6 common mistakes to avoid before trying to purchase a property
Buying a home for the first time can be an exciting and intimidating experience. It’s important to approach the process with caution and avoid common mistakes that can cost you time, money, and headaches. In this blog article, we will discuss the 6 most common mistakes that first-time homebuyers make and provide tips on how to avoid them.
Whether you’re in the market for a new home or just starting to think about buying, this article will help you navigate the process with confidence and ease. So sit back, relax, and get ready to learn how to avoid the most common pitfalls of first-time homebuyers.
If you have any questions or concerns about the home-buying process, don’t hesitate to reach out to us. We are here to help you make informed decisions and guide you through every step of the way.
You can contact us via 03455 120 125, use our contact form, or you can even use our online chat feature. We are happy to hear from you and provide any assistance you need.
Failing to establish how much you can borrow
Before you start viewing properties, you should establish how much you’re able to borrow. Once you’ve worked this out, you will have an accurate price range and begin to view properties.
Not working out a monthly budget you can afford
There’s no point buying a house if you cannot afford to leave it. Knowing how much you can borrow will help you understand how much your mortgage payments are likely to be, so you can budget accordingly.
Not having the correct documents ready
To accurately work out your affordability, you should ensure you have payslips/tax returns and your credit report to hand. Without these documents, no adviser will be able to provide accurate figures and things become guesswork. There’s nothing worse than viewing a property you love, then realising you cannot afford it. Your adviser will confirm exactly what you’ll need.
Not getting an AIP, or Agreement in Principle
When you make an offer on a property, an estate agent will ask for your Agreement in Principle – a piece of paper that confirms a mortgage lender has provisionally approved the amount you would like to borrow. If you don’t have this in place, they may not take your offer seriously and move onto another buyer.
Choosing a solicitor based on cost
It can take more than three months to complete a purchase – it’s the legal work that takes the greatest amount of time. There are lots of solicitors that may appear extremely cheap, but they can be very slow to respond, update or communicate, which adds a significant amount of time and stress.
Sometimes, if you can pay a little bit more and obtain a solicitor who will be proactive, experienced, great with chasing the other side and will communicate their updates with you. Choosing the right solicitor can remove a lot of stress.
Choosing the wrong mortgage broker
Choosing the right mortgage broker is crucial. Read reviews from previous clients to ensure they are the right fit for you. They should help you understand the pros and cons of each option. A good broker will update the estate agent on your behalf, liaise with the solicitor for progress reports and keep you updated each step of the way. They will discuss the importance of life assurance, home insurance and any other relevant insurances and discuss the importance of writing a Will.
Essentially, the right adviser will guide you from the start, through to the finish – and beyond.
We’ve covered some of the common mistakes that first-time homebuyers should avoid, but there may be others that we haven’t mentioned. If you want to learn more about how to avoid these pitfalls and make informed decisions, please don’t hesitate to contact us.
At Thameside Mortgages, we have a dedicated team of professionals who are happy to help you navigate the home-buying process. You can reach us by phone at 03455 120 125, use our contact form on our website, or via our online chat feature.
We look forward to hearing from you and helping you achieve your homeownership goals!
Getting a mortgage is a huge financial commitment, and it’s important to take it seriously and make informed decisions. That’s why it’s a good idea to get advice from mortgage advisors in Kent, like Thameside Mortgages.
These advisors have access to more than 90 lenders in the market and can find the best deal for you based on your unique situation.
So, let’s talk about the top SIX reasons why you should consider seeking the help of a mortgage advisor in Kent.
Thousands of products at their fingertips
A mortgage broker can save time and effort for a client in several ways. Firstly, brokers have access to a wide range of mortgage products from different lenders, which means they can quickly narrow down the options and present the most suitable products to the client based on their needs and financial circumstances.
Extensive knowledge and expertise
Mortgage brokers possess extensive knowledge and expertise in the mortgage industry that can only be acquired through experience. This enables them to offer valuable insights that can aid in shaping a mortgage recommendation that suits your unique circumstances.
