The Property Ladder In Plain English

To most of us, the world of mortgages and the property market is one big mystery. There's so much jargon being thrown around and confusing articles about the market, and all you want is a place to call your own, right? While getting on the property ladder is never easy, this post that will make sure you’re up to speed with the basics.

Figure Out How Much You Can Afford
The format of mortgages has changed a lot over the years. These days, what you can borrow doesn’t just depend on your earnings, but what you spend as well. Take some time to look at your earnings and outgoings. If you’ve been tracking your income and spending for a while, this should be a breeze. If you haven’t been sticking to a budget, or you’re a little shaky on your outgoings for any other reason, you’ll need to take some time to work them out. Fortunately, there are various tools that can help you with this, such as the mortgage calculator you can use at This Is Money. After entering a few fields, this app will show you plainly what you can afford to pay for a mortgage each month.

Calculate the Deposit You’ll Need
The bigger the deposit you can put down, the better your options will be. You’re going to need to come up with at least £10,000, but possibly more depending on the area of the country you’re looking to buy in. Regardless of location, the trick here is saving as much as you can for as long as you can. While deposits are pretty universal with most banks and financial institutions, there are online resources like Lending Expert which can help you find the best deals possible for your income and credit. Today, confidence in the property market is relatively high, and support for first-time house buyers from the government has improved rates massively for those who can only afford smaller deposits. Depending on your personal situation, you may be able to obtain a mortgage for a 15, 10, or even 5 percent deposit. All this aside, the one thing you should be thinking of when it comes to getting a deposit together is saving as much money as possible, on everything possible.

Credit Can Make or Break your Mortgage
Your credit rating is one of the most significant things lenders are going to look at when they’re chewing over your mortgage application. When you’re preparing to make your application, checking your credit rating is a very smart move, as you’ll be able to see what lenders see. If it isn’t what you thought it would be, don’t worry! If you’ve given yourself enough time, you’ll be able to take steps to improve your credit rating before you apply. Closing your unused credit card accounts, scouring your report for errors and having them repaired, and even little things like getting on the electoral roll, can all make a big difference to your credit, and how you’re perceived by lenders.

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