The Mortgage Specialists ‘ First Time Buyer’ guide
1.Work out how much you can afford
Calculate your monthly household income, then calculate your household outgoings to give you an idea of what is an affordable amount to allow for your mortgage payment.
2. Work out how much you can put down as a deposit
You will usually need at least 5% to 10% of the value of the place you want to buy. The higher your deposit, the less borrowed and the less interest you will pay.
3. Find out how much you can borrow
This will vary from lender to lender. Some will offer you 3 x income, some will offer up to 5x income. to be sure, simply ‘get in touch’ for qualified mortgage advice.
Other costs to consider:
- Solicitor’s fees – always enquire with a range of solicitors to get an idea of costs.
- Arrangement fees for your mortgage – can usually be added with most lenders.
- Valuation/survey – The Home Report from the sellers usually takes care of this cost in Scotland
- Land Property Tax – please see https://www.revenue.scot/land-buildings-transaction-tax for more infirmation
- Buildings and contents insurance – cost will depend on cover required and the property in question.
- Protecting your family and your home – Personal Protection for you and your family is essential to avoid you losing your home in the event of illness, injury or unemployment.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE