Your home may be repossessed if you do not keep up repayments on your mortgage.
When it comes to buying your first home you should be planning well in advance.
The two main things that are essential when buying a home are:
1-Saving up enough money for a deposit
2-Getting your credit score in the best possible shape
This will take time to achieve which means the sooner you start the better.
According to government figures, the average house price in the UK is £226,000 which is more than 7 times the average salary. Bearing this in mind, unless you have family members who are helping with the deposit it could take some time to save up the amount needed, hence why you should start saving early on.
Your credit score is something all lenders will check when you apply for a mortgage. They will want to see how you manage your financial commitments both now and in the past. They will be looking for late or missed payments, how much credit you are using, whether you have any county court judgements and if you are on the electoral register.
Affordability is something all lenders will look at when you apply for a mortgage, they will look at lots of things such as:
-The stability of your job, how much you earn and the likelihood of this not changing negatively
-Your general outgoings each month such as utility bills, rent, phone, food, travel etc
-Any savings you have/make, this will include things like pensions. The main reason they look at this is to find out if you could cope financially if you lost your job
-Lifestyle outgoings such as gym membership, nights out etc
We would recommend cutting back on any unnecessary spending a few months before you apply for a mortgage.
The sooner you start getting yourself mortgage ready the easier it will be when you’re ready to buy.
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