Buying Your First Home

You just got married and you finally have paid the car off, but realize really quickly that the bachelor pad you were accustomed too isn’t going to suffice for your family to be. Buying your first house is exciting and rewarding and buying the right house also means finding a good mortgage that takes care of you and your family’s financial needs. Finding the right information will help you filter out the brutal estate agents.

Basically what you will be able to afford will be completely up to the lender but normally you can usually borrow a maximum of three and a half times the amount of your income before tax plus one year of income from a person who also lives in the home. So if you make £50,000 per year before tax and have a wife who makes £50,000 you can borrow up to £225,000.

Other lenders base their calculations on affordability factors such as debts like student loans or other existing loans, day care costs. People without children will generally be offered larger loans then those with children.

Some lenders also consider future earnings such as a doctor in training who will become fully qualified in the next couple years. So it is important you let lenders know your exact situation so they can make an accurate proposal for you and give you the best possible deal. Sheengold is based in Kent, United Kingdom and you can talk to one of our mortgage specialists for free on 01634-404183.

Also keep in mind your own tolerance level as it is important not to overdo your limit. This is a 25 year commitment and there is no room for backing out or defaulting so make sure the deal you get is affordable for now and the future. Also remember to factor in current interest rates and how much they could go up in future years. Just one percentage point increase from 5% to 6% can mean thousands of dollars in interest.

To find out how much your new mortgage will cost click quote and apply button below to fill out our online application form or give us a call on 01634-404183.

Need to talk about buying your first home?, we can call you, free call me back.