You’ve saved up a deposit and you are ready to find your dream home. Sound familiar? If it does, it’s time to start thinking about a mortgage. Follow these simple steps to improve your chances of getting a mortgage offer.
1. Check your credit rating
Your credit report lists your past credit cards, loans, overdrafts, mortgages and even mobile phone and some utility payments. We can advise you on where is best to check your credit score, just drop us a line and we’re happy to help.
2. Simple ways to increase your credit score
Get a credit card that you can pay off monthly – even if you just pay for your monthly petrol on it, paying on time and in full will improve your credit score.
3. Register to vote
It may not have crossed your mind, but this is used to help with identity checks and it can make it very difficult to get a mortgage if you’re not signed up. If you’re not on it, you can register here – https://www.gov.uk/get-on-electoral-register
4. Don’t go into your overdraft
If you’re constantly in your overdraft, it could be seen that you don’t manage your money effectively, so avoid it if possible.
5. Cut down on spending
Mortgage lenders will often ask to see the past three months of your bank statements, so in the lead up to an application consider cutting back your spending to improve your chances.
How much can you afford to spend each month on your mortgage and other household costs. Before you start work through a comprehensive budget planner. Be realistic with amounts that you’ll spend on going out and new clothes – life continues after a mortgage! Why not ask your friends and family