Here at Mortigo, we deal with first-time buyers daily. And as homeowners ourselves with mortgages (obvs), we’ve decided to jot down the advice we wish we had known before starting our process.
Get your mortgage application in early
It seems idyllic, strolling around houses that you might want to buy, doesn’t it? But in this increasingly competitive seller’s market, it is deemed beneficial to have your mortgage agreement in principle before viewing properties. Whilst it isn’t a legal requirement of Estate agents to have it, it does make you more attractive to sellers. It shows you’re serious, you can afford their property and lastly, you can speed up their process!
Use a mortgage broker to lock in great rates
Now we aren’t just saying this, but a mortgage broker is your guardian angel. Especially at the moment, rates are changing on a daily basis, but by enlisting the help of a broker, will allow you to secure the most suitable deal for you and lock it in (for a short period).
Don’t forget the extra fees you may not have thought of
Whilst we are transparent with our service fees (which are 100% worth it), there are some costs you may not have given much thought. Valuation costs, house survey fees, moving costs and conveyance costs; legal fees, money transfer fees, land registry fees and searches by solicitors). For the most part, these fees will increase with the value of the property. According to Which?, these costs could range from £1330- £6,140 (2021 figures). For more information on the breakdown of these costs, click here.
|Type of cost||Estimated cost|
|Mortgage fees and charges a||£0 – £1,500|
|Valuation fees b||£0 – £700|
|Property survey costs c||£400 – £1,500|
|Conveyancing fees d||£780 – £940|
|Removals costs e||£50 – £1,500|
|TOTAL||£1,330 – £6,140|
a) Moneyfacts, October 2019 b) Based on 10 of the 15 largest mortgage lenders according to UK Finance (July 2019) that charge valuation fees c) co.uk, October 2018 d) Based on an average of five quotes obtained from conveyancingcalculator.co.uk in July 2019 for a property purchase in England e) Based on van hire quotes from Hertz and removals quotes from AnyVan.com in August 2019 for a move to an equal-sized property within nine miles. Taken from the Which? Website.
And whilst we’re on the topic of extra costs, we do hope you’re aware of stamp duty costs.
Use a mortgage broker who is tech-savvy
As we’ve already mentioned, being ahead of the crowds is a benefit for a buyer. So be sure to speed up processes by using a digital-savvy mortgage broker (like us). Our online services allow you to complete a lot of the lengthy paperwork and upload documentation. What’s more, we won’t shift timelines because we aren’t able to schedule a face to face meeting, hey, we’re zoom meeting experts now!
Don’t be afraid to negotiate & ask questions
Whilst it’s a USP of Mortigo’s service that we don’t use jargon unnecessarily, it isn’t an industry standard. Buying a house is one of the biggest financial commitments you’ll ever make so don’t be afraid to ask questions if you don’t understand. By working closely with first-time buyers, we build a relationship that we hope will lessen the overwhelmingness of the process. Within this tip, we also suggest trying to negotiate – you’ve seen the fees above, buying a house is expensive so it’s always worth trying to reduce costs where possible – don’t ask don’t get!
If you are looking for your first home, feel free to reach out with any questions you may have.