The Life Post | Looking for a mortgage?

This is totally different to my usual posts - not beauty related at all but hey. For those who don't know me and my boyfriend are looking to buy a house this year, which means obtaining that scary "M" word - Mortgage! Before we started looking it was something I really didn't know that much about, but having sat in a few bank meeting rooms and doing my research I thought I would share my top five things to know when looking into getting a mortgage.

One | Get Your Deposit Together
Bit of an obvious but a lot of people don't really know how much they need. Banks have started doing 5% mortgages, which means they give you 95% - however that means you have a higher interest rate to pay back. What we have discovered is the more you have for a deposit, the less interest you pay. I would aim for around 15% (there isn't a lot of difference in interest between 15 and 20). This basically means you get a good interest rate, but leaves you a bit of money to pay for all the other fees (purchase fee, stamp duty etc.)

Two | Shop Around
Just because you belong to one bank doesn't mean you have to get a mortgage through them. We went around to so many different ones and we've used all of their online mortgage calculators as well to see what we can actually get for our money. A lot of banks do give you better rates if you have a current account with them so this may be worth asking at your bank, or think about opening one up in whatever bank does the best deal for you.

Three | Manage Your Credit Rating
Again, kind of an obvious one but some people really don't know how much this affects your mortgage. If you have a bad credit rating you won't get a mortgage - no argument. So how do you get a good credit rating? For me I got myself a credit card (scary idea yes) but I literally use it for one thing, petrol, and pay it off straight away. Most banks have apps now and I can literally pop on my phone and pay it off then and there. Student loan isn't taken into consideration so don't worry about that - all other loans will be and any monthly outgoings or missed payments will make a difference to what you can borrow. If you want to check your rating I would pop over to Experion and sign up to their free trial to take a peek. Also, when talking to mortgage advisors be aware that you may get credit checked, and the more you get checked, the lower your rating will go - so make sure they are only doing a credit check if it is absolutely necessary or if it's for an actual offer. Halifax and Llyods do a "light check" which means that it won't show up unless you have an offer.

Four | Know Your Salary
Your salary makes a huge difference as to what banks can lend you. This is what has been holding us back, we've had our deposit but our salaries won't get us enough to buy a nice two bedroom house (what we want basically). You need to know exactly what you earn, including any bonuses, and how stable you are in your job. For example, some banks won't lend you money based on your salary if you're still in your probationary period - however some will as long as you have a permanent contract and it's something you have experience in doing. I work in retail at the moment, but if I got a permanent contract at a marketing agency it would be fine as I've worked in one before and I have a degree in media. 

Five | Ask As Many Questions As Possible
If you aren't sure about something, ask. This will be the biggest purchase you make in your life so you need to be sure of what you're doing. If you don't know where to start ask, if you need help saving for your deposit, ask. Mortgage Advisors are called advisors for a reason, they are there for a reason. Take advantage of them! The ones I've met are really nice and friendly, and all they want to do is help as much as possible.

I hope this has helped slightly, or just given you a touch more insight if you're just starting out to look. It's a very scary step so I wish you all the luck if you're looking into it.

Has this helped? Are you looking for a house?


2 comments

  1. this has helped so much Im a long way off buying a place with my partner which is a bummer but everytime I think about it my head hurts from interest rates percentages and what I can get as a mortgage! Ive decided once my credit card is payed off I will continue to put what I would have spent on it away in a savings account to try and build up my deposit. and hoping that in the time our credit rating will improve :) first houses always seem scary to buy, but i am so done with renting! I want my own little place :D
    x
    allthingskerri.blogspot.com

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    1. It is so stressful!!! I wish you all the luck in the world and I'm so glad it helped you :) xx

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