1. First Time Buyer Credit Score
Checking your credit score is just one of the ways in which a Mortgage Lender can assess your suitability for a mortgage. It basically shows how successfully you have handled your credit in the past, according to Money Saving Expert
, poor handling of credit stays on your record for six years, so it is really important to ensure you make your monthly repayments and on time!
There are ways in which you can improve your credit score, simple things like registering on the electoral roll
will help boost your score, it helps to prove you are who you say you are. Living at one address for a long period of time will also help, it's extra peace of mind for Lenders. You can check a comprehensive list of helpful suggestions from Experian
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2. Other Costs for First-Time Buyers
Deposits are Not the Only Thing You Should be Saving For!
Let's face it, for first-time buyers, saving the deposit becomes such an overwhelming commitment that it's so easy to forget about the other costs that you will have to cough up for - even easier if you don't know what they are in the first place!
Alongside your deposit, you will also be expected to pay for the likes of a Mortgage Broker, Home Survey, Conveyancing Fees and Insurance. So, along with putting money away each month for a deposit, it's certainly worthwhile to put funds in a separate place to cover these types of outgoings.
3. The Thing About Deposits...
The 10% May Not Cut It!
Many first-time buyers are conditioned into thinking that once you have the 10% deposit, you're ready to go, however, this is not always the case.
A huge part of assessing your suitability for a mortgage is looking at whether you could actually afford the monthly repayments. A Lender may only be willing to lend you 60% of the house price and with your deposit of just 10%, it's up to you to find the other 30%. That's why visiting a Mortgage Broker before looking for houses is the best way to go, you will get to know exactly what you could afford! No more falling in love with houses that are currently out of your price range!