By seeking their services, you can effortlessly navigate the complexities of the mortgage process and have all your queries answered with ease.
It can save lots of time
Using a mortgage broker can save time because the broker is responsible for researching the various mortgage products available from multiple lenders, comparing their features and costs, and presenting the most suitable options to the client.
The broker can also handle the administrative work associated with the mortgage application, such as filling out paperwork, gathering necessary documents, and liaising with lenders, solicitors, and other parties involved in the process.
This allows the client to focus on other aspects of their life, such as work or family, while still ensuring that their mortgage needs are being taken care of in a timely and efficient manner.
Additionally, because brokers often have existing relationships with lenders, they may be able to expedite the application process and secure faster turnaround times than if the client were to approach lenders individually.
Greater chance of approval
Mortgage brokers possess extensive knowledge of lender criteria, enabling them to understand each lender’s specific requirements and guide borrowers towards the most suitable lenders for their specific circumstances.
They have a keen understanding of what each lender will accept, including varying income types, and what documentation is required to obtain mortgage approval, increasing the likelihood of approval.
Additionally, brokers can offer guidance on improving creditworthiness, such as paying down debt or resolving credit report errors, which can also enhance the chances of securing a mortgage.
You’ll receive qualified advice
Using a mortgage broker can be better than going directly to a lender because brokers are required to provide advice that is in the best interest of the borrower. They are regulated by the Financial Conduct Authority (FCA) and must follow strict guidelines and rules to ensure that they act in a fair and ethical manner, even though most BTL mortgages are not regulated by the FCA.
In contrast, if you go directly to a lender, they may only be required to provide information about their own products and are not obligated to offer advice or help you compare other lenders in the market. This can result in a more limited range of options and potential biases towards their own products.
Using a broker also means that you have an advocate on your side who can help you navigate the complexities of the mortgage process and answer any questions you may have. They can provide you with valuable insights and expertise that you may not have access to otherwise. This can lead to better-informed decisions and potentially better outcomes in terms of interest rates, fees, and overall mortgage terms.
Personalised service and on-going support
Brokers are often flexible and can work around your schedule, offering appointments at times that are convenient for you.
They can provide ongoing support throughout the mortgage process, from the initial application to completion and beyond, taking time to understand your financial situation and tailor their advice to your specific needs.
This can help ensure that you get the right mortgage product for your individual circumstances.
A mortgage broker will offer a personalised and ongoing service to ensure clients receive the best possible advice throughout the mortgage process.
Firstly, they will take the time to understand each client’s unique financial situation and goals, and provide tailored advice based on this. They consider various factors such as credit history, employment status, income, and debt, among others, to find the most suitable mortgage product for the client.
In addition, the service shouldn’t stop once the mortgage has been arranged. A good broker will continue to provide support and advice to their clients throughout the life of the mortgage, including the renewal process when it becomes due.
The ongoing service means that clients can have peace of mind knowing that they are receiving up-to-date and relevant advice from an experienced and knowledgeable mortgage broker.
If you’re looking for a mortgage advisor in Kent that will genuinely listen, seek to understand your situation and advise you on the best options, get in touch with Thameside Mortgages today by calling us directly on 0345 512 0125 or use our online contact form and we’ll get back to you promptly.
Our small, but friendly team will take the time to understand your unique situation and provide personalized recommendations that are tailored to your specific needs.
Are you coming to the end of your mortgage deal and considering remortgaging? It’s important to be aware of the common mistakes that homeowners make when remortgaging, so you can avoid them and make the best decision for your financial future.
In this article, we’ll outline six mistakes that people often make when remortgaging and provide tips on how you can steer clear of them.
You can contact us via 03455 120 125, use our contact form, or you can even use our online chat feature. We are happy to hear from you and provide any assistance you need.
Failing to shop around
When remortgaging, many homeowners tend to stick with their current lender or simply take the first offer that comes their way, without exploring other options. However, failing to shop around for the best deal could cost you in the long run.
