Buying a Home
There are many factors to take into consideration before you buy a property. At Rainstone Money, we have identified the key ‘things’ that you will need to know before you purchase your home.
How much can you borrow?
Determining how much you can borrow is mainly based on your income that you receive from your employment. The amount being borrowed from the lender can be increased if there are two applicants, if you have a second job or if you have any other form of annual income such as tax credits or rental income. The more income the applicants have the more the lender will borrow to them. However, the amount being borrowed does vary from lender to lender and you will have to take into account your credit commitments as this will affect the amount a lender will borrow to you. It is important to consider your monthly outgoings before you get a mortgage as well in order to make your monthly mortgage payments affordable and you should also take into account any changes in your income or expenditure both now and in the future. As you will have to be able to afford your mortgages as missed monthly mortgage payments could lead to the repossession of your home. Our Mortgage calculator lets you work out how much you can borrow in an easy and simple manner.
How much will your mortgage cost you?
Your Mortgage will likely be your biggest monthly expenditure so it is imperative that you know how much your mortgage will cost you monthly. You will want to make sure that your mortgage is affordable and that you can keep up with your monthly payments as failure to do so can have some dire consequences such as bad credit and even repossession of your home. Our Mortgage Calculator is a quick and easy way to work out how much your monthly payments may be in order for you to work out if it is affordable to you and whether it meets your circumstances. The Mortgage calculator quantify your monthly mortgage payments based on the details that you provide so make sure they are entered correctly or you may receive wrong information. If you do have any questions do not hesitate to contact Rainstone Money for fee-free advice.
Before buying a property you will need to have a deposit in place (a sum of money paid into a bank or building society account).
How Much deposit will you need to have for your deposit?
There are some lenders that allow 100% mortgages although in this day and age it is almost impossible to get one. You will generally need to have a minimum of a 5% of the property value for your deposit for example if you are looking to buy a property for £100000 you will need to have a deposit of £5000. However the larger the deposit that you the better the interest rate deal you will be applicable for.
Our Rainstone Money will advise you on the best rates available on the mortgage market depending on the am0ount of deposit that you have. Home Buyers who have bigger deposits like 15% and 20% are now applicable for some great deals that are now available especially with interest rate being at a record low. However for First Time Buyers having that big of a deposit can be quite difficult which is why the government has introduced chemes to help Firt time buyers. These are called Help to Buy schemes, the government will aide you in buying your first home. Our Brokers will guide you to the best deals available to your personal circumstances.