Budgeting and getting the right mortgage
Types of mortgages
Before you start looking at properties, you need to know how much you can spend. If you are not buying for 100% cash, you are likely to require a mortgage to buy your property.
Mortgages are loans offered by banks, building societies and other lending institutions, which can take many years to repay. The repayment term is normally determined by the size of the mortgage and what you can afford to repay each month.
Contacting a mortgage consultant
At your earliest opportunity you should take time to speak to one of our professional mortgage consultants who can advise you on a range of products from across the mortgage market. They will work out what the maximum is that you can borrow and which lender is likely to agree to it if required.
They may suggest getting an Agreement in Principle (AIP), where they will approach an appropriate lender with your details to see if they will lend the required money, subject to the usual checks. Credit checks are carried out during this exercise so you must be careful not to negatively affect your credit rating. Your adviser will be able to explain this to you in more detail.
Most importantly, your adviser will assess whether the mortgage you are thinking about is affordable for you using a detailed budget planner. There are many factors that need to be taken into account including your income, any debts you may have (e.g. loans and outstanding credit card balances) and how you manage your finances.
What documentation do I need?
When you find your preferred lender, having your paperwork in order will help the process (this list of documents varies between lenders). Here is a selection of items you will need to provide:
- Evidence of your income
- Proof of ID such as a passport or driving licence
- Proof of address
- Bank statements
- Your latest credit card statements
Get in touch
Speak to a KFH mortgage consultant for more information.