Need a Mortgage?
Where do you start?
Buying a home is the largest purchase you’re likely to 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.
Here are some tips to help you get the mortgage you want.
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. This will allow you to see what lenders see when they review your application.
2. Know your budget
Sit down and work out your budget before applying for a mortgage. You will need to be sure you can borrow enough to cover the purchase of the property and that you’ll have enough spare to cover all the associated costs and fees.
3. Stick with your job
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 switching jobs, it’s a good idea to hang on until you’ve got your mortgage in place.
4. Try to reduce debt
If you’re submitting a mortgage application, the last thing any prospective lender is going to want to see is that you owe a load of cash on credit cards or you’ve got outstanding loans.Before you apply for a mortgage, try to reduce any debts you have.
5. Proof of income
Mortgage lenders will want to see proof of how much you earn, so you’ll probably need a P60 form which you get every year from your employer and shows a summary of your pay and how much tax has been deducted.
You’re also likely to be asked for three months’ worth of bank statements and payslips so the lender can look at both how much you have coming in as well as your outgoings.
6… or accounts if you’re self-employed
Lenders want proof that you’ll be able to keep up repayments, so they’ll usually ask to see an SA302 form relating to the last three years from HMRC or your full accounts for the last three years. If you don’t have these available, it’s unlikely you’ll be accepted for a mortgage.
7. Save for a 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 hefty deposits, so you’ll also benefit from lower monthly payments because you’ll have qualified for a better deal.
8. Buying with someone else can be easier
If you’ve no hope of building up a decent deposit on your own, you might want to think about buying with someone else. This could boost your chances of securing a decent mortgage, particularly if they’ve got an excellent credit history and a higher income than you. But remember that this is a big commitment, so you’ll need to sit down and work out with the other person what would happen if one of you wanted to move in future.
9. Don’t mess with your application
Once you’ve started your mortgage application, don’t mess around with it and start changing figures as it could hold up your property purchase.
10. Get help
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, it might be a good idea to enlist the help of a mortgage broker - like us! We can research the market for you and help you through the application process so you don’t have to go it alone.
Here’s an idea of what we can do: “Daniel was fantastic in helping us with a very complex re- mortgage due to a difficult financial situation. This took a long time to complete due to the complexities of my situation - Daniel went over and above to find a solution to our difficulties, to change over from our interest only mortgage of 10 years, consolidating our existing debt and enabling us to move forward. Daniel was approachable & very supportive throughout the process. My husband and I are extremely grateful to him for his service”.