So you have decided that taking out a first mortgage is for you, what happens then? Getting your first mortgage can be daunting so it is imperative that you get advice from someone that you trust and in good time.
It would be advisable to discuss your potential mortgage before you find the perfect house, setting up a mortgage can take a couple of months, so getting the ground work done first can be a good way to speed things along.
Whilst there are many different mortgage options to you, over the internet, in banks, through independent advisors, the way that you get a mortgage will be fairly similar.
First of all it is important to work out how much you can afford, generally lenders will let you borrow 4 times your annual salary, or if you are borrowing in joint names, 2.5 times your joint annual salary.
This simple mortgage calculator will give you an indication to the amount that you will be able to spend on your new home.
Once you know how much you can borrow, you need to look at how much you can afford. Look at all your outgoings, including food and money for socialising and see how much you have left at the end of the month. This amount will need to cover electric/gas, water rates, telephone bills, council tax, home insurance and your new monthly mortgage payment. Be sure to be positive that you can afford to live. Having a house will be no fun if you cannot afford to eat or have the occasional night out with your friends.
You will need to make sure that you have proof of your income, 6 months payslips should be sufficient, as well as 6 months bank statements.
In order to help lenders in the fight against money laundering, it will also be necessary to prove your identity, so make sure you have a valid passport, in date and in the right name, or an in date driving licence.
Once you are armed with all this information then it is time to shop around for a mortgage advisor that you are comfortable working with.