Buying your first property can be both exciting and daunting, there are important decisions to make and criteria to be considered before you take your first steps onto the property ladder. Your Right Choice Mortgages Adviser will assist you throughout the home buying process to ensure you receive the right guidance and advice.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Commercial and some buy to let mortgages are not regulated by the Financial Conduct Authority
Be Realistic
Ensure that you are realistic when working out exactly how much you can afford to spend on your new house. You should ensure the intended mortgage is affordable (by doing a budget calculation) and it is wise to seek a Decision in Principle certificate, so that you know how much you can offer once you have found a suitable property. Even a newly built house will require some sort of furnishings, whereas older properties may require extensive work, such as re-flooring, tiling or renewing the wiring. Make sure that you factor in all these likely expenses, in addition to the purchase price, and other fees such as conveyancing and stamp duty.
Experience
When buying for the first time, there may be a number of details in the houses you are looking at, which you may not pick up. Always take an experienced home buyer, such as one of your parents, or a home-owning friend, when looking at property. If this is difficult to arrange, then make sure you at least get some assistance once you have selected a property you like and are arranging a second viewing. It’s always a good idea to ask when the boiler was installed and last serviced. If it has been a while, you can ask your conveyancer to request a certified boiler service check prior to exchanging contracts.
If your name’s not on there, you’ll find banks, building societies may not consider you. You can register to vote online or by post.
Even having just a slightly wrong address can have an impact on your score. So, make sure you check all the details and report any incorrect information immediately.
Paying on time any direct debits or credit agreements you may have is a great way to prove to lenders that you’re capable of managing finances effectively.
Having a spouse, friend or family member’s credit rating linked to yours through a joint account could affect your personal rating if they have a poor score.
If something on your credit report is incorrect or doesn’t apply to you, i.e. if someone applied for credit in your name without your knowledge, contact the credit reference agency immediately to have your file updated.
Receiving any court judgements for debt will have a serious impact on your credit score. If you’re having problems keeping up with payments, find free debt advice online.
Ideally you should eliminate as much outstanding debt as possible before applying for new credit. This is because banks, building societies and credit card companies might be hesitant about lending you more if you already have a lot of existing debt.
Lenders feel more comfortable if they see evidence that you have lived at one address for a considerable period. Be sure to bear this in mind.
If you’re struggling to improve your score, it’s worth contacting ourselves to discuss ways of improving your credit score and discuss options available to you.
Each agency holds slightly different information about you, so it’s worth checking for a more accurate picture. In general, your file will include:
• Name, address and date of birth
• Some search footprints on your file, such as credit applications
• Financial links to other people – for example, a joint loan or bank account
• Any late/missed payments or defaults
• How much money you owe to lenders
• Any County Court Judgments (CCJs) against you that are not paid in full within one month of receiving the notice.
• If you’re on the electoral register at your current address.
• If you have been declared bankrupt or entered into an IVA (Individual Voluntary Arrangement).
It won’t include the following information:
• Your salary
• Student loans
• Criminal record
However, you will be asked for this information when applying for a mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Commercial and some buy to let mortgages are not regulated by the Financial Conduct Authority
