Family Law AssociationThe Law Society of Scotland
Glasgow 0141 375 1222
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    MOVING HOME?

    Whether you are selling or buying property we can guide you through step by step.

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    PERSONAL INJURY

    You can rely on our experience to give you the best chance of achieving the best possible outcome.

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    FAMILY LAW

    Our sympathetic family lawyers are here to help guide you.

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WHAT OUR CLIENTS SAY

  • Many thanks for all of your help with our purchase and for making things run as smoothly as they did. We really appreciate it.Andrew Lee and John Struthers
  • I am grateful to the family law department at Jones Whyte for fighting my corner to secure me regular and happy contact with my children following a difficult time in my life David D
  • My compensation claim was fluid and explained to me from start to finish. I would recommend Jones Whyte to anyoneGavin Taylor
  • Brilliant job. Saved my licence for me aswell as my job because if the license went my job went.Kieran M

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22nd July 2019

Looking to buy your first home can be one of the most exciting moments in your life. It is not only an exciting time, but also a big financial commitment. This is why it is crucial to consider various factors and ensure that you have a good understanding of what is involved in the process. This article will explore the various factors you will need to consider before you begin the process of your mortgage application to help you achieve the mortgage that is right for you.  

What is a mortgage?

A mortgage is a loan which is taken out to purchase either a property or a plot of land.  This loan is secured against the property until it is paid off. Most mortgages are taken out for a duration of 25 years but the duration of the loan can be determined based on either the individual financial circumstances of the applicants or the lender’s conditions.

How can my credit score affect my mortgage?

Prior to making any applications for a mortgage, it is a good idea to obtain a copy of your credit report from agencies such as Equifax or Experian. A credit report will allow you to pre-empt  what potential mortgage providers would be able to see when they review your mortgage application.

If your credit rating isn’t ideal,, there are a number of things you can do to boost your credit score. For example, ensuring that you are on the electoral roll in addition to keeping up with any credit payments you might have are good ways to boost your credit score.

If you have a significant amount of debt and you are struggling to keep up with the repayments, this may appear unattractive to a prospective lender. Reducing your debts before making an application for a mortgage will demonstrate that you can manage your money responsibly and can handle monthly repayments.

Deposit

You will need a deposit in order to buy your property or plot of land. The bigger the deposit you have for your property, the more choice of potential mortgage providers you will have. The best interest rates are available to individuals with high deposits. Consequently, the sooner you start saving, the better.

Where can you get a mortgage?

Mortgages are generally available either directly from the bank or from a building society. The product range in respect of mortgages varies and therefore you would be able to compare different mortgages on the market and choose the most suitable option for you.

Buying a home is a high expense, however, spending money on a mortgage broker or a financial adviser can be very beneficial. Financial advisers as well as brokers will have access to mortgages that are not directly offered to individual customers. They will look for mortgage options suitable to your individual circumstances that will fit within your monthly repayment budgets as well as be the lowest repayment rate available.

What is involved in the application process for a mortgage?

There are normally two stages to applying for a mortgage. The initial stage normally involves finding out exactly what you can afford in terms of monthly repayments and the type of mortgage that would suit your individual needs. During this process, the lender or the broker will ask you a series of questions to determine your financial situation and to work out what the best type of product is for you. At this stage, the lender or the broker will also be able to provide you with an indication of how much you will be able to borrow.

During the second stage of the application, the lender or the mortgage broker will initiate your mortgage application. At this point, you will most likely need to provide evidence of your income as well as your monthly expenditure. The impact of the monthly repayments of the mortgage will also be assessed during this stage to ensure you can afford a mortgage. If your mortgage application is accepted, you will get an agreement in principle.

What types of mortgages are there?

There are different types of mortgages but the two main mortgages are fixed rate mortgages and variable rate mortgages.

Fixed rate mortgages

The interest rate during this mortgage loan will stay the same no matter what happens to interest rates. The interest rate is normally fixed for two to five years. This type of mortgage will give you peace of mind and allow you to budget for a mortgage that will have the same monthly repayment rates. This type of mortgage is very appealing as it ensures that you have security during the fixed interest rate period. It is crucial to note that fixed rate mortgages are normally slightly higher for monthly repayments than variable rate mortgages. In addition to this, should the interest rate fall, you will not benefit in any way.

Variable rate mortgages

Variable rate mortgages have rates that can change at any time. This therefore means that your monthly repayments can increase or decrease based on rates. Variable rate mortgages vary and can come in various forms such as standard variable rate, offset mortgages, tracker mortgages as well as others. Before committing to any mortgage, it is essential to compare them all and consider any fees that you might need to pay for taking the mortgage or exit penalties.

When applying for a mortgage, there are various factors which you will need to think about such as deposit, type of mortgage, credit ratings as well as what is involved in the process of the application. Obtaining advice at an early stage can make this process easier and less stressful. To discuss the process of buying your first home, please contact our experienced team of conveyancing solicitors today.

18th July 2019

It is common to come across media articles about celebrities getting a quick divorce andthere is certainly an increased demand for a quick divorce process from people who haven’t made the A-list.

11th July 2019

Often the most important asset that couples will acquire together is a property and usually this matrimonial home is owned either by the couple or by one of them. Where the home is owned by only one of the parties, difficulties in relation to occupancy of the property can sometimes arise when the relationship breaks down. But what rights do you have?