There’s no two ways about it – taking on a mortgage can be a daunting prospect. For the vast majority of Britons, a mortgage is often the biggest financial commitment taken on during one’s lifetime. Yet there are various steps that people can take to make the process a bit less stressful and, with the right advice and support, the mortgage approval process needn’t become a headache.
As has been continually reported in the mainstream media, more first-time buyers are finding it challenging to get on to the property ladder. The financial crisis did this no favours and even now, some nine years later, the austerity effects are still felt, and banks can still be pretty cautious when it comes to lending.
It therefore makes sense that first-time buyers are most affected – after all, it’s a big commitment, and it’s not that uncommon for younger people/ couples to have relatively little data in the way of proving to banks that they can keep up with their repayments.
The Mortgage Hub’s Wilson Kane, who’s worked in the financial services field since 1991, boasts over 30 years of experience in the industry, and has shared some insights and tips to those looking to find out more about the mortgage approval process.
First point to consider
One of the first steps to take is to get an idea of how much you can realistically afford to borrow – and pay back. Wilson said: “Using independent calculators can really help first-time buyers’ work out what size of mortgage they can afford. But people must always ensure they don’t overstretch themselves – it’s important to leave yourself some financial breathing space in case of unforeseen expenses.”
Indeed, Wilson’s view is similar to that of The Money Advice Service. The site, which is independent of any financial institution and aims to provide free advice and guidance on all finance-related matters, reckons there are some key steps to consider regarding the steps to mortgage approval.
Savings – and the help available
The Government-backed Help to Buy ISA has been popular amongst first time buyers; according to Development Finance Today, Help to Buy could soon exceed one million completions.
In many ways, it’s easy to see why the Help to Buy ISA continues to be such a popular choice for young people/ first-time buyers. For every £200 (the maximum contribution per month) that a saver puts away, the Government will contribute £50; the maximum Government bonus is £3000. With first time deposits at an all-time high, this has the potential to make a real difference to many first-time buyers chances of securing a mortgage.
Choosing the right mortgage
We all have different circumstances, and so it’s important that different mortgages reflect that. According to The Money Advice Service, selecting the right mortgage can be time consuming, and so it’s important to get the right advice from a trusted Independent Financial Advisor (FIA), mortgage broker, or lender.
The Mortgage Hub’s Wilson Kane reckons that having someone with the relevant knowledge and industry experience to guide you through the mortgage approval steps is “paramount to success”.
“Obtaining the right mortgage can be a real challenge for anybody, let along first-time buyers. We believe that our ‘hand-held’ approach ensures customers that not only are we with them each step of the way, but that they are also safe in the knowledge that every aspect of the approval is tailored to them,” said Wilson.
Making an offer and the steps that follow
Once the right mortgage has been decided on – and approved – it’s time to put it to good use; buying that dream first home. As stated by The Money Advice Service, a solicitor handles the legal work surrounding buying a property, and will ensure there are no major faults with the building.
Provided everything checks out with the valuation of the property, and you’re happy to proceed with the price agreed, it’s time to contact your lender. From there, it’s a case of some final checks before exchanging contracts – and signing on the dotted line to complete the sale.
The right support is key
With over 30 years’ experience in the industry, The Mortgage Hub can provide with a service from start to finish, overseeing the mortgage approval process and guiding you through the complexities of buying your first home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The Mortgage Hub Ltd is authorised and regulated by the Financial Conduct Authority who oversees all financial business in the UK. You can find us on their website www.fca.org.uk . Our registration number is 460207. Our registered address is 38 Cadzow Street, Hamilton, ML3 6DG.