choose to either switch to a tracker mortgage or to take out another fixed-rate term. Fixed rate mortgages are the most popular currently available. Tracker mortgages: These follow the Bank of England Base rate of interest, which means your repayments are variable and will go up and down over time.


Offset Mortgages: Some lenders will allow you to link your savings and current accounts to your mortgage so that you only pay interest on the difference. You still make a mortgage every month, but your savings act as an ‘overpayment’ which can help to clear your mortgage earlier.


Don’t forget that you don’t just need money for the house…


Remember it’s not just savings for your deposit that you will require, buying a house will bring additional costs too: Property search (conveyancing search): when you have found


a property you want to make an offer on, it is sensible to have a ‘search’ done to check the condition of the building or for any legal or financial terms attached to the building you might not be aware of. Most lenders will insist at least a basic search is conducted before they will hand over any money.


Mortgage arrangement fees: most lenders will charge a fee to set up the mortgage, typically around £1,000, but do check with your lender before you commit.


Solicitors fees: you will need to use a solicitor (or licensed conveyancer) to ensure the sale of your home is completed legally. They can also help you conduct a search. Legal fees can cost up to £1,500 (VAT will be extra) depending on the size of the property you are buying. Again, do ask for a quote first. Home and contents insurance: it will be a condition of your mortgage that you take out insurance on your property,


10 top tips to getting a mortgage Save to get a big deposit


Avoid surprises by knowing your credit score


Pay off unsecured debts and close any unused accounts


Avoid any evidence of regular gambling, too many unsecured loans or County Court judgements


Avoid properties that Banks may be reluctant to lend on. e.g. flats over commercial shops or houses built by unconventional means.


Ensure you have all relevant documents ready for checking (Passport, Driver’s License, utility bills, three months of bank statements, evidence of employment and salary)


Know the type of mortgage you require


Ensure you are on the electoral roll


Ask both your bank and an Independent mortgage broker for a competitive quote


Most importantly, make sure you can afford the mortgage payments


Make The Future Yours! Issue 2 49


so that any damage can be repaired. Whether you choose to take insurance on your contents as well is up to you but it’s probably a good idea. Many lenders will offer combined home and contents insurance at a slightly better rate than buying them separately but do check the small print to see that you will have cover for everything you need. Removal costs: if you are moving from one house to another, you may want to pay professional removers to do all the heavy lifting for you (literally!). Many removals companies also offer a professional packing service too. Do shop around but expect to pay up to £900 for removals for an average house and up to £300 for packing. If you are a first-time buyer and don’t have too many belongings or furniture, it may be cheaper to ask your friends and family to help you move and buy them dinner to say thanks! Furniture/white goods: of course, if you are a first-time buyer, you may well need to factor in buying a cooker, a fridge, a sofa and everything else you need to furnish your new home too.


*statistics correct as of May 2020


Homes of Hampshire are a small and independent Estate Agent offering a local bespoke service, but also part of a huge network through Keller Williams offering clients the best of both worlds. Founded by husband and wife team, Peter and Jane Johnson, Peter is also a qualified independent mortgage consultant.


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