Different lenders offer different interest rates, fees, and terms, so it’s important to compare them to find the best deal for your needs and financial situation.
By taking the time to shop around and compare deals, you can find a remortgage that suits your needs and saves you money in the long run. Remember, a lower interest rate is not always the best option if it comes with high fees or unfavourable terms, so be sure to read the fine print and consider all factors before making a decision.
Ignoring fees and charges
When comparing remortgage options, it’s important to look beyond just the interest rate and consider all the fees and charges associated with the new mortgage. These fees may include arrangement fees, valuation fees, legal fees, and other charges that can add up quickly and impact the overall cost of your remortgage.
Arrangement fees, also known as booking fees or product fees, are charged by lenders to set up the mortgage and can range from a few hundred to thousands of pounds. Valuation fees are charged by lenders to determine the value of the property, and can range from a few hundred to over a thousand pounds.
Legal fees are charged by solicitors or conveyancers to handle the legal aspects of the remortgage process, such as transferring the mortgage from one lender to another.
When comparing remortgage options, make sure to ask about all the fees and charges that come with the new mortgage, and factor them into your calculations. It’s also important to consider whether you can afford to pay these fees upfront or if you’d prefer to add them to your mortgage balance and pay them off over time.
By considering all the fees and charges associated with the remortgage, you can make an informed decision and avoid any surprises or unexpected costs down the line. Remember, the lowest interest rate doesn’t always mean the cheapest overall cost, so it’s important to take a holistic view of the fees and charges associated with each option before making a decision.
Clients may be focused on securing a lower interest rate in the short term, but it’s important to consider the long-term impact of the new mortgage. This includes the total cost of the mortgage over its lifetime, the length of the mortgage term, and the impact on monthly payments.
Not checking your credit score
When applying for a remortgage, it’s important to have a good credit score, as this can impact your ability to secure a good deal. Lenders use credit scores to determine the risk of lending to a borrower, and a poor credit score can lead to higher interest rates or even rejection of the application.
Before applying for a remortgage, it’s a good idea to check your credit score and ensure that it’s in good shape. You can obtain your credit report a credit reference agency, such as Equifax, Experian, or TransUnion.
If your credit score is low, there are steps you can take to improve it before applying for a remortgage. These may include paying off outstanding debts, making sure that you’re registered on the electoral roll, and avoiding applying for too much credit at once.
By checking your credit score and taking steps to improve it if necessary, you can increase your chances of securing a good deal on your remortgage. It’s also a good idea to consult with a mortgage broker, as they can help you find lenders that are more likely to lend to you based on your credit score and financial situation.
Taking on too much debt
When remortgaging, you should be careful not to take on too much debt, as this can lead to financial difficulties in the long run. It’s important to consider other debts, such as credit cards and loans, and to ensure that the new mortgage payments are affordable.
Taking on too much debt can put a strain on your finances and make it difficult to keep up with monthly payments. This can lead to missed payments, late fees, and even default, which can have a negative impact on your credit score and financial stability.
Before remortgaging, it’s important to take stock of your overall debt load and ensure that you can afford the new mortgage payments.
This may involve consolidating other debts or paying off outstanding balances before taking on a new mortgage. It’s also a good idea to create a budget and stick to it, to ensure that you can afford your monthly payments and other living expenses.
When considering a remortgage, be sure to factor in any fees or charges associated with the new mortgage, as these can add to the overall cost of the loan. A mortgage broker can help you compare different mortgage options and find the one that best fits your financial situation.
By being careful not to take on too much debt and ensuring that the new mortgage payments are affordable, you can avoid financial difficulties and achieve greater financial stability in the long run.
Not considering your future plans
it’s important to think about your future plans and how they may impact your mortgage needs. For example, if you’re planning to move home in the near future, you may want to consider a portable mortgage that allows you to transfer your mortgage to your new property without penalty.
Similarly, if you’re planning on changing jobs or transitioning to a new career, you’ll want to consider how your income may change and whether your new mortgage payments will still be affordable.
