5 Things to Consider When Securing a Mortgage In 2021

5 Things to Consider When Securing a Mortgage In 2021

Trying to secure a mortgage in 2021 can be a tricky venture to navigate through.  

With the current state of the world and how the housing market as well as every other industry has been ravaged due to the COVID pandemic, it can lead many people to feel insecure to move forward.  

Although, with the right information, securing a mortgage in 2021 can quickly turn from a daunting task to a progressive, freeing move.  

In this article, we will be telling you about 5 things you need to consider if you are thinking about securing a mortgage in 2021. 

 

Different Mortgage Terms and Their Variables  

Different mortgage lengths have different advantages and disadvantages, and based on these variables you are going to have to decide what the best option for you is.  

On mortgages with longer terms such as 25 years or more, the main benefit prospective buyers will receive is that they will pay a much lower cost every month, giving them more free cash.  

Not only is this good for casual spending and freedom, but it also helps hash out any financial difficulties you may face in the future, knowing that you probably won't have to worry about missing mortgage payments. 

On the other hand, short term mortgages have the benefit of allowing you to pay off your property quicker and never have to worry about paying the mortgage again. Although, it will be extremely costly for the few years that you do pay it. 

Taking into consideration the aforementioned points, you need to think about which route is best for you and make sure that decision is correct.  

Be Prepared to Pay a Big Deposit 

Due to the peculiar circumstances the world finds itself in, it is likely that deposits will raise costs significantly. 

Sellers just aren't willing to take the risk of allowing small deposits on their properties because of the unpredictable situation we are in.

 
Because of this, you may have to pay up to a 15% deposit on some homes, so be prepared to save up much longer for a deposit than you usually would have had to. 

 

Take Advantage of the Help to Buy Scheme  

If you are a first-time prospective home owner, the help to buy scheme may just become your new best friend.  

The help to buy scheme is a scheme that has been created to help first-time home buyers by allowing them to get a much lower deposit on a property, usually around 5%. 

Because of the eye-watering prices that homes are selling for right now, the help to buy scheme may just mean the difference between you being able to get a mortgage in 6 months instead of in 3 years.

  

House Prices are Dropping  

Something which will be great news for would-be home owners but detrimental to sellers is the fact that house prices have recently been seen to have fallen, and it is predicted that they will continue to follow this trend.  

This means that if you are looking to buy a house, just by waiting a few months you could potentially save yourself thousands of pounds. In contrast, if you are a property owner looking to sell, it’s a good idea for you to do this as soon as possible.  

property for sale

It’s Going to Be a Struggle 

There's no sugar-coating it; trying to secure a mortgage in 2021 is going to be a struggle.  

With the number of people that are currently looking to buy a home matched with the low availably of homes due to the COVID pandemic, there is high demand, but extremely low supply.  

This means that sellers are going to have all the power. So, just by knowing that heading into your venture, you will have a better idea of how to manage your expectations.  


Conclusion  

Trying to secure a mortgage in such an unpredictable time can be a troublesome task. However, with the right information, it's more than possible.  

At TRPE- The Real Property Expert, we have all the latest listings available for you to view as well as offering our expert advice to help you make the best decision for you. If you are considering buying a property in the UK, feel free to connect with us

Good luck.

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