When you are faced with applying for a mortgage for the first time it can be a daunting prospect. The old saying “forewarned is forearmed” is very appropriate in these circumstances. One of the best ways that you can do this is to look at Sam Conveyancing and their regular House Survey news and updates.
Here are a few bits of terminology that you should be aware of.
Mortgage. This is the loan that you will need to take out to pay for the property that you are looking to buy.
Term – This refers to the length of the mortgage. It is defined by the monthly amount that you can afford to pay. This is the discussed amount reached after a budget conversation with your lender’s mortgage advisor.
Deposit – A large amount of money that you put down, upfront, to buy the home. Unlike other loans, you cannot borrow 100% of the asking price for the property. Most lenders will ask for at least 10% or 5% with a scheme. For example, if the property is selling for £250,000 you will need to have £25,000, meaning that you borrow £225,000.
Survey – When you have secured a mortgage you need to pay for a survey of what you want to buy. This will tell you, and the lender, if the place is suitable to lend upon.
Budget – All of your income and outgoings should be written down on a sheet. This is so that you can figure out how much you can afford to pay each month and still be able to live on your income.
