Will I ever be able to afford a mortgage?

*For the most up to date information on this topic, please see: I want to buy my first home but will I get a mortgage?

I’d love to own a house but I’m worried I’ll never be able to get a mortgage. Will I?

The answer is yes – depending on the circumstances. The most important thing to understand is that ‘mortgage’ is another term for a loan to buy a property. If you can prove you’ve got a regular income, a deposit of at least ten per cent and a positive credit rating, then you won’t find it too difficult.

So, it’s easy then?

Let’s not get carried away. Arranging a mortgage can take a considerable amount of time, depending on personal circumstances, and how long it takes for you to find that perfect home. That’s why lots of people choose to get expert support from an independent mortgage adviser such as us at Charles Cameron – in order to guide them through the process.

 Where do I start?

When you meet with your mortgage advisor, they’ll help you understand how you can get prepared before you apply for a mortgage. The first step is to register for the electoral roll (if you’re not on there already) and make sure all the services you pay for (phone, utilities etc.) are registered to your correct address. Just one unpaid bill from an old address or a previous relationship can severely impact your credit rating.

How much will I be able to borrow?

This depends on how big your deposit is, and how much you (and your partner) are earning: a mortgage provider will typically offer you between three and four times your joint income, with many setting the cap at around four-and-a-half times. However, the lender will want to see whether you can afford the monthly payments, too, so the adviser and the lender will assess your outgoings, such as bills and maintenance payments, as well as general living costs. They’ll also ‘stress test’ your finances to see how you’d handle a major life change like losing your job or having a child.

Couldn’t I just get a decent mortgage deal myself?

You could, but at Charles Cameron our advisors have years of experience in the mortgage market. They’ll be able to search for the best mortgage product possible for your individual circumstances. While buyers are sometimes impressed by low-interest rates, these products sometimes have higher fees resulting in a higher overall cost. At Charles Cameron we’d assess your requirements and preferences and discuss a range of mortgage types and terms with you and then provide you with a recommendation on which lender and product is most suitable for you. We offer unbiased advice on what will work for you from all lenders in the market.

What if I’m self-employed?

We understand the unique difficulties that come with applying for a mortgage if you’re self-employed. This certainly doesn’t mean it’s impossible to get a great mortgage product – but it does mean you’ll need at least two years of accounts before you start.