Finding a home you love is one part of moving. Working out the best way to pay for it is another.
Mortgages can be confusing, particularly if it’s been a while since you last moved or you’re buying for the first time. There are different lenders, rates, fees and mortgage types to consider, and the cheapest-looking deal isn’t always the one that works out best.
This is where a good mortgage adviser can be useful.
Do you actually need a mortgage adviser?
You don’t have to use one. You can approach a bank directly and arrange a mortgage yourself, but that does mean doing much of the research on your own.
A mortgage adviser will look at your circumstances before recommending suitable options. They’ll want to know things like your income, deposit, existing commitments and the amount you’re hoping to borrow.
It’s also a chance to ask questions. Fixed or variable? How long should you fix for? What happens when the initial deal ends? And how much are those arrangement fees actually going to cost?
For first-time buyers especially, having somebody explain things without assuming you already know the terminology can make the process feel a lot easier.
Looking beyond the headline rate
It’s very easy to compare mortgages based on the interest rate alone. Unfortunately, there’s a bit more to it than that.
Some deals come with arrangement or valuation fees, while others may have charges if you want to leave the mortgage early. The length of the deal matters too.
A mortgage adviser can look at the overall cost rather than simply pointing you towards the lowest rate on the page.
They may also have access to a wider selection of lenders than you’d find by walking into your usual bank. The exact choice will depend on whether the adviser works across the market or with a smaller panel of lenders, so that’s a useful question to ask at the beginning.
They can help with the paperwork too
Anyone who’s bought a house before will know there’s quite a bit of paperwork involved.
Once you’ve decided on a mortgage, an adviser can help with the application and tell you what documents the lender needs. If the lender comes back with a question, you’ll also have someone familiar with your application to speak to.
It doesn’t guarantee there won’t be the occasional delay, but it can make it easier to know what’s happening and what you need to do next.
Finding someone you’re comfortable with
A mortgage is a big financial commitment, so don’t feel you have to go with the first adviser you speak to.
Check that they’re appropriately qualified and regulated, and ask which lenders they can consider. You should also know how they’re paid. Some advisers charge the buyer a fee, some receive commission from the lender and others use a combination of the two.
More than anything, you should feel comfortable asking questions. If something doesn’t make sense, a good adviser should be able to explain it in plain English rather than leaving you even more confused than when you started.
Get the mortgage conversation started early
You don’t need to wait until you’ve found the perfect home before speaking to somebody about a mortgage.
Having an early conversation can give you a much clearer idea of what you can realistically borrow and what your monthly payments could look like. You can then start looking at homes with a budget in mind rather than finding something you love and trying to make the numbers work afterwards.
If you’re considering one of our Eleanor Charles Homes developments, getting your finances in order early can make things much simpler when the right home comes along. And with our smaller developments and more individual homes, we’re always happy to talk you through the buying process and what happens next.