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It can be daunting considering a mortgage as a first-time buyer. How do you know which one is the best investment for you? Finding the best mortgage rates as a first-time buyer is essential, especially for the first few years in your home. Here are some tips for finding the best mortgage rates for your new place.
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Find A Mortgage Broker With Low Rates
A mortgage broker is the easiest way of cutting through the confusion when applying for a mortgage. You’re effectively hiring someone to talk through the process with you. While you can go to a company directly and apply for a mortgage with them, a mortgage broker will arrange the mortgage process on your behalf, in exchange for a small fee, or commission directly from the mortgage company. A mortgage broker with low rates is ideal for a first-time buyer. Mortgage brokers such as Altrua offer low rates, but additionally, ensure that the small print won’t cost you more money further down the line.
Make Use Of Initiatives
Many local or national governments offer initiatives to help first-time buyers secure their homes. It might be money reimbursed for your solicitor’s fees or even money off your deposit after completion. Do some research and see if there’s anything to help save money for first-time buyers in your area. You should also talk to your bank to see if they offer any initiatives or preferential mortgage rates. Not all banks do this, but some may offer better rates if you already have an account set up.
Boost Your Credit Score
The best mortgage rates are often offered to those with the highest deposit, making sense as you have less to pay back overall. However, you’ll also boost your borrowing power and rates if you have a good credit score. Check your credit rating using a site like Experian, and fix any incorrect information (if someone has the same name as you, there is a slight chance a debt might be sitting under your credit history). You can boost your credit score by closing unused credit cards, paying bills on time, and sticking to budgets each month to show how much disposable income you have.
It’s essential to shop around to see which lenders will offer you the best rates. Having access to a mortgage broker with the whole market is the easiest way to obtain a list of options that suit you, without physically having to approach every lender. Your mortgage broker should help you assess the best rates by seeing over how many years you can have your mortgage, and whether there are any initial fixed-term rates for first-time buyers for the first few years of ownership.
Improving your borrowing power and talking to a mortgage broker is the best way to get the best mortgage rates for first-time buyers. It’s in the interest of the mortgage broker to make sure you get a mortgage, so they should be able to advise a realistic and affordable mortgage for you.