I’m new to the mortgage process: What is a mortgage and can I get one?
If you’re new to the home-buying process then you’re probably wondering if you’re eligible for a mortgage. You may also be confused about how mortgages work and what type of mortgage may be the one for you. Mosaic Mortgages has put together a quick guide concerning mortgage eligibility, along with a quick introduction into mortgages and what type of mortgage you can get your hands on.
What exactly is a mortgage?
Put simply, a mortgage is a loan. It’s an agreement to borrow money in order to buy a property; Although you are the legal owner of the property, it is used as security by the lender until the debt is fully repaid and should you fail to make payments on the mortgage then the lender can apply to the Court to repossess the property.
A mortgage is repaid over an agreed time period, plus added interest. Once the borrower has fully repaid the loan, the property is all theirs!
Can I get a mortgage?
Many people are under the misconception that they are not able to get a mortgage for one reason or another. Whether you feel that you aren’t earning enough money or have adverse credit registered against you, Mosaic Mortgages will be able to find a suit mortgage product to suit your individual requirements.
What type of mortgage can I get?
There are so many different types of mortgage products currently on the market, designed to help people with individual circumstances. If you’re completely new to the process then a first-time buyer mortgage may be for you.
If you have a bad credit history or you’ve already applied for a mortgage but you’ve been declined then it may be worth looking into applying for a bad credit mortgage or a failed credit score mortgage.
Before you do anything, you’ll need to have a realistic idea what your income and outgoings are going to be so you are able to work out what you can really afford to borrow. You’ll need to take Council Tax, building and contents insurance and utility bills into consideration – you’ll need to think ahead!
Where can I get a mortgage?
Applying for a mortgage can be a daunting process, especially when you don’t understand everything that’s involved or even where to start. You may want to seek independent mortgage advice from a specialist independent mortgage broker such as Mosaic Mortgages, who can give you the benefit of their advice and full recommendation service.
Why don’t I just use a price comparison site to find my mortgage?
Although price comparison sites can seem beneficial at the time, if you think about it in the long run, you’re only really searching for the ‘cheapest’ rate as opposed to the mortgage product that’s actually right for you. An adviser considers all your circumstances and makes a recommendation based on your specific requirements, as opposed to sourcing just the cheapest rate.