Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Shutterstock/lithian
daft mortgage advice

How do I start looking for a mortgage?

The first step can seem the hardest. So what should it be?

BEFORE YOU EVEN think about your application, the first step is to carry out a thorough inventory of your finances. Figure out how much you have on hand as a potential deposit and how much you are saving each month.

You’ll also need a rough idea of the value of house you’re aiming to buy (bearing in mind that you can typically borrow no more than three-and-a-half times your income). All this will save you time when you start talking to a lender.

“You need to check if you have the income ability for a monthly mortgage payment and if you have enough for a deposit. Because if you have neither of those there’s no point looking for a mortgage just yet,” says John Lowe of the Money Doctor.

Once you’re happy with your financial situation, it’s time to approach a bank or credit union, or you could go to a broker or financial advisor who will be able to deal with a lender on your behalf.

At this stage it’s a good idea to shop around and find a mortgage and a rate that will work for you. You don’t necessarily need to stick to your usual bank, as you can typically get a mortgage from any lender without being an existing customer.

“There used to be a time where you had to build up your deposit with a lender, but that’s not necessary any longer. You can walk into any bank now or go to a financial advisor who will look at all the providers for you,” Lowe adds.

Your Voice
Readers Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.

    Leave a commentcancel