Securing Your First Mortgage
If you’re looking for a first mortgage in Glasgow then it’s important to remember that most mainstream lenders will simply refuse you a loan unless you have a job. It can seem like an unfair advantage when you’re being asked to pay for work and not benefits, but the majority of finance companies now treat all applicants the same way. You need to have a certain level of earnings in order to be accepted on the mortgage. To secure your first mortgage, it’s worth understanding exactly how the process works.
Factors To Consider When Attaining A Mortgage
There are three main factors that lenders use to assess whether you’re a suitable candidate for your first mortgage in Glasgow. They include your credit rating, employment history and any debts that you might have. Overall the majority of lenders would be happy to offer mortgages to an individual who has been working for at least three years and two years of financial statements or tax returns. But there are still other considerations that will help you when going about securing your first mortgage. Lenders also take into account whether you will be able to afford your mortgage in the future.
You may think that securing a first mortgage in Glasgow is straightforward but in fact there are some subtle nuances that you need to be aware of. One of the main considerations is likely to be whether you’re likely to be approved for a competitive rate of interest. Many lenders offer loans for first-time buyers at attractive rates, but it’s important that you shop around to find the best deal. This is especially important if you’re looking at taking out a mortgage for investment purposes. A specialist broker can search on your behalf with many of the top UK lenders and find you the best mortgage deal that matches your circumstances.
The self-employed can also take advantage of specialist self-cert mortgage brokers. Some lenders don’t even require a specialist broker, so it’s worth enquiring with them as to whether they can recommend a good deal to you. There’s no doubt that the self-employed can put themselves in a strong position financially by securing their own loans. They can then look to borrow more money in the future to expand their business. They will probably be able to get a competitive rate of interest than a person without a professional background, and this means that the repayments will be higher. However, if a mortgage broker is used before obtaining a personal loan, then this could be a great way to cut down on the cost of borrowing.
Another thing to consider is that a number of lenders will offer a loan regardless of how long you’ve been self-employed. If you’re new to the self-employment market and you want to start a new venture, then a lender may be willing to give you a helping hand with the initial outlay. However, this shouldn’t be the only consideration, and some lenders will be less willing to lend money if there’s a history of bad debt.
You may need to pay a certain amount of tax on any interest that you secure. Some lenders may ask you to make a special deposit with their company for this purpose. This will mean that you will have to pay stamp duty on your first mortgage term. It’s worth checking with any potential lenders to find out exactly what the law states regarding stamp duty. You may be able to reduce the amount of tax that you’ll need to pay by making an extra deposit, or by signing up to an agreement with the lender to pay an annual tax.
Ultimately, it is important to remember when you are getting your first mortgage there are plenty of different sources that you can use for advice in order to get more information about what’s involved in the process. The more information and advice that you can get, the easier the process will be for you. Its also important to remember that when you are looking to get an idea of the costs involved that you budget carefully. Budgeting carefully prior to mortgage application will help ensure that your application is more likely to be accepted in the first place.