1.1M UK residents are seeking mortgage advice – expert offers top tips to homebuyers

1.1m people in the UK are seeking mortgage advice online, research from 5 star Homebuilder Barratt Developments Yorkshire West has revealed. Amid the rise in the cost of living, prospective homebuyers are concerned about how the financial climate will impact their plans to buy a new home.

Research conducted by the country’s largest homebuilder shows that searches for ‘mortgages’ have increased by over two thirds (70%) since August 2022.

Ahead of Talk Money Week (7th – 11th November) Adrian MacDiarmid, Head of Mortgage Lender Relations at Barratt Homes is offering guidance to those who are looking to purchase a new home and has shared four financial planning tools that can help buyers to purchase their first home or to climb up the property ladder.

Beat your bills

The cost of living has significantly impacted many households, including bills and utilities. Choosing an A or B energy-efficient property will cut your running costs and therefore increase what you might be able to afford to pay on your mortgage. Some lenders may even lend you more as a result.

“A recent report by the Home Builders’ Federation (HBF) has revealed owners of new builds can save up to £2,600 a year on their energy costs. This is significant for home buyers, especially during the energy crisis, as it will allow them to save up to thousands of pounds each year as a result of reduced running costs.” adds Adrian.

Make the most of buying schemes

The Government-backed Help to Buy scheme may have ended, but there are still a range of schemes available that are designed to help people to get on to the property ladder.

Deposit Unlock enables first time buyers and existing homeowners to purchase a new build property with a 5% deposit, which can give them access to better mortgage rates.

Part Exchange is another popular scheme offered by homebuilders to help existing homeowners to secure their dream home. The scheme sees the homebuilder purchase the consumer’s existing property at fair market value, so they can buy their new home faster and easier by removing a chain and estate agent fees.

“There are lots of lenders still looking to support people buying a home and there are many options for different circumstances. Getting advice early is good because you will be able to see what options are available to you at the time.”

“It’s also worth checking the incentives that are available, as there are fantastic offers that can see buyers saving thousands.” Adrian highlights.

Put together a budget planner

The first action to take is to sit down and work out your income and outgoings. To identify areas where you could be saving money, it’s important to understand what you’re spending your money on, without compromising your lifestyle.

“A budget planner takes your total monthly income and expenditures and is a great practical tool to help identify where you can make savings, which gives you an idea of what you can afford each month.” says Adrian.

Speak to a mortgage adviser

Purchasing a new home can be stressful. By speaking to a mortgage adviser, and sharing your budget planner, you’ll have a clearer idea of your affordability. You can discuss how much you will need to secure a property, including money to cover a deposit, legal fees, moving costs and your ongoing mortgage repayments.

“Mortgage advisers will be able to advise on how much you can borrow and the amount it will cost each month. Speaking to an adviser early has its benefits, as you will know what you can afford when searching for your home.”

“It’s important to ignore the noise and take a personal approach. We recognise that owning a home is a personal goal for many people, and one that is absolutely still possible. It all comes down to getting your finances organised, speaking to a mortgage advisor and making the most of schemes available. We recommend any interested prospective buyers speak to our friendly sales team at their local development.”