Getting a mortgage can seem impossible to some, confusing to others and a whole new world to first-time buyers. With a very competitive market and house prices rising rapidly, some may have dismissed the idea of getting a mortgage completely. But there are certain steps you can take to make yourself stand out as an ideal applicant to mortgage lenders.
This article will look into everything you can do if you’re wanting to get a mortgage within the next year or so. From speaking to a professional online mortgage advisor to avoiding your overdraft, follow these steps to improve your mortgage application.
Save As Big a Deposit As Possible
The bigger your deposit, the better your application will look. You’ll also end up paying less interest over time if you offer a larger deposit. It’s suggested that, if possible, try to pay £100 over the required deposit to stand out to mortgage lenders.
Avoid Changing Jobs
Lenders will want to see that you have a stable income when applying for a mortgage, so you should try to avoid moving jobs until after you get your mortgage sorted.
You should especially avoid going self-employed when in the process of applying for a mortgage as lenders will want at least a years’ worth of accounts to justify offering you a mortgage deal.
Speak to an Online Mortgage Advisor
Online mortgage advisors are there whenever it suits you to discuss your mortgage options. Offering professional mortgage advice from the comfort of your own home, mortgage advisors are great to turn to for help with a mortgage application. They will be able to find a deal suitable for your financial circumstances.
Getting specialist help in such an important life decision like a mortgage, speaking to a professional advisor is paramount in getting a good deal. Especially for first-time buyers.
Pay off Debts
If possible, try to pay off any debts before applying for a mortgage. Debts can make it harder to get a good deal as lenders may see you as too much of a risk. If you’re unable to do this, you should go to a specialist adverse mortgage company to discuss your options.
Sort Credit Rating
Your mortgage lender will check your credit score, so make sure it’s as good as possible before applying. Your credit report lists all credit details such as credit cards, loans, overdrafts etc, from the last six years. If you have previously missed payments, this will show up on your account.
Don’t Miss Any Payments
Missed payments will go completely against you when applying for a mortgage. Any missed payments will stay on your profile for six years, so you want to avoid this as much as possible. To avoid missing payments, make sure to set up direct debits.
Avoid Buying Expensive Items
Lenders will look at your recent bank statements when you apply for a mortgage, so any big payments like expensive cars or items could work against you. They’ll want to see how you spend your money and finding big payments may make them wonder about your creditworthiness.
Avoid Your Overdraft
If you always end up in your overdraft, lenders will see you as a risk. For at least three months before applying for a mortgage, avoid your overdraft like the plague.
Take Time on Your Application
Any errors on your mortgage application could lead to a rejection, affecting your credit score and any future mortgages you apply for. If your paperwork is done correctly, this will help speed the process up. Little details like rounding up your income instead of the exact amount, not including your middle name and missing out debts can lead to a delay in your application.
You Can Get a Great Mortgage Deal
Even if it doesn’t seem possible, speaking to an online mortgage advisor about your options can show you how you can get a mortgage, no matter your financial situation. If you follow these tips, you can significantly increase your chances of getting accepted. Don’t put your dream of owning your own home to the side.
Once you sort your credit score, speak to a professional and don’t miss any payments, you should be able to find a mortgage deal suitable for your price point.