All mortgage lenders will request income verification when applying for a mortgage. The amount of documentation required can vary depending on lender.
A solicitor is required to carry out the conveyancing process, and they will need to conduct various searches before your property purchase can take place. Solicitor searches are necessary so that you can find out if there are any issues with your intended property before you assume ownership. They are also required by lenders, who will want to ensure that there’s nothing which could affect the property value before they offer your mortgage.
Quite simply, the more money you can save up, the better.
Your mortgage deposit will generally need to be for at least 5% of the value of the property you are buying. For example, if you wish to buy a home cost £150,000, you will need to have a minimum deposit of £7,500 saved.
How does the interest on a mortgage work?
The amount of interest you will pay on a mortgage depends on the mortgage deal you select. If, for example, you choose a fixed-rate mortgage for a set period of time, then during this period the amount of interest you pay will remain the same every month.
Mortgage types explained
All mortgage types work in the same way: you borrow money to buy a property over a set term, and pay interest on what you owe.
How much you pay back each month is determined not only by how much you have borrowed, and the rate of interest you are paying, but also how long your mortgage term is, and whether you have opted for an interest-only or repayment mortgage.