Getting a mortgage doesn’t have to be difficult. We’ve put together a guide to help you, so read on to discover how to go about getting a mortgage and what you can do to improve your chances of getting the best deal possible.
Improve your credit rating
First of all, when seeking a mortgage, do all you can to improve your credit rating. You can check your score with services such as Experian. Most crucial of all, is to check that the report is accurate and doesn’t contain any mistakes or fraudulent activity, if you think it does, contact them immediately. You can also take a number of steps to improve your score, from getting on the electoral register to closing unused credit, debit, store cards and bank accounts. Also, pay off your debts whenever you can and don’t miss or make a late payment on your cards. You can also build up your credit history by using a credit card, but by paying it off swiftly. If you want to find out more about improving your credit rating, there is lots of advice online to help you.
Save, save, save
The bigger the deposit you have, the less you’ll have to borrow and the better the mortgage deal you are likely to be offered. So cut out unnecessary expenditure and do all you can to save for a deposit. The minimum you are likely to need is 5% of a property’s purchase price, though a larger deposit of 10% or 20% would give you more choice and better rates of interest. If you are having difficulty saving up for a deposit, investigate if you are eligible for any Help-to-Buy schemes to help boost your deposit with a loan which is usually interest-free for 5 years.
Be a loyal employee
Mortgage lenders like to see that you‘ve been with your employer for a reasonable period, 3 -6 months as a minimum. So if you are thinking of changing jobs, don’t do so until after you’ve got your mortgage in place and you’ve bought your property. When applying for a mortgage you will need proof of income, so have your p60, plus at least three months worth of bank statements and payslips to hand. For the self-employed it is trickier, you’ll need to show proof of your income and tax with an SA302 form. Photo ID is also all important when purchasing a property, so if you don’t drive; ensure you have a valid passport.
See a mortgage advisor
When looking for a mortgage, it’s a good idea to see an experienced mortgage advisor who can guide you through the process. They’ll also have access to a wider variety of mortgage products, than if you went to a single high street bank or building society. Mortgage Solutions are experienced mortgage advisors who can help you get the deal best suited to your needs and take you step-by-step through the process of applying for a mortgage.
Stick with it
Once you’ve got your mortgage arranged in principle, don’t make changes, as it will hold up your application and could lead to it being assessed all over again, delaying your purchase.
So there you have an overview of the mortgage process and what you can do to give yourself the best possible chance of being accepted for a mortgage and getting the best deal.