Our finances are becoming more complicated, our approach to lending doesn’t have to be
'Nontraditional' income streams can no longer be overlooked when it comes to mortgage lending.
Could this be the year you buy your first home? Given that buying a home is the single biggest purchase most people will ever make, it’s important to get it right.
If you're a first time buyer, here are ten key steps on the journey to picking up your keys!
-
Get in touch with a mortgage provider
Agree a mortgage in principle; this will tell you the price of the property you can afford to buy. -
Go dream house hunting!
Look at as many properties as you can to get a good idea of what's out there. Don’t forget to explore local facilities and amenties to make sure the area will suit you, particularly if you're moving away from where you currently live. -
Make an offer
When you find the house for you, you're free make an offer. However, you'll need to keep in mind the amount you can borrow. -
Meet with your mortgage provider
Speak to your mortgage provider and finalise the application for your very first mortgage. This can take some time, but you can speed it up by having all of the documents you'll need (such as ID and bank statements) ready and waiting. -
Decide what you need to know about the property
The property will be valued, producing a basic report. If you want to know more about the property, you can organise for a home buyers or full building survey to be undertaken. -
Instruct a solicitor
Now you will need to find a legal representative to undertake the conveyancing process for you - this is called 'instructing' a solicitor. Conveyancing is simply the term for the legal process of purchasing a property. -
Receiving an offer
If your mortgage provider is satisfied with all the information in your application, they will make you a mortgage offer. -
Paying the deposit
You will need to pay the deposit to your solicitors, who will arrange the purchase. -
Contract exchange
The contracts will now be exchanged and a completion date agreed. -
Completion day
Your purchase is now complete and you can collect the keys to your first home. Congratulations!
Remember, within your initial purchase, various fees may be payable, including; stamp duty, solicitors fee, valuation fees, application and booking fees.
Have you considered Shared Ownership?
Purchasing a Shared Ownership property means part buying, part renting your property. You’ll buy a share of the property at first, paying rent to a housing association or landlord for the rest. You will only need to pay a deposit on the part you are initially buying. You will be paying your mortgage as well as rent to the housing association or landlord.
Buying this way could mean a lower initial deposit with an option to buy more shares further down the line.
Newbury Building Society also supports Help to Buy remortgaging, now that the Help to Buy purchase scheme has closed.
