If you’ve got to the stage where you’re considering applying for a mortgage then congratulations. That means you’ve somehow managed to save up around £20,000 to £25,000 as a deposit on your property. Unless, you’ve signed up to a Help to Buy scheme where you only need a five per cent deposit initially. Either way though, you’re about to embark on the first stage of your property journey.
Before you do that though, there’s a number of preliminaries to get out the way first. You want to make it as easy as possible for the lender to say yes to your mortgage application. And this is how they can do that:
Make sure your credit score is as good as it possibly can be. That means checking with Experian or some other credit agency and then making any adjustments. It could be something as simple as closing down old credit cards or making sure you’re registered to vote. Try and reduce outstanding debts too.
Save up as much of a down payment as you possibly can. Not only does it mean that you’ll be borrowing less and have a lower monthly repayment, but it also shows the lender that you’re capable of saving; the idea being you’re careful with money.
Proof of income
A lender will want to see how much you’re earning. This can be achieved by showing a P60 from your current employer and several pay slips. If freelance then you’ll need to show at least two (probably three) years of accounts.
Make a list of any expenses such as council tax, food, estimated utilities, transport, credit card payments etc to show the lender as he or she will want to take these into account when calculating whether or not you can afford the monthly repayments. You can prove this by taking along several months’ worth of bank statements.
Proof of identity
This can be achieved by producing your passport or driving license. You’ll also need utility bills to prove you live at your current address.
Details of the property
Take along the estate agents details on the price, size, location etc of the property if you’re looking for a mortgage for a particular property. It’s also a good idea to be able to supply the name and number of a solicitor or conveyancer who’ll be acting on your behalf for the purchase.
Get a broker
A mortgage broker will cost a bit of money but he or she is probably capable of getting you a much better deal than you would yourself – especially if you’re working full-time and don’t have a lot of time to constantly compare deals (which can change weekly and even daily). A broker would prove particularly helpful if you’re self-employed as you may need a lender who specialises in freelance or contract mortgages. Otherwise, if you do have time, try some of the comparison sites online. There are plenty!
If you don’t get approved for a mortgage then don’t despair. Maybe it’s because you need to tidy up your credit score or repay more debts. Do this then reapply. Alternatively, you could think about going down the Shared Ownership 15route (shared rental/mortgage) or looking into a Help to Buy Scheme. There are lots of options out there, really!
For mortgage advice, get in touch with our expert advisor. Request your mortgage appointment here.
If you’re looking to buy a house any time soon then do get in touch with us on 0333 577 0733 or send us an email to firstname.lastname@example.org.