Top Tips on Buying A Mortgage

Mortgage lending has increased to an estimated £12.6 billion in June. This marks a 16% increase from May but is still lower than June 2010.

According to the Council of Mortgage Lenders this is the highest total of lending since July last year.

View Countrywide’s “Top Ten Mortgages”*

New figures also revealed that mortgage approvals by mutual lenders have increased by 12% compared to those approved in June 2010.

House prices are on the rise as well; they increased by a marginal 0.2% in July, yet this is still 0.4% lower than typical house prices in 2010.

The average house price is now £168,205 compared to the £168,731 of June last year. Despite lower house prices than this time last year and mortgage lending on the increase, figures from Nationwide Building Society found that the volume of property transaction remained at an all time low in recent months.

The demand for homes is sluggish yet this could be down to the fact that only 14% of people are saving for a deposit, despite over three quarters of non-homeowners wanting to own a property.

If you are struggling to find the right mortgage then take a look at our top tips.

Keep Within Your Budget

Be realistic as to what you can afford. Buying your dream home may get your imagination running wild and it can be easy to get carried away. House prices are expensive and it can be difficult for first time buyers in particular to have realistic expectations. Set a realistic budget and goal as to what you can afford.

Take Your Time

The house market at the moment is reasonably stable but ultimately it is a volatile market that fluctuates frequently. It’s worth taking a few years to save for a deposit and not rush into things. Having a larger deposit will certainly help with getting a better mortgage.

Check Your Credit History

It could be well worth looking at your credit history before applying for a mortgage.  Having bad credit could count against you when trying to purchase a property.  If you find any problems or errors on your credit report, get in touch with lenders to iron out any creases.

Understand Different Types of Mortgage

A first time buyer may feel overwhelmed with the various types of mortgages available. There is no ‘one size fits all’ and different mortgages suit different people. Here are just a few:

  1. Fixed rates mortgages – which have a fixed monthly or annual rate.
  2. Variable mortgages – which changes rate in accordance to the base rate.
  3. Current Accounts – which benefit those who have reasonable savings in a current account
  4. Joint Mortgages – Buying a house and sharing the cost
  5. Interest only mortgages – you only pay the interest back, not the capital


* Whilst we do not charge for our advice, please note that there will be a £199 administration fee for residential mortgages and £349 for Buy-to-Let mortgages, which is payable when your mortgage contracts exchange (conclusion of missives in Scotland).

Guest post by MoneyExpert

Posted by: Nicola Severn Categories: Uncategorized Tags: , , , , , Comments Off on Top Tips on Buying A Mortgage

Comments are closed.