These are the burning questions first time buyers want answering
A mortgage expert has answered the 'most Googled questions' from people who are looking to buy their own house for the first time.
Lenders assess factors including age, income, and monthly outgoings to determine if you can pay your mortgage back at both the current and potential future rates. They will also look to see if there are any likely changes to circumstances that could affect your ability to pay the mortgage. The most recent change was in August 2023, when the base rate increased from five percent to 5.25% - the highest since the 2008 financial crash. There is no way to know when interest rates will fall however, it is forecast that rates could increase by a further 0.25 percent or 0.50 percent, potentially peaking at 5.75 percent and then falling over the next five years as inflation eases.
You will then need to check your credit history as lenders use this to find out whether you can manage your debt responsibly and they will do this by using data from a credit reference agency like Equifax and Experian. If you have a lower credit score, you can improve your score by ensuring you pay any credit on time and consider setting up direct debits for payments, and close any credit card accounts that are no longer in use.
One drawback is that if interest rates fall, there will be no change to your monthly repayments. A good broker will search across the market for you, taking into account your situation and checking lender criteria to ensure you get the best deal that suits your circumstances and will qualify for.This final question has 25,050 monthly global searches. Stamp duty, or land transaction tax, is the tax you pay when you purchase a property above a specific value.
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