Borrowers need mortgages in various forms. Contractor mortgages, professional mortgages, self-employed mortgages, remortgage services, first time buyers and international mortgages are among the wide range of lenders house mortgages. But residential mortgages are much more important than other mortgages because living in private property is a great incentive for first time buyers.
First time buyers can save much money by using residential mortgages. The use of mortgages also allows them to split the cost of buying their house over several years, to buy the house and pay for it over time.
Challenge To Get Residential Mortgages For First Time Buyers
Despite the importance of residential mortgages, getting these mortgages also faces challenges that include:
- Lack of sufficient knowledge about the products available in the market
- Limiting the lenders’ products
- Expanding lenders restrictions as a result of the Corona outbreak
- Setting special rules for buying property
- Special features and restrictions on choosing a specialist broker
- The complexity of comparing rates and conditions of products on the market
- Difficulty evaluating lenders’ promotional programs
- Difficulty of simultaneously comparing rates and deposits required to get a mortgage and negotiate with lenders about their announced rates and conditions
5 Tips For Residential Mortgages For First Time Buyers
In this section, 5 important tips for getting residential mortgages for first time buyers are mentioned.
- Savings to pay more deposits – They must have enough money to deposit to buy a house. The higher the deposit they can pay, the lower the mortgage rate.
- Good credit score – Their credit score is very important to get residential mortgages. They need to have a good credit score to ensure that they can get a mortgage at reasonable rates.
- Debt reduction – Mortgage lenders are reluctant to offer mortgages if they have significant debt. If they have debts related to daily mortgages or credit cards, they must provide proof of income to the lenders.
- Shared mortgage – Buying a house can be very costly, so a shared mortgage for first time buyers and their partners can be financially rewarding. Mutual mortgages mean making larger deposits and getting better mortgage rates. It also allows them to pay off their mortgages faster and potentially buy a bigger house.
- Use a specialist residential mortgages broker – One of the best tips is to use the services and expertise of a professional broker. A professional broker is fully acquainted with their needs and conditions and evaluates the lenders’ rates and conditions accordingly.
The Role Of Brokers In Getting Residential Mortgages For First Time Buyers
As mentioned above, getting a mortgage for them faces many challenges. For this purpose, it is recommended to use the consulting services of specialised brokers. Because they are not familiar with the products on the market, the lenders rates and conditions and will be unable to choose the best options, this section describes the functions of a specialist mortgages broker for first time buyers:
Pay attention to the needs and goals of first time buyers –
First time buyer help to go through the process of getting mortgages well. The broker estimates the approximate amount of the mortgage they will get while assessing first time buyers’ conditions, needs, and affordability to repay the mortgage. Choosing the right broker lets them to know how much they can get for mortgages.
Organisation and efficiency of the mortgage process –
Brokers assess whether it is financially appropriate for them to get a mortgage. On the other hand, buying a property is a big financial commitment, so they must organise everything. Choosing the right broker will ensure that first time buyers have enough savings and extra savings to pay for other expenses.
Save time and energy for first time buyers –
To get the best deal; they need to talk to many lenders and get their rates and terms. But by negotiating with multiple lenders, the broker will put them in a better position to negotiate with the seller and give them more confidence in how many housing mortgages they get.
Credit Score Improvement –
Brokers also take steps to improve first time buyers’ credit status by providing advice based on estimates of the approximate amount of mortgages they get. They also help them complete the required documents and organise financial records and identity documents, making this process easier.
SWG Mortgage specialist advisors assess first time buyers ‘financial terms and need to provide sufficient information about lenders’ rates and conditions, thereby enhancing their ability to negotiate with the lenders. Our advisors help them improve their credit status and give them more confidence by providing affordable solutions. SWG Mortgage specialist advisors help borrowers find different options and help them find the options they want more accurately.
Talk to our specialist advisors to determine the deposit amount based on the mortgage you are applying for and the lenders’ conditions. They will evaluate your credit score based on your income and debts. Then, give you the most suitable option among the various options.