3 mortgage mistakes commonly made by First Time Buyers
Buying a home, and your first home at that is an extremely exciting yet daunting experience. It’s also a huge financial investment and commitment that requires preparation and planning. We regularly see First Time Buyers make the same three mistakes; so in this blog, we detail them for you so that if you are a first-time buyer, you might avoid them!
Talking to just one potential lender.
The property market is h-u-g-e, and a lot bigger than most buyers think. Don’t just settle for the first couple of houses you’ve found.
High street lenders are well known but it doesn’t mean that they are necessarily the best lender for you. Smaller, less well-known lenders are often specialists in particular circumstances or lend in geographical regions of the UK only. This is when a whole-of-market broker comes into its own as they can shop around. If you go to one well-known lender, the only deal they can offer you is from their product range. There may well be a better deal out there for you.
Lack of financial awareness.
Now more than ever, a deposit is required to enable you to buy your first home. But, that’s not all that needs to be considered.
Purchasing a home is a long-term investment that needs a thorough examination of your finances. This includes your monthly income and expenditure because every month now, you’ll have running costs that will need to be paid.
Many first-time buyers believe they have the flexibility to stretch their deposit without considering long-term costs. You don’t want to find yourself struggling each month to make ends meet with monthly repayments on a property that you cannot afford. Our team will help you budget so that your home and its potential running costs are affordable.
Going it alone.
Many first-time buyers believe it’s cheaper to sort out their mortgage themselves. Often, because it’s, well ….. cheaper! This is not entirely correct.
A whole-of-market broker will have years of expertise and experience in the mortgage and insurance market, will be able to advise what mortgage type is suitable for you and your longer-term financial aspirations.
A broker will also scour the market far and wide to ensure you are given the best deal on your mortgage and can even help you with how to make better decisions in the long run.
If you are a first-time buyer, get in touch with First Financial Solutions today. We offer impartial advice and support on securing your first mortgage.
Call us today on 01639 262222 or click here to email us.
* Your property may be repossessed if you do not keep up repayments on your mortgage.