If you are a first time home buyer looking to buy your dream home around Liverpool, it is highly beneficial that you seek the services of an experienced mortgage broker Liverpool based expert from the onset. Buying your home is likely your biggest financial decision that you will ever make and thus, you must get it right from the onset. Making the wrong decision can kill your dream of owning your dream home or even make you pay more than you should have paid for your home if you had used the services of mortgage advisor in Liverpool.
Why seek the services of an experienced Liverpool mortgage advisor?
Getting a mortgage can be a highly complicated process for beginners as there many different providers and a wide array of rates and products to choose from that make even the second time home buyers seek the services of an independent mortgage advisor. The wide range of options makes the mortgage market decidedly competitive for a first time home buyer to fully peruse and get to know what exactly is the best product on offer. A Liverpool mortgage advisor will take you through the routes of getting a mortgage as well as help you decide on the best product based on your mortgage repayment ability.
Furthermore, although lenders and brokers are required to offer mortgage advice before they can recommend any product to you, they will only give you advice based on the products they have on the table and not the best products currently available on the market. Failure to get the services of an independent mortgage broker in Liverpool increases your risk of ending up with a wrong mortgage product that will turn out to be a costly mistake in the long run or even getting rejected by your provider because you did not understand the circumstances or restrictions attached to the mortgage product.
Moreover, the best mortgage advisor will not only offer you the best advice but will also offer you protection. Seeking the services of a mortgage advisor in Liverpool instead of doing your own research will provide you with more options to make complain if the product turns out unsuitable to you in the future or in the case of miss-selling. The advisor will also have a look at your finances to ensure that you can comfortably afford the mortgage and thus, help you avoid future repayment issues. The broker can also have exclusive offers from different providers and thus, help you find an exclusive offer that you could not get in the market on your own. Furthermore, an experienced mortgage broker Liverpool will also help you fill your mortgage applications and thus, ensure the process is smooth and quick. The mortgage broker Liverpool will also help you calculate all the costs associated with the mortgage beyond the interest rate and thus, help you plan better for the mortgage.
How much mortgage should you take?
Deciding the mortgage that you can afford is the most important step when buying your home as it will determine the home that you can afford as well the repayment plan. Furthermore, with the actual mortgage amount, you will be able to maximise the opportunities available to you. For example, with the help of Liverpool mortgage advisors, you may find that you can afford a bigger mortgage to buy a better home with a different payment structure. It is also necessarily to note that deciding whether you can afford a mortgage takes more than just considering whether you can afford the monthly repayments. Different providers will work differently but most providers will cap the mortgage about four times and a half your income.
In addition to the income, lenders will also factor your monthly payments as well as your personal and living expenses in a process called affordability assessment. This process was brought about by the Financial Conduct Authority in 2014 to help buyers avoid repayment challenges during the mortgage span. The guidelines also require lenders to factor your ability to repay the mortgage in the future in case of an increase in the interest rate or change of the lifestyle. While you can use find online mortgage affordability in websites that offer mortgage advice such as www. Trustedmorgagebrokers.co.uk, it is important that you understand things that lenders will factor when calculating your affordability. You should note that different online calculators will give different figures and thus, it is important that you use more than one calculator.
That said, the lender will consider your basic income, income from your investments, income in the form of financial support and child maintenance from ex-spouses and any other type of income such as commission, overtime, second job and freelance work. However, you will have to provide bank statements and pay slips as evidence of your income. For a self-employed individual, the lender may request bank statements, business accounts and the details of the income tax. The outgoings that will be factored include credit card repayments, insurance premiums, maintenance payments, bills and any other loans or credit agreements. Other factors that the lender will consider include future interest rates increase, life changes such as a career break, and losing your job.
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Types of mortgages
When choosing your mortgage, you should not only focus on the fees and the interest rate but also the type of mortgage you want. The main types of mortgages include the fixed rate and variable rate mortgages but others such as standard variable rate mortgages, discount mortgages, capped rate mortgages, tracker mortgages, and offset mortgages also exist. In the fixed rate mortgage, the interest rates stay the same for a number of years mostly between 2 and 5 years while in the variable rate mortgage, the interest rates can change.
The fixed rate mortgage offers peace of mind knowing that your monthly payments will not change but you will also not benefit if the interest rates fall. The variable rate mortgages are subject to interest rate changes and thus, you can benefit if the rates fall or suffer if the rates increase. When making your decision, you should decide whether you may want to leave the deal early or if you can afford an increase in your payments if the rates increase. When making your decision on the type of the mortgage that you should take, you should not forget to consider the fees for taking them as well as the exit penalties.
Using the services of a mortgage broker Liverpool will not only provide you with advice but can also help you discover mortgage challenges and help you solve them or help you find a product that best suits your situation. For example, if you have a bad credit, the best mortgage advisors Liverpool can help you find a bad credit mortgage or help you quickly fix your credit report as well as provide you with remortgage advice among other challenges that you may experience.ed rates, capped, discounted, first time buyers, bad credit, buy to let, self employed, remortgages.