Expert View: Mortgage advisor Paras Mehta has some tips for first-time buyers
- Credit: Archant
Buying a property is likely to be one of the most expensive purchases you ever make, which is why it is so important to plan well and get professional advice.
Paras Mehta, mortgage adviser at KDW Independent Planning, shares five key points that all first-time buyers should consider:
Start planning well in advance
It’s a good idea to speak with a mortgage adviser 6-12 months before you are planning to buy. This allows you to get an idea of how much you are able to borrow and flag up any changes you might need to make to your finances.
Saving for a deposit
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You will need to save a minimum of 5 per cent of the price of the property. The larger your deposit is, the better the rates you will be offered.
‘Help to Buy’ government schemes are available to help those that can only save 5 per cent.
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Try cutting back on unnecessary purchases - you could save as much as £600 in a year just by stopping buying a daily coffee.
Check your credit score
Don’t forget to check your credit score. Even if you have a decent deposit and salary, a bad credit score could result in your mortgage application being refused.
Understand the implications of your financial commitments
It is important that you understand that any financial commitments you have such as car payments, a student loan or even gym membership will affect the amount you can be lent. Review your financial commitments checking you are being as efficient as possible
Set some money aside for the additional costs
As well as a deposit, you will need to have some money put aside to pay for solicitor’s fees, stamp duty and a survey of the property. It is also vital to purchase home insurance; this will need to be in place by the date of your exchange.
If you would like to talk to Paras about buying your first property then please get in touch:
Tel: 01727 85 22 99