Low mortgage rates make now the time to buy in Exeter
Barratt Homes has committed to helping as many people as possible in Exeter find their dream home and says that record low interest rates reinforce their belief that now is the perfect time to make that move.
It says there are still a number of misconceptions and a level of confusion around the house buying process which is hampering the aspirations of potential homebuyers.
Research from the five star housebuilder revealed that many people overestimate the deposit needed, the length of time it takes to complete a purchase and the amount of financial information they need to provide.
Adrian MacDiarmid, head of mortgage lender relations at Barratt Developments said that research from the five star housebuilder revealed that that consumer attitudes have not kept up with the fact that the mortgage market has recovered strongly.
“Mortgage rates are at an all-time low and although we know that they will increase at some point, buyers who are concerned about how this might affect them should consider some of the fixed rate schemes available that will give them the security of knowing that their payments will stay the same for the initial period of the mortgage,’’ said Adrian.
“We believe that now is a great time to consider buying a home. From the Help to Buy scheme to our Deposit Boost programme, there are lots of ways to get onto the property ladder with a mortgage that you’re comfortable with.
“We have lots of advice available to help buyers navigate the mortgage process - from online tools to our panel of recommended independent mortgage advisers.”
Top tips from Barratt Homes on applying for a mortgage:
Get Organised
Getting organised before you talk to an independent mortgage adviser can save you both time and hassle later on down the line
Make sure you locate important documents like payslips, and your P60 – proof of bonuses or overtime can also work in your favour
Lenders may need to see proof of bank statements and, even if they don’t, having these to hand will assist in establishing your spending patterns to help prove affordability
Other documents that you should have access to include your passport/driving licence for proof of identity, and recent bank statements or utility bills for proof of residence
Understand Your Limits
If you have existing credit such as credit cards and loans, you must ensure that you keep up with the minimum repayments and do not get too close to your limits. Ideally repay the cards in full each month
The Family Connection
Details of your family’s credit score are not kept on your file, as long as you don’t have any joint finances. If you do, you are likely to be co-scored and this could stop you securing a mortgage
If a family member, partner or housemate has a poor credit score, keep your finances rigidly separate. This includes joint accounts and bills under both names
It’s All in Your History
You may not realise, but as many as 1 in 10 house hunters looking to buy a home have no credit history. They are often viewed as less credible as lenders have no information to base their decision on
Of course you should never get in to debt to build up a credit history but by taking out a credit card and using it regularly (ensuring you pay off the bill at the end of the month with a direct debit) you will begin to build a credit history
Get On the Electoral Roll
You should try to show lenders that you have a ‘stable’ lifestyle, for example you are in full-time employment and live at a fixed address. If you aren’t already, register for the electoral roll as you’re unlikely to get credit without it
Be Consistent and Double Check
It sounds simple, but one slip up on the application form could scupper your chances for securing a mortgage. This could be from a simple mistake, such as small inconsistencies in your salary details or using a slightly different name from the official version on your passport , for example
One at a time
Also bear in mind that submitting numerous applications in a short space of time could have a negative effect as lenders may worry about why you have been rejected previously. Talking to an independent mortgage adviser gives you the best chance of applying to the lender most suited to your circumstances first time
For more information on mortgages and how Barratt Homes can help you buy your first home visit: barratthomes.co.uk/Offers/