26 Sep 2022
When Is the Best Time to Get a Mortgage?
Getting a mortgage and buying a home is a big decision to make. You may be wondering if timing can make a big difference to the process and whether you can save money if you buy at a certain time.
It’s difficult to pin down whether there’s ever a ‘perfect’ time to purchase a house. However, house prices have increasingly risen over the last few years. And with interest rates continuing to rise, you may want to get in there sooner before they go up any further.
However, every individual’s circumstances are different and there are a number of things you should consider before applying for a mortgage.
This blog will run through the main factors that you should think about before making the leap.
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Does the Time of Year Matter?
It’s known that spring is traditionally the best time of the year to buy a property. This is because, usually, you’ll find more houses on the market. The process can sometimes be quicker too because people are more likely to want to get everything complete for the summer.
August can be the quietest time due to holidays, similarly to December, so don’t expect much to happen during these times of the year. Things should pick up nicely in September as people are ready to list their properties off the back of summer.
However, ultimately, the time of the year shouldn’t have much effect on the property process when it comes to prices.
When You Feel Ready
Being ready for a mortgage will look different to everyone. You may feel ready when you have a 10% deposit to put down, whereas another person might want to wait until they have 20% to put towards a new property.
Taking your lifestyle and plans into perspective will also help you decide when you’re likely to be ready for a mortgage. Consider these points before taking the next steps.
What’s Your Salary Like?
Your salary can play a large role in getting accepted for a mortgage. It determines how much you’ll be able to afford per month. So if you aren’t earning much, you should hold out on getting a mortgage once you feel like you’re in a better place financially.
Experts suggest that if your monthly repayments will be over 28% of your gross income, then you shouldn’t be looking at getting a mortgage yet. However, if you have a large down payment this will help reduce your monthly costs.
How is Your Credit Score?
Another big part of getting a good mortgage deal is your credit score. If your score is excellent and your income is stable, there shouldn’t be much of a problem getting a good deal.
However, if your score is low you might want to try to improve your score to get a better deal.
Are You Staying Put?
Buying a property is a commitment, so you need to think about what you have planned for the next few years. Do you want to stay in the same area? Have you dreamed of travelling abroad? Or are you planning to have children or get married?
These types of things will need to be considered before you decide on buying a property. Ideally, you want to be staying in the country for a couple of years and not making any major changes to your lifestyle.
Of course, things change, and if you do find yourself in a different situation you can always sell your home and move somewhere more suited to you.
When You Have a Large Deposit
Having a large deposit is a good indicator that you’re ready to get a mortgage. The larger your deposit, the cheaper your monthly repayments will be and lenders are likely to see you as a more trustworthy applicant.
However, just having a large deposit doesn’t guarantee a smooth mortgage process. You need to prove you’re financially able to make monthly payments. This will be proven through your salary and credit history. Make sure these are up to scratch before applying.
Keep An Eye on The Housing Market
Staying on top of what’s happening in the housing market is a good idea when you’re thinking about getting a mortgage. This can help you understand what you’re currently able to afford and whether it’s a good time to hold off buying a house until the market starts to drop.
However, just because the market may have increased doesn’t automatically mean that it will decrease. And if they do fall, it’s difficult to predict when this could be.
Give Us a Call
A mortgage is likely to be one of the most expensive investments in your life. To make sure you’re getting the best deal possible, it’s necessary to speak to a professional. We specialise in finding the right lender for you, no matter your financial background.
With access to many more lenders than your bank, you know you’ll have a lot more choices when coming to us.
Speak to one of our online mortgage brokers today to get the process started, call on 03300 58 60 58 or see how much you could borrow on our calculator.