It’s also important to consider any potential changes to your family situation, such as having children or taking care of elderly relatives, and how that may impact your mortgage needs.
Taking the time to consider your future plans can help ensure that you choose the right mortgage option that fits your long-term needs and goals.
Not seeking professional advice
When considering a remortgage, you should consider seeking professional advice from a mortgage broker. These professionals can provide valuable insight and help clients find the best deal for their financial situation.
A mortgage broker can help clients navigate the complex mortgage market and understand the different options available. They can also provide guidance on factors such as interest rates, fees and charges, and repayment terms, to help you make an informed decision.
Additionally, a mortgage broker can help you with your remortgage application and ensure that it’s completed correctly and submitted on time. They can also help clients prepare for the application process by ensuring that they have all the necessary documents and information.
It’s important to choose a reputable professional with relevant experience and qualifications, such as a mortgage broker who is regulated by the Financial Conduct Authority (FCA).
By seeking professional advice, you can make a more informed decision when remortgaging and ensure you find the best deal for your financial situation.
We’ve covered some of the common mistakes that people should avoid when remortgaging, but there may be others that we haven’t mentioned. If you want to learn more about how to avoid these pitfalls and make informed decisions, please don’t hesitate to contact us.
At Thameside Mortgages, we have a dedicated team of professionals who can help you navigate the remortgaging process. Whether you’re looking to switch to a better deal or release equity from your property, we can provide expert advice and guidance tailored to your individual needs.
You can reach us by phone at 03455 120 125, use our contact form on our website, or via our online chat feature. We’re here to answer your questions and help you make the best decisions for your financial situation.
We look forward to hearing from you and helping you achieve your remortgaging goals!
The Bank of England have voted to raise the UK interest rate from 0.10% to 0.25%, which is likely to have an impact on UK mortgage rates.
The Base Rate has previously been held at a record low 0.10% since the pandemic started in March 2020, but has been increased today amid growing pressures under the high UK inflation rate, caused by a surge in consumer prices, high energy costs and significant labour shortages.
The UK Inflation Rate target is 2.00% but was 3.10% in September and surged by 5.1% in the 12 months to November.
“It seems mortgage lenders were anticipating this rise as we’ve seen a quite a few mainstream mortgage lenders withdraw their sub-1.00% mortgage deals in the last few weeks“.
Andrew Sheen, Managing Director.
Does Rising Inflation Need To Be Dealt With?
The Monetary Policy Committee (MPC) is tasked with ensuring inflation does not rise above 2.00%. If Inflation rises above 3.00% (or as low as 1.00%), the Governor of the Bank of England, Andrew Bailey, has to write to the Chancellor, Rishi Sunak to explain what he’s going to do about it.
Raising UK interest rates is a difficult decision to make. If they increase too much, it can stop the economic recovery and even cause a recession. The Bank of England hesitated to raise rates prior to today, in the hope that the rising inflation was short lived.
A number of factors have led to the rise of inflation, such as shortages in raw materials, increased consumer demand, lack of labour/workforce (including logistics/transportation).
While inflation was almost zero at the beginning of 2020, it rose sharply to 3.20% in August, before falling back to 3.10% in September.
The main reason behind increasing interest rates is to make it more expensive to borrow money – great for savers, but not for borrowers.
What does this mean for UK mortgage rates?
We’ve already seen the sub-1.00% mortgage deals disappear over the last few weeks. According to Defaqto, there were 82 sub-1.00% mortgages available, but as of 2nd November, that number dropped significantly to just 22.
However, there is still time to secure a great deal as Interest rates are still significantly lower compared with previous years.
If you have a fixed rate mortgage, you can still secure a new deal with 6 months remaining on your fixed rate. While your existing lender is not likely to offer you a new deal until there are 2-4 months left, we can secure a deal ready for when your fixed rate expires.
We strongly believe that obtaining professional advice is key to finding the right deal for you, so why not reach out to see how we can help.
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. The Financial Conduct Authority does not regulate most forms of buy to let mortgage.