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MORTGAGES EXPLAINED 
(What are they, how can I get one and what I need to jump on the property ladder)
THREAD BELOW
(What are they, how can I get one and what I need to jump on the property ladder)
THREAD BELOW
Mortgages seem like a word that many of us have heard but few of us know much about. Can I get one now? Today? Isnât deposit money enough to qualify?
Donât know the answers? Keep reading!
Donât know the answers? Keep reading!
JUST A NOTE: in this thread, Iâm going to talk about mortgages on a more broader scale
If youâd like me to break down the different types of mortgages, let me know and Iâll do another thread!
If youâd like me to break down the different types of mortgages, let me know and Iâll do another thread!
MORTGAGES - a loan from a bank to purchase property by which the property is used as collateral
In simple terms, the bank lends you money to purchase your property HOWEVER, they are the legal owners of it until your debt is paid IN FULL
In simple terms, the bank lends you money to purchase your property HOWEVER, they are the legal owners of it until your debt is paid IN FULL
What does that actually mean, isnât the property mine?
Well technically no. The bank has lent you the money in exchange for being the owner until youâve returned every dime of that loan to them
If you begin to forfeit payments then they can repossess the property as itâs theirs
Well technically no. The bank has lent you the money in exchange for being the owner until youâve returned every dime of that loan to them
If you begin to forfeit payments then they can repossess the property as itâs theirs
How do I qualify for one?
Whether or not you qualify for a mortgage and how much that is for depends on a few factors:
⢠Deposit amount
⢠Income
⢠Level of existing debt
⢠Credit score
If any one of these factors arenât up to scratch, it could work against you!
Whether or not you qualify for a mortgage and how much that is for depends on a few factors:
⢠Deposit amount
⢠Income
⢠Level of existing debt
⢠Credit score
If any one of these factors arenât up to scratch, it could work against you!
How does a mortgage work?
Usually youâll put down a cash deposit for property which is typically between 5 - 10% of the property price
The remainder is paid back with interest through the medium of a mortgage over an agreed, fixed number of months
Usually youâll put down a cash deposit for property which is typically between 5 - 10% of the property price
The remainder is paid back with interest through the medium of a mortgage over an agreed, fixed number of months
If youâre a Londoner like me then youâll know that it is almost impossible for any of us to become home owners as prices are at an all time high
There are government schemes to help first time buyers purchase a home, have a read of my thread below! https://twitter.com/ikeeyah_/status/1178401060853075971?s=21
There are government schemes to help first time buyers purchase a home, have a read of my thread below! https://twitter.com/ikeeyah_/status/1178401060853075971?s=21
If youâve got your head in the game and have almost/saved up your deposit amount, happy day! Time to go house shopping!
But wait, how much will the bank actually lend me?
But wait, how much will the bank actually lend me?
With mortgages, the bank typically lends 4x/5x your annual salary
EXPLAINED:
If you have an annual salary of ÂŁ20,000, the bank will lend you a maximum of ÂŁ100,000 towards your property
If youâve saved up a ÂŁ15k deposit and the property value is 150k, we have a problem
EXPLAINED:
If you have an annual salary of ÂŁ20,000, the bank will lend you a maximum of ÂŁ100,000 towards your property
If youâve saved up a ÂŁ15k deposit and the property value is 150k, we have a problem
The importance of having a sufficient deposit amount is stressed often but I canât stress enough how important your income is!
I can see some of the cogs in your brains turning thinking you can âembellishâ your annual incomes a little bit, am I right?
I can see some of the cogs in your brains turning thinking you can âembellishâ your annual incomes a little bit, am I right?
WRONG! You have to provide a full financial history for the bank!
Bills, payslips, account balances, debts, all the good stuff!
If youâre thinking moving from part time to full time employment, the bank needs to see at least 3 months worth of payslips
Bills, payslips, account balances, debts, all the good stuff!
If youâre thinking moving from part time to full time employment, the bank needs to see at least 3 months worth of payslips
The bank doesnât do these checks because they want to poke a hole in your dreams of becoming a homeowner by 22, they are giving you a substantial loan amount and need to make sure that youâre good for it!
Want to check if youâre good for a mortgage?
Loads of banks offer their own types of calculators but Barclays have one so you can figure out how much youâd be able to borrow based on your income and spending
(Itâll come up with a google search)
Loads of banks offer their own types of calculators but Barclays have one so you can figure out how much youâd be able to borrow based on your income and spending
(Itâll come up with a google search)
If you need me to make a thread going into detail about the different types of mortgages then let me know
If you have anything else to add then please do
Message me if you have any questions either here or on Instagram - @ikeeyah
If you have anything else to add then please do
Message me if you have any questions either here or on Instagram - @ikeeyah
