First Time Buyers: Mortgage Advice
If you’re thinking about purchasing property in France for the first time, it can be a daunting process. Sorting out a mortgage in a foreign country may be a prospect that fills you with dread. Mercifully, there are Europe-wide banks, such as Santander, who can help you (click the link to see their mortgage payment calculators and find out what you can afford – you might be pleasantly surprised by what you can get for your money on the continent!).
But before you even commit to borrowing money for a new house, there are some key things to think about…
Budget. Get a solid notion of your budget before you start. Know your upper limit, and have it seared into your mind before embarking on a house-hunt. Armed with this knowledge, you’ll have more confidence. Use the aforementioned mortgage calculator to work out how much you can borrow. Think about how big a deposit you can put down and how much you’ll need to have left in order to cover stamp duty, legal fees, removals costs, and all the other small administrative tasks you have to pay for. If your budget seems tight, then try to cut your current costs or pay off some debt. Buying a new home can be a great excuse to closely study your finances.
Deposit. Mortgage lenders are more cautious than ever. The size of your deposit is key. Maximise it by saving up some money – this takes some forward planning. Ask your family if they can help by lending you the deposit, buying with you or being your guarantor. It could make all the difference. Consider buying with a friend (if it’s someone you’re close to and trust, it can make a lot of sense). If you work in certain sectors, government schemes can assist with home-buying – public sector workers with certain requirements are eligible for these ‘key worker’ schemes. Find out if you are a key worker here.
Mortgage. Different mortgages suit different people. Fixed or variable rate, short or long term, interest only or repayment. Whatever your opt for, remember that your first mortgage is a major undertaking and a big financial commitment so it’s vital that you seek advice and get the right product for you. If you’re worried about repayments, a fixed rate mortgage could be the way to go.
Image: ddpavumba FreeDigitalPhotos.net. Article courtesy of third party
