Why should first-time buyers use a mortgage adviser?

Shirley Mushet, Independent Mortgage Adviser at ESPC Mortgages, gives her tips for buyers at the start of their property journey.

As a first-time buyer, the mortgage process becomes smoother if you do some ‘life admin’ prior to thinking about a mortgage. Lenders need to know who you are, therefore being able to identify you is very important, so there’s a bit of paperwork involved and evidence required.

Make sure your passport is in date and update your driving licence, wage slips, bank statements and credit agreements (for example, credit cards, loans or car finance) with the correct name and address. Making sure you’re on the electoral roll also helps. They sound like simple things, but you’d be surprised how many people don’t keep these key details up to date!

Lenders want to know that you can manage your finances before they’ll lend. Credit agencies give them the equivalent of your financial CV – the credit report. You should be aware that your credit score doesn’t always reflect what a lender will consider.

Some things to consider:

• Check your credit report, and flag any errors with the provider immediately.
• Keep payments up to date.
• No credit isn’t necessarily good credit – lenders want to know that you can manage credit. Getting a credit card, putting a small amount onto it and paying this off every month is a good idea.
• Don’t have too much available credit (i.e. big credit limits), as this can cause a lender concern.
• Keep out of your overdraft, as some lenders view this as a lack of financial resilience and a risk to their loan.

Engaging with an ESPC mortgage adviser can help you keep on top of the dynamic world of mortgages and help you get the most competitive product for your circumstances, potentially saving you thousands of pounds. We have access to exclusive lenders and products, so you might get more choice than you would get if you decided to go it alone.

Engage with us early, even before you have started your search for a property, as we can work through affordability, especially how lenders view different income types. Following on from this, we can consider what your monthly mortgage payments might look like. This helps you understand the price range of the properties that you want to consider.

We can explain what the different mortgage products are and explore if they might be appropriate for you. We are seeing that discounted and tracker rate products are prominent with lenders. We can explain how these work, their risks and whether or not they are the right products for you.

Another factor to consider before securing a mortgage is the type of property you are looking to purchase as this can impact the amount the lender is willing to give you. For example, a lot of lenders limit the percentage you can borrow.  At ESPC Mortgages, we can help guide you on how a lender will view your property and how that will affect your mortgage options.

Once you have found your successful property, we apply for the mortgage on your behalf taking the worry and stress out of this part of the process. ESPC Mortgages are used to dealing with lenders’ underwriter queries and can tackle this for you, making your application process as efficient as possible.

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.