Buying your first home in Cardiff is exciting, but it can also feel overwhelming. There’s a lot to think about—from saving for a deposit to finding the right mortgage deal. The good news? With the mortgage advice, the process becomes much easier.
This guide will walk you through everything you need to know to secure your first mortgage in Cardiff with the help of a mortgage broker.
1. Work Out How Much You Can Borrow
Before you start house hunting, it’s important to know how much you can afford to borrow. Mortgage lenders will assess your income, outgoings, and credit history to determine what they’ll offer you. Using a mortgage calculator can help estimate your borrowing power and monthly repayments.
Key factors lenders consider:
- Your annual salary and any additional income.
- Regular expenses, including debts and bills.
- Your credit score.
- The size of your deposit.
A mortgage adviser can provide expert mortgage advice and help you get an Agreement in Principle (AIP), which gives you a clearer idea of how much a lender might approve. Estate agents also take buyers with an AIP more seriously.
How to Improve Your Mortgage Approval Chances
Check your credit report – Ensure it’s error-free and improve your score if needed.
Pay off outstanding debts – Lowering your debt-to-income ratio helps.
Avoid new credit applications – Don’t take out loans or credit cards before applying.
Get a stable job – Lenders prefer at least 6-12 months in the same job.
Save a bigger deposit – A larger deposit means better deals and higher approval chances.
2. Save for Your Deposit
Most lenders require a deposit of at least 5% to 10% of the property’s value. The bigger your deposit, the better the mortgage deal you’re likely to get. If you can stretch to 15% or 20%, you’ll unlock lower interest rates and smaller monthly repayments.
Ways to boost your deposit and save money:
- Open a Lifetime ISA (LISA) for a government bonus on your savings.
- Cut unnecessary expenses and set a savings goal.
- Consider help from family—some lenders offer family-assisted mortgages.
3. Understand Mortgage Types
There are different types of mortgage products, and choosing the right one can save you money in the long run.
The main types:
Fixed-rate mortgages – Your interest rates stay the same for a set period (usually 2-5 years), giving you predictable monthly repayments.
Variable-rate mortgages – The mortgage rates can go up or down, meaning your payments may change.
Tracker mortgages – These follow the Bank of England’s base rate, so your payments fluctuate accordingly.
A mortgage broker can provide expert mortgage advice to explain your options and find the best mortgage deal based on your circumstances.
4. Factor in Additional Costs When Buying in Cardiff
Buying a property in Cardiff isn’t just about the deposit and mortgage repayments. Local costs can vary, so it’s important to understand what expenses you might face when purchasing a home in the area. There are other costs to budget for, including:
Estimated Costs When Buying in Cardiff
When budgeting for your first home, it’s important to consider not just the deposit and mortgage payments, but also additional costs involved in the process. Below is an estimate of what you might expect to pay:
- Deposit (10%) – If you’re buying a £200,000 home, a 10% deposit would be £20,000.
- Solicitor Fees – Legal fees typically range from £1,300 to £1,900.
- Survey Costs – Depending on the type of survey, costs can be between £350 and £750.
- Land Transaction Tax (LTT) – In Wales, the first £225,000 of your property price is tax-free.
- Moving Costs – Hiring a removals company may cost between £500 and £1,500.
Total Estimated Cost: £21,900 – £23,700
Understanding these costs in advance will help you budget effectively and avoid any unexpected financial surprises.
Knowing these costs upfront will help you avoid surprises.
5. Find the Right Mortgage Deal
Mortgage lenders offer different mortgage products, interest rates, and terms. Comparing deals on your own can be time-consuming, but a mortgage broker can do the hard work for you. They have access to a wide range of lenders—including some that don’t deal directly with the public.
A mortgage advisor will provide expert mortgage advice to:
- Find the best mortgage deal for your situation.
- Explain mortgage terms in plain English.
- Help with the mortgage application process to improve your chances of approval.
6. Secure Your Mortgage and Make an Offer
Once you’ve found the right mortgage deal, it’s time to apply. Your lender will assess your income, finances, and conduct a property valuation. If everything checks out, they’ll issue a formal mortgage offer.
At this stage, you can make an offer on your chosen house. If your offer is accepted, your solicitor will handle the legal process, and you’ll be on your way to owning your first property!
7. Get Expert Help
There’s a lot to consider when buying your first home, but you don’t have to do it alone. A mortgage broker or mortgage expert can guide you through each step, making the process easier and helping you secure the right mortgage deal.
Ready to take the next step?
Buying your first home is a huge milestone, and having the right support can make all the difference. With so many mortgage options available, working with a mortgage broker ensures you find the best mortgage deal suited to your needs.
If you need help understanding mortgage products, securing the right mortgage deal, or navigating the mortgage application process, expert guidance can take the stress out of buying your first home.
For tailored expert mortgage advice in Cardiff, speak to the specialists at Eden Hawk Cardiff. Their team of mortgage experts can help you find the best mortgage deal and guide you through the entire process—so you can buy your first home with confidence.
Don’t let confusion or uncertainty hold you back—get in touch today and take the first confident step towards owning your dream home in Cardiff.
