Home » Finance » Mortgage

A Short Guide To Applying For Mortgages

May 24, 2008
Applying for a mortgage is not an easy thing to do, especially with the way the property market is working today. It is far more risky to contemplate buying a house of your own let alone actually going out there and buying it. There are however help available for people looking to buy for the first time rather than leaving it to chance that you will eventually be able to afford a house. The first step you would need to take is to compare mortgage rates between lenders.

When you compare mortgage rates, you will be able to get a good idea into how much on average you would be spending to pay off your mortgage. This will help you to calculate how much you would spend on top of the mortgage repayments, such as electricity bills, water and council tax. These are all contributed towards the payment, and can amount to a lot of money per month; therefore, it is vital that you calculate in advance how much you can afford to pay.

Whilst you compare mortgage rates, you will notice that different mortgages have different lengths of time for repayment plans. Depending on how quickly or slowly you will need to repay the mortgage; the interest rates will vary with monger term mortgages being more expensive. This is where you will need to calculate whether you can afford to pay the mortgage off in ten years or twenty-five years (or in some instances, it may take thirty-five years).

Whatever you choose, initially it may seem that paying it off quickly will seem more expensive and your outgoings will be high. However, you must remember to keep track of how much you pay off and calculate your outgoings realistically. As mentioned before, paying off the mortgage is just one milestone; keeping up with the all of the overheads is another milestone. People have made the mistake in jumping in and buying a house without any consideration to the monthly costs.

Before making an application always consult a mortgage advisor, they will help to calculate all of your existing outgoings, along with any debts to pay off against how much you are earning on a monthly basis. Mortgages are usually calculated by, multiplying your annual earnings by three or four; however, in some places you can be eligible for more. Some can apply for graduate mortgages provided they have graduated within five years of applying.

Other types of mortgage deals include paying off the interest only, aptly named as an interest only mortgage. With these kinds of mortgages, there is no guarantee of paying off the entire from the lender, as when you pay off the interest you are also putting money away in an investment savings account. If all goes well you should be able to pay off the mortgage, however, this may not work out as perfectly as you would want.

There are also first time buyers mortgages, in which lenders will allow people with little or no deposit to put down and are looking for a home to buy. It is not recommended for a graduate mortgage, which is a one hundred percent mortgage. This will work out to be more expensive and you will run the risk of falling short of payment each month. It is always best to try to save for a deposit rather than taking a risk such as this.

The key is research, research and more research. You would rather be over prepared than falling into something that you cannot afford in the long run. Spend time to compare mortgage rates so then you can become familiar with the property market.
About the Author
Anna Stenning is an expert for helping people to compare mortgage rates, and researching the property market herself.
Rating:
Please Rate:
(Average: Not rated)
Views: 168
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources