Mortgage Planning

Buying a home for the first time can be a daunting prospect. Add to this the vast array of mortgage products available from a wide range of sources and you could be left with a high-stress, confusing decision. To help you with making the right decision we have put together five top tips for you.

1. Ensure that you are realistic when working out exactly how much you can afford to spend on your new house. Factor in all expenses in addition to the purchase price, such as conveyancing costs and stamp duty.
2. When buying for the first time, there may be several details in the houses you are looking at, which you may not pick up. Always take an experienced home buyer, such as one of your parents, or a home-owning friend, when looking at property. 
3. If you have been used to living at home with your parents, remember to budget for expenses such as council tax, gas and electricity bills, boiler servicing, and other home repairs.
4. Write down a list of local amenities which are important to you. This may include shops, restaurants, parks, and cinemas. Before making any final decision about where to move to, take a stroll or bike ride around the local area, and note down where the key facilities are.
5. Check to see that broadband or other high-speed internet is available in the street you are moving into. The selling agent should be able to tell you this.

Remortgages can be used for various reasons however, most people simply switch mortgages because it will work out cheaper for them. 

It is worth noting that a remortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower APR, you must take into consideration the facts that:

• The new lender may charge you for valuation and solicitors fees, even if you have already paid these for your mortgage with your current lender.
• You may pay less monthly but check the final repayment date of the mortgage as well.

You may be able to switch your mortgage deal with your current lender, avoiding any unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently. 

When buying a second property to let, you will need to decide whether your primary objective is income or capital growth. In other words, are you looking to make a profit month on month or are you looking to make a profit through increased equity from the second property if it increases in value over time? The decision may affect the type of property you purchase, and the location. 

When you manage a property there are many costs involved in addition to the monthly mortgage repayments. As a guide, you should be aiming to achieve a gross rent of about 135% of the rental property's interest only mortgage repayments in order to cover your costs should anything go wrong.

At Acornmain, we assist you in finding the right product that is suitable for you. We have access to the whole of the market and offer competitive rates to ensure you achieve the lending you require.