Before you start looking for a house, it is useful to know the maximum mortgage you can get. Find out how much you can borrow. The income standards differ per bank. With some banks, bonus or profit distribution does not count as income. Now the Mortgage Brokers London can help you out in this work.
Own money available
Find out how many own resources you can contribute. Is there any surplus value? Can you get a donation through family or borrow extra money?
Possible extra costs
Take into account the costs of the buyer (about 5%) and the renovation costs. Assume a purchase price that is at least 10% lower than your maximum budget. It is wise to investigate whether you are eligible for the National Mortgage Guarantee (NHG).
Credit facilities (such as a private limit on your checking account or a credit card) and outstanding debts affect the maximum mortgage. If necessary, request your BKR score from the Credit Registration Office (BKR). If you have a backlog coding incorrectly, then protest. Map your debts. Limit the credit limits for bank and credit card.
The mortgage interest
Compare interest rates and conditions of mortgages in advance. If you opt for a fixed-rate period of more than 10 years, the actual interest rate is the discount rate for your maximum loan amount.
Who and what do you need?
Consult:The mortgage advisor
If you have serious plans to buy something, talk to a good mortgage adviser . Try to get more certainty about how much you can borrow and what your monthly payments will be.
The sales broker
Don’t be rushed. It can clause with the broker sufficient space to arrange the mortgage. A funding reservation of 2 to 3 weeks is often too little to get a definitive agreement from the bank.
If you have definitively decided to purchase, have a valuation report made as quickly as possible. The mortgage provider only accepts an appraisal report for the mortgage if you (as the buyer) have given the order yourself. A so-called validated valuation report is required for a mortgage application. This means that the report has been approved by the UK Housing Value Institute (NWWI). You can arrange an appraisal via the Home Owners Association or appraisal.
The term life insurance
Bear in mind that the bank may require a life insurance policy for part of the mortgage (usually the part that exceeds 80% of the home value). Depending on the outcome of the medical questionnaire to be completed, the bank may request a medical examination. If you know the amount to be insured and you expect problems, then take out the term life insurance. The bank may require that you take out a life insurance policy, but you can choose which insurer. You can then link the insurance to your mortgage loan later.
Arrange the papers
Failure or late delivery of the required documents is one of the most important reasons for mortgage applications being delayed. It is the only factor that you can influence yourself. So start on time and act carefully.