The fact that the low interest
rate has presently made borrowing cheaper coupled with the government's help to
buy scheme does not mean that every mortgage application is automatically
accepted.
In
April 2014, there was a major shift in the UK mortgage industry. The mortgage
market review (MMR) came into play and this means that from henceforth
lenders will have to act responsibly toward their borrowers. This in essence
means lenders will not only take your income into consideration when accessing
your application but will also have to look at your expenditure, so before you
apply it might be wise to take time to overhaul your finances.
You
could start off by paying of debts owed, start exercising discipline and trim
down your expenses. Certainly not every thing you spend money on at the moment
is a need, you can start the journey by planning way ahead of time get an
appointment with a mortgage adviser if need be to help you work things out.
In
all of this remember mortgage is a long time commitment and so might require a
lifestyle change altogether so you don't get stuck right in the middle of the
journey. Never plan your repayments only around the interest you are offered,
rates are dynamic in nature and subject to economic factors which are not
always predictable.
In a
matter of personal opinion if at the moment you can afford a monthly repayment
of £700, take a mortgage with a lower repayment that way should interest rate
rise you don't have to stretch yourself to meet up with monthly repayments and
if things improve in your career you can always re-mortgage and perhaps
by then you have enough equity to help you negotiate a fairer deal.
Rome was
not built in a day, your dream house might be a a little too expensive at the
moment don't stretch yourself for it so you don't end up living a stress
full life. Start small and maybe in 10 years you will have built up enough
equity to buy your dream house
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