On Thursday 20th April we were joined by Paul Dennington, Mortgage and Financial Market Leader from Barclays along with local branch mortgage advisor Melanie Jones. During the discussion Paul outlined what to consider when buying a property. This included the basics for first time buyers, the different types of mortgages available, fixed and tracker mortgages and the current trends in the market. The importance of savings When setting up a savings account, you need to look at the Terms and Conditions along with its interest rates. Some accounts may have certain Ts and Cs where you may not be able to withdraw a large sum in one go. Government schemes that can help you There are several Government schemes that can assist you when buying a house, including a LISA and the Help to Buy Scheme. A LISA, also known as a Lifetime ISA can only be used to buy your first house or for use later in life (pension). You can put up to four thousand pounds a month in each year and the government will add 25% to your savings, up to a maximum of one thousand pounds a year. Please note the account must be open for over 1 year before any money can be withdrawn. Help to Buy ISA, unfortunately, you can no longer open a help to buy isa, however if you already have one, you may be able to claim financial help from the government to buy your first home. Find out more about the Help to Buy ISA here. Things to consider when purchasing your first house
- Joint Mortgages | This is when you apply to borrow money to buy a home with someone else, like your partner, friend or a relative.
- Shared Ownership | This is when you buy a proportion of the house and rent the other, with the option to buy more shares in the future.
- Location vs Affordability |Way up the pros and cons for location e.g where are your friends, family, and work as you can spend more on a house classed as desirable.
- Always consider eventualities | Did you purchase your house at a reduced cost, you may need to consider this when selling in the future.
- Rent vs Buying | Generally in the long term, owning a property works out cheaper. However, look at what works better for you
- Mortgage Calculators | These give you an idea of what you could receive and what your monthly payments will look like.
- Credit Score | Lenders will look at your credit score when you apply for a mortgage. You can build your credit score by using credit cards (make sure you pay off any debt monthly), and phone contracts. A failed payment can affect your mortgage.
- If you are buying with friends, speak to a legal advisor
When applying for a mortgage be aware you will need:
- Proof of income (3 months worth of pay checks)
- ID (either driving license or Passport)
- Proof that you can pay your deposit
- Proof of address (if you are not on voters roll)
Find out more by reading Barclays First-time buyer guide here. If you would like to discuss mortgages with an advisor, please head to your local Barclays bank to find out more. Thank you Paul Dennington, Melanie Jones and Barclays for joining us for this Co.next event. Find out more about our Co.next programme here.
