You can either go through a broker, who will compare different deals, or direct to a lender – we’ll be looking at the pros and cons of each option in our guide to getting a first mortgage.
There are certain criteria that lenders take into account when they calculate how much you can borrow, but even if your salary isn’t enough to qualify for a loan on the house you want to buy, there are ways to make yourself more mortgage-friendly.
Don’t forget the extras
There are many added costs entailed when buying a house, aside from its outright price. Make sure to budget for things such as conveyancing, legal fees, home insurance and stamp duty if you are eligible to pay it.
The Government has announced that a temporary break for home buyers from having to pay the tax that will last until March 31 2021. Anyone buying a property worth less than £500,000 will pay nothing.
Even under normal circumstances most first-time buyers do not pay stamp duty.
That is because people buying a first home in England or Northern Ireland pay no tax on homes worth up to £300,000. For properties up to the value of £500,000, you only pay stamp duty (at a rate of 5 per cent) on the amount over £300,000. Those buying a property worth over £500,000 do not qualify for first-time buyer relief and will pay stamp duty at the standard rate after March 31.