Are you looking to buy a home for the first time? Unfortunately, they don’t teach us about mortgages in school, so if your knowledge is a little thin, here is a guide to mortgages:
The mortgage is basically a loan used to purchase land or a property. It is a loan that is used as security against a property until the amount has been paid back. When people cannot afford the repayments, the lender has the right to repossess that property and sell it to recoup their money.
This is why it important to ensure you can afford the monthly repayments. Running a household comes with other costs as well, such as bills and maintenance, so budget carefully.
You can apply for a mortgage at a bank or building society. An independent financial advisor or broker can also help you to decide which type of mortgage and lender is best for your circumstances. For Information about mortgages, visit a site like https://www.samconveyancing.co.uk/news/mortgage
When applying for a mortgage, there are normally two stages. The initial stage usually includes a basic look at your finances, what you can afford, and which type of loan would be the best to choose. The second part will involve a more thorough check of the affordability of giving you a mortgage and some evidence of your income and outgoings, for example.
If successful, the lender will give you a ‘binding offer’ and a 7-day period to consider the offer and to make comparisons. You don’t have to have this waiting period if you are in a rush to buy a particular home.