Wednesday, 15 March 2017

Our Top 5 tips for Getting a Mortgage

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Taking out a mortgage is likely to be the biggest financial commitment you’ll ever make, so you'll want to find the best deal you can. And the good news is there’s plenty you can do to improve your chances of getting your mortgage application accepted.

1. Your credit score matters

Before applying for a mortgage, get a copy of your credit report which is held by credit reference agencies such as Experian or Equifax. Part of the lenders review process is to find out how much of a risk you are based on your credit history. Don't worry if it doesn't look that great, there are lots of things you can do to help. For example, ensuring you are on the electoral role and closing down credit accounts that you no longer use.

2. Thinking of changing jobs? Don't.

Most lenders will want to see that you’ve been with your employer for a decent length of time before they’ll give you a mortgage, so if you’re thinking of changing jobs, it’s a good idea to wait until you’ve got your mortgage in place. Usually, it’s a good idea to have been in your existing job for at least three to six months before applying.

3. Reduce your debts

Before you apply for a mortgage, try to reduce any debts you have as this will help demonstrate that you manage your money responsibly, and will mean any mortgage application you make is more likely to succeed. It will also mean you will potentially be able to borrow more when it comes to a lender’s affordability calculations.

4. Save a decent deposit

The more you can save up to put down as a deposit, the bigger the choice of mortgages that will be available to you. Lenders reserve their best rates for those with larger deposits, so you’ll also benefit from lower monthly payments because you’ll have qualified for a better deal.

5. Get the information right on your application

Once you’ve started your mortgage application, don’t start changing figures as it could hold up your property purchase. For every material change made to the application it will need to be reassessed to ensure that it still falls within the lenders criteria. This may not be a major problem, but would probably delay a potential offer.

If you’re struggling to find the right mortgage deal, or you don’t know what you’d be eligible for or how much you can borrow, we can help. We can research the whole of the market for you and help you through the application process. An initial consultation is free of charge.

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