First-time buyer

Don’t worry, be happy

October 27, 2021
Information published was correct at the time of writing


Buying a new home, and taking out a mortgage to do that, is a major, long-term financial commitment. If the idea of applying for a mortgage makes you feel anxious, you’re not alone. Financial decisions can cause anxiety for some people, and it’s natural to worry about making a long-term commitment that could affect your future wealth. To put your mind at rest, we’ve broken down some of the concerns people commonly have when applying for mortgages and explain how working with a professional mortgage adviser could help.

Many people may mistakenly believe that they’re unable to get a mortgage because they are self-employed. This factor alone is not typically a reason that your mortgage application will be refused. However, you might find it a little more difficult to meet a mortgage provider’s affordability requirements. You’ll need to demonstrate your self-employed income for two or more years, and you may have to provide additional paperwork compared with salaried employees. A professional mortgage adviser can advise you on how much you can afford to borrow and simplify the application process.

Some people may worry that their credit history will make it impossible to get a mortgage. Your credit history indeed plays a role in the approval process, along with your income and other details of your financial circumstances, but your chances of success might be better than you think. In many cases, negative items are removed from your credit report after seven years, so if your financial problems are long ago, you may not need to worry. If you have recent issues, you might not have access to every mortgage on the market, but a professional mortgage adviser can advise on which lenders will work with you.

A common cause of concern when applying for mortgages is that it’s difficult to understand and compare how much you’ll pay with different products. Mortgages advertised at low fees can have hidden costs, or the rate can rise significantly after only a short period. Sometimes it’s worth opting for a higher rate if it’s guaranteed not to rise. To avoid unexpected expenses and get the right deal, you should read through all of the small print and do some calculations to compare the total costs of different mortgages. Your professional mortgage adviser can go through this with you.

Confusing language can add significantly to the stress involved in applying for a mortgage. If you’re not familiar with terms like equity, gross, capital or offset, then the product guides and terms and conditions can be almost impossible to read. A professional mortgage adviser can explain things to you in simple terms.

Many mortgage anxieties can be mitigated by working with an experienced professional mortgage adviser. They can take the stress out of choosing the best rate and offer advice on which mortgage is right for your circumstances. They may also have access to a wide range of mortgages, some of which might not otherwise be available to you. With greater access to a wider market, your professional mortgage adviser may be more likely to find a mortgage that’s right for your circumstances, even if you have a poor credit history or you’re self-employed.

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