Five Steps To Your Next Mortgage
The journey to the getting the right mortgage may seem complex and confusing but as local mortgage brokers in Brighton, we are here to make the process a simple as possible.
The following steps explain just what you need to have in place to get a mortgage that suits your lifestyle.
How much is your home worth?
Knowing how much your home is worth forms a crucial part of any lenders calculations as to how much money they are willing to lend to you, we call this the LTV (Loan to Value) percentage.
Example: If your house is worth £200,000 and you want to borrow £150,000 then your LTV is 75%. The maximum a lender will offer is 95% LTV.
Note: the higher the LTV the higher the interest rate will be. So a 95% LTV may cost around 5.5%, compared with a 60% LTV would cost more like 4.7% a year in interest
To find out how much your home is worth, head over to www.zoopla.co.uk to find out. Note:
Note: You are now departing from the regulatory site of Sussex Mortgages. Neither Sussex Mortgages nor PRIMIS Mortgage Network is responsible for the accuracy of the information contained within the linked site.
The size of your deposit or equity in your home?
Purchase
If you are a first-time buyer, then the size of your deposit is key. A minimum of 5% of the cost of the property is needed but 10% to 15% is a better amount to access a greater range of mortgages.
Remortgage
If you need to remortgage your property, then check with your current lender how much money is left to pay and from that we can estimate how much equity you may be able to release.
How much do you earn?
If you are employed then tell us your annual gross salary. Include any bonuses or overtime. If you are self-employed, then this is the NET Income that you paid tax on. This is called a SA302, or Tax Calculation/Computation
Include any additional income like child benefit, maintenance, universal credit and tax credits.
As a general rule most lenders will offer around 4.5 times your income. If your income is grater than £80,000, some lenders do offer 5 times income.
Any credit commitments or issues?
We all have moments in our lives where we did not manage to pay a utility bill or missed a payment on a mortgage. If that happened to you then let us know, as you can still borrow with a low credit score as long as the problem was more than a year ago.
Include any credit card debt, personal loan or car payment commitments you may have.
To see what each of the 4 major credit agencies (Experian, Equifax, Transunion and Crediva), say about you click on over to CheckMyFile for free credit report.
Note: The more information we have about your situation, the better we can serve you in finding the best mortgage for your lifestyle.
Book your mortgage review.
Now you have the details of your property value, current loan amount and your income details to hand, it is time to book a call back from us at a time that suits you.
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