Moving house is undeniably an exciting time. Whether you are a first-time buyer or tenth, however, it is often considered to be one of the top ten most stressful life events. While it will all be worth it once you’re spending your first night in your new home, that day can feel like it will never come when you’re making the big decisions like which mortgage to apply for. The team at Simpson and Partners are here to help make this process as easy as possible with seven of the most important things to consider before applying for a mortgage, so you can get back to dreaming about life in your perfect property in peace.

1.Your deposit amount

Depending on your financial situation and the price of the property you are looking to buy, most mortgage lenders will be looking for a minimum deposit of between 5% and 15%. While it may be tempting to go for the lowest deposit option available to you, it is important to consider the maximum amount you can afford.

If you have enough savings to comfortably pay a 10% or 15% deposit (or even higher if you can), your upfront costs may be higher, but you will be able to get a much better mortgage rate, meaning your monthly payments will be considerably lower.

2.The type of mortgage you want

There will be many pros and cons to the different types of mortgages that are available to you and some may benefit your individual needs more than others. With a fixed-rate mortgage, you’ll know exactly how much money you’ll need to budget every month; however, you may end up missing out on lower payments if interest rates go down. With a variable mortgage, you’d be able to make the most of these low rates, but you could end up paying even more than anticipated if interest rates happen to go up.

You should also consider how long you want to be tied to a certain mortgage product – if you choose a fixed-rate mortgage, would you be happy to have the same rate for 10 years, or would you rather it was 5, or even 2?

3.Your current monthly outgoings

Your eligibility for a certain size mortgage will not only take into consideration your income but also your existing monthly outgoings, loans or debts that could affect your ability to keep up with your repayments.

No, you don’t need to give up your Netflix subscription or gym membership, however, before making your application it’s worth considering whether there are any credit card payments or overdrafts that you can clear. This will not only increase the amount of money you are able to borrow, but your responsible money management may also be rewarded with a better monthly rate.

4.Which lender offers the best deal

When deciding which lender to use, there’s more to consider than who can offer the best rate. Many banks and building societies will offer other financial incentives such as cashback or a discount on admin fees and stamp duty, so it can pay to weigh up all of your options to understand which lender will provide the best deal in the long run.

5.How a mortgage advisor can help

Understanding the ins and outs of all the different mortgage types, rates, and terms available to you can be pretty daunting, especially if you’re a first-time buyer, so having a mortgage advisor can be the best option to help you get the most out of your money. They’ll have years of insight into industry trends, interest rates and the best lenders to use for your financial situation, so you can rest assured that your mortgage application is in safe hands.

At Simpson and Partners, we offer free and impartial financial advice, including mortgage advice, as part of our estate agent services to help make the entire home buying process quick, easy, and efficient. To find out more, or to make an appointment to speak with our mortgage advisors, get in touch on 01832 731 222 or email