Mortgages - Sorting the fact from the fiction

Lindsay and Sam have just found out they’re expecting their first baby. Although they’re excited at the prospect of starting a family, it’s come as a bit of a surprise and their current living situation is far from ideal. They’ve been staying with Lindsay’s dad in his two-bedroomed terrace for just over a year while they save up a deposit for their first house. The lack of space and privacy has proved challenging to say the least. Adding a baby into the mix seems like a terrible idea.

On the positive side, Lindsay and Sam now have a decent deposit to put down on a house. Despite this, friends have warned the couple they’ve no chance of getting a mortgage due to their working situation. Sam is a self-employed roofer and he’s pretty successful. However, he’s only been working for himself for two years. His friends have told him, he’ll need at least three years of accounts before a lender will go anywhere near him. They say any mortgage the couple can get will be based on Lindsay’s income alone. Lindsay works as a hairdresser and her salary is nowhere near enough to secure the kind of mortgage they’re hoping for.

What can Lindsay and Sam do?

Should they resign themselves to bringing up their baby in Lindsay’s dad’s spare room? Or maybe they should accept that, for now, renting is their only realistic option.

In fact, the best thing Lindsay and Sam can do is stop listening to their friends – no matter how well meaning – and seek help from a qualified mortgage adviser.

But why? What can we tell you that you can’t find out online?

• We know the market

If, like Lindsay and Sam, your needs or circumstances are ‘out of the ordinary’, your options may indeed be more limited than those of other buyers. However, this doesn’t mean you don’t have options. We know the lenders who are willing to consider buyers in your situation and we’ll check you’re likely to meet their specific lending criteria before submitting a formal application. This will save you time and avoid unnecessary searches on your credit file.

• We look beyond the headline rate

An attractive rate may seem like your best bet when choosing a mortgage but you also need to factor in things like fees, loan conditions and the mortgage term. We look beyond the headline rate and can help you understand how the length and type of loan will affect how much you pay in the long term. We’ll also highlight any additional expenses like administration and booking fees, and valuation costs.

• We do the hard work for you

As well as helping you select the right mortgage, we’ll work with you to complete all of the necessary application forms and liaise on your behalf with solicitors, valuers and surveyors. We can also recommend products that provide financial protection should the unexpected happen.

• We’re professionally qualified

Unlike many mortgage sellers working for banks and building societies, we’re fully qualified to advise you on a wide range of lenders and products.

Key takeaways:

• Get help from a professional. Don’t rely on friends’ advice. The market is constantly evolving. Things that may have been true when your friends bought a house may not be true now.
• Look beyond the headline rate when choosing a mortgage deal.
• A mortgage adviser can help with more than just choosing the best deal, they can ensure the whole house-buying process runs as smoothly as possible.