Buying a home on one salary may be daunting. However, realistically there are likely to be options available to you. Planning ahead is key and working with a mortgage broker can help save you time in researching, as certain lenders tend to be more generous in these circumstances than others. Protecting yourself is also vital.
This does not constitute advice and advice should be sought in all instances before acting on it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
6 tips for buying on your own
If you are single and fed-up with paying rent, you may be considering buying a place of your own. Or, maybe you are in a relationship but you are the only earner, so need a mortgage with just your name on the application.
There are a few things that will certainly help the process and enhance your chances of success.
(1) Save as much as possible for the deposit
Saving a sufficient deposit to put down on your first home is easier said than done. However, the more you can save in advance, the easier it will be for you to find a mortgage.
Because a larger deposit means a lower loan to value (LTV), this should give you access to a wider range of mortgage deals. As you represent a lower risk to the lender, they are generally able to offer you a better choice when it comes to rates.
(2) Stick to your buying budget
When you start to shop around for your first home, it is easy to get carried away and start to look at options above what you can afford.
Choosing a home that is affordable means ensuring you can meet the mortgage payments plus the living costs, without leaving yourself completely broke at the end of the month.
Of course, sometimes with your own home you need to sacrifice some things. The annual ski-ing trip may be has to go on hold for a few years, or you maybe need to be more sensible with your shopping decisions.
It is important though to only view houses that are within your final budget, and stick to it.
Even if the lender is willing to lend you more, you don’t have to borrow to the maximum. Ensure you are going to be comfortable, financially.
(3) Clear other debts
The lender will take into account affordability to assess your risk to them as a customer. This includes looking at your income, but also your expenses too.
If they see other debts, even if you are managing them well, this will be factored in as a regular financial commitment you have to make.
Clearing debts with savings can help with your eligibility of a mortgage.
(4) Research and timing
When looking to take the leap to be a home owner, researching all your options is essential.
Mortgage rates are changing all the time and in recent months so of the longer-term deals have started to increase.
Keep an eye out for our Mortgage Monday posts by following us on Twitter and LinkedIn, so you can make accurate decisions about the timing of your application and purchase.
(5) Protect your new home
If you are making the investment to buy a new home, it is important to take the necessary insurances to protect it in the event you are unable to work.
Life cover is one option to consider, which pays a lump sum upon death.
Income protection though is important and covers your mortgage payments if something happens to you or your job, ensuring you can continue to make the payments and your home won’t be at risk of repossession.
(6) Seek help from a mortgage broker
A mortgage broker can not only save you hours of time by discussing the best mortgage deals for your situation, they can also be a reassuring helping hand on preparing your finances for the application.
Even if you are thinking about buying later this year, make contact now and learn about the things you need to be doing.
A mortgage broker can also help you with the various protection insurances so you get all round help and advice.
Need a mortgage? Speak to Chris
If you are considering buying a home in the near future, Chris can help prepare your application and discuss your options:
Tel: 01403 780 770
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