| Consider using a mortgage broker. If they're independent, they can scout around for the best deal. Of course, they're not doing this for free, but it's in their interest to a) Get your business, so b) They'd be more inclined to act in your interests. Plus, word of mouth is the best advertising, and they don't have a big company to fall back on if they screw up. So they're more likely to be straight with you, an get you a good deal. Before you fill out your first mortgage application, take whatever steps you can to improve your credit. Pay off old loans, and once they're paid off, ask your creditors to remove negative information from your credit report. If your credit is still not good enough, talk to family and friends and see if you can find someone with a good credit rating to co-sign your first mortgage. Be straight with them, so they understand the seriousness of what they're doing. I would only do this as a last resort. It's not fair if you're not sure you can meet the repayments, and you could ruin them financially. Families can break up on account of money problems, so everyone shoud go into this with their eyes wide open. TIP: Don't sign documents without reading them. As soon as possible, before you close the deal, read the documents you'll be signing carefully, and make sure you understand them, so you won't have to sign them in haste. TIP: Shop for insurance well before you are ready to close the deal. If you wait until the last minute to get insurance, you may have no time left to shop around for the best policy. TIP: Don't look for a property without being pre-approved for your first mortgage. You will have much more negotiating power with the seller, and may be able to save thousands of pounds. You need to be sure you can afford the repayments. Lenders consider a number of things working out how much you can borrow, like the outgoings and your credit history, your income and employment status, the property value, although lenders use different rules, most of them share these guidelines. TIP: Don't take the vendors's word that repairs have been made. If the vendor agrees to make repairs, have your inspector verify the work's been done before closing. And lastly: Try to keep the duration of the loan as short as you can. The shorter the 'term' the less you pay in interest.
You may think the mortgage is affordable now, but what if you get into financial difficulties in ten years time? Find a mortgage that has low or no pre-payment penalties, and pay it off as quick as you can. You'll sleep easier, and your bank balance will look a lot rosier. Explain your specific needs to your first mortgage broker, and let him find the best deal for you. However, be aware that some mortgage lenders will pay some brokers to be recommended; so it is better to make sure that you are using an independent mortgage broker to get you the most convenient first mortgage available in the market. | 
