First Time Buyer
Buying a home for the first time can be exciting and exacting in equal measure. To ensure that you are fully prepared for the (frequently rocky) road ahead, you will need to familiarise yourself with the concept.
Here at Regnis Finance, we can help you get the right mortgage to meet your criteria and to ensure the rates offered to you are the best for your purchase.
How Much Can I Borrow?
This is usually calculated by taking three all important factors into account: salary, outgoings and credit history. Outgoing variables such as the number of children or other dependents that you have, outstanding loans, bills, insurance and other such obligations are calculated alongside your salary in order to work out how much you will be able to afford to repay per month.
Other income such as pensions, investments or earnings that fall outside your main salary will also be considered. Credit checks are undertaken to see if you have suffered from bad debts, payment arrears or even bankruptcy in the past. Evidence of such debts will obviously decrease your chances of a loan.
Lenders will also ‘stress test’ your finances to assess whether you could keep up repayments if, for example, interest rates increased or your personal circumstances changed as a result of redundancy, illness or pregnancy.