What You Need to Know About Mortgages

Thinking about buying your first home or moving to a new one? Understanding how mortgages work is essential to making informed decisions about your future.

At Pure Property Finance, we know the mortgage process can seem complicated. So, here’s a simple guide to some of the biggest questions buyers are asking today.

How Do I Start the Mortgage Process?

Before anything else, take time to get your finances in order. Speaking with a mortgage broker early on can help you find deals that suit your situation – especially if you’re self-employed or have more complex income.

Once you know what you might be able to borrow, you’ll need documents like proof of income, a good credit report, and evidence of your deposit. A larger deposit generally leads to better interest rates, while small deposits often mean higher costs over time.

Can I Get a Mortgage If My Credit Isn’t Perfect?

Having a low credit score doesn’t mean you can’t get a mortgage – but it can limit your options. Specialist lenders may still offer mortgages to buyers with missed payments or other credit issues, but these loans often come with higher interest rates and require a bigger deposit.

If your credit needs work, a broker can help you decide whether you should apply now or wait until your credit improves to get a better deal.

Are Mortgage Rates Likely to Fall?

Interest rates are influenced by the Bank of England’s decisions, but lenders also use market forecasts to set their rates. While recent trends show rates slowly falling, they’re not expected to reach the very low levels we saw a few years ago any time soon.

The right mortgage for you will depend on your circumstances and whether you prefer a fixed or variable rate, so it’s wise to get tailored advice.

How Much Could I Borrow?

Most lenders offer around 4 to 4.5 times your annual income, but your borrowing limit depends on more than just salary. Lenders will look at your expenses, debts, and other financial commitments to check what you can afford without risking missed payments.

A broker can give you a clearer idea of your options based on your full financial picture.

Take the Next Step with Confidence

Mortgages don’t have to be confusing or stressful. With the right advice, you can secure a deal that fits your budget and goals.

At Pure Property Finance, we’re here to help you navigate your mortgage journey from start to finish. Contact us today for personalised guidance and expert support.