30 Nov London mortgage broker tips for first time buyers
If you’re a first time buyer you probably think owning your own home is a pipe dream at the moment.
Given the low interest rate climate in which we now live, many people who are already on the property ladder have already secured for themselves cheap loans of sub 3% or even 2.5%.
Unfortunately these great deals have remained stubbornly out of reach for anyone without the bank of mum and dad to fall back on.
So what’s the solution?
London mortgage broker tips for first time buyers
The first thing to bear in mind is that things have always been tough for firsttime buyers. The reality is that it has always been necessary to beg borrow and steal to get on the property ladder, and although it may be a painful pill to swallow, you may not be able to buy a property that is as nice as the place you rent.
That said there are many things you can do to make things easier for yourself. Here are our top tips for first time buyers.
3 years documentation
Firstly, make sure you have documentation for 3 years address history in place with no gaps. In addition, be prepared to have your last 3 months bank statements and payslips, and your last year’s P60. If you’re self employed, you will need your last 3 year’s accounts.
Credit reports for first time buyers
It is also worthwhile getting a copy of your credit report with a company like Experian or Equifax to see if there are any issues in your history. Little things like regularly paying off your credit cards, and making sure you are registered on the voters role at the same address as where you live can also help.
Agreement in principle (AIP)
Another good idea is to get an agreement in principle, or AIP before you go house hunting. This lets you know how much a lender will give you based on your circumstances and will give you a realistic indication of what price ranges for properties you should be looking at. It also demonstrates your creditworthiness and seriousness to the vendor of the property.
Mortgages for first time buyers
Ultimately, the UK property market cannot recover without firsttime buyers and it’s great to see that in the last quarter, the number of first time buyers in London reached a 3 year high according to the Council of Mortgage Lenders.
Make sure you are prepared and, with a little luck, you may be among them!