. This can be done in a variety of ways such as building your credit history, paying regular payments on time or even just by proving where you currently live on the electoral roll.

A strong credit history is possibly one of the most valuable assets that a person can have when making an application for a mortgage, which is why it is one of the most important things to consider when buying your first house.

Your Budget

For a first-time home buyer wondering how it could ever be possible to afford your first house, especially with the house prices in the UK currently, it should be one of your largest concerns to ensure that you can afford the house that you are looking at with the money you have at your disposal and will not get caught in a difficult financial situation.

The solution to these problems may not be to look for a cheap property as you still want to consider the area, size etc so it is good to find a balance between cheap and quality.

ISAs may prove to be the best option as these are an easy way for you to save up your money passively with each day you receive payment from your place of work. Check out this page about the costs of purchasing a house.

Staying in the Same Job

One thing that many mortgage lenders may be looking for is that you have been in your current job for a sufficient length of time before they will consider allowing you to mortgage a property.

This will show lenders that you will be able to consistently pay your monthly mortgage payments as you are in a reliable and stable job. Once your mortgage has been acquired, switching your job will not impact this going forward so it may be a good idea to postpone any planned job switches for some months until after the completion of your mortgage.

Debts

For many lenders, the last thing they want to see on your mortgage application is that you owe a lot of money in debt to various sources like credit cards and loans etc.

Before applying for your mortgage, it is important to check and reduce any outstanding debts that you have which can demonstrate responsibility with your money management and would therefore make an application much more likely to be successful.

Buying with Someone Else

Purchasing new properties whether they be a second or first home can be crippling to some people’s finances, so it may be a good idea to consider buying with another person such as a friend or partner.

This can make the whole process much easier and allow you both to halve the costs you would have had when buying your own houses separately meaning that you can spend less time worrying about your finances and have more time to decide the location of your house, the neighbourhood, the view and all of the more fun parts of property buying.

Your Deposit

The deposit you pay on a property is directly linked to the total amount you have to pay per month after your mortgage has been acquired.

The more that you are able to pay upfront for your deposit, then the less you will have to pay monthly for your mortgage payments so a larger deposit will be greatly beneficial to you and your finances in the long haul.

Speak to an Advisor

One of the best tips that anyone can give to a first-time home buyer is to speak to a professional mortgage advisor.

These experts will be able to provide you with the best deals, rates and quotes for housing that are available as well as clueing you up on consumer rights, insurance, interest and investing along with much more. 

At LTC Mortgages, our team of experts can guide you through the process of purchasing a house. We can also help with remortgaging and buying-to-let too, finding the best rates for your position. Contact us today to learn more.