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In all probability obtaining mortgage funding will be the biggest financial commitment of our lives and attaining such funding in light of recent economic factors and changes to regulation has never been so difficult. The process can be both overwhelming and complex and particularly so for those that are approaching the process for the first time.

Before taking on this debt, there are some key considerations to be thought about. Ultimately this will allow you to achieve the goal of owning your very own home whilst knowing that you are financially comfortable during, and after the mortgage process.    

The first consideration of any first-time buyer must be the ongoing monthly payments that will need to be made going forward.

You must ensure that the level of borrowing you intend to obtain is affordable in relation to the corresponding monthly repayments. Your ability to repay the mortgage will form an extensive part of any mortgage application and will be assessed by any potential lender in some scrutiny, however, having a figure in mind is a good place to start. Such repayments will be directly correlated between the amount of borrowing and the interest rate of the mortgage product, which in turn will be dependent on the level of deposit put down. This is most easily calculated via any one of the numerous calculators found online.

Another factor of deliberation is an increase in interest rates, although you can calculate what your monthly repayments would be on the basis of a generic product applicable to the level of deposit you will be putting down, the majority of products will have a duration of between 2-5 years. After this period your product will revert to the Lenders Standard Variable rate which will vary between lenders, but will most likely be considerably higher; usually in the region of 4%-6%. This figure ordinarily has a direct relationship with the Bank of England Base rate and recent indications imply that this is due to increase in due course from its historic low of 0.50%. It is therefore more important than ever to ensure that you will be able to afford your repayments if your interest rate is to increase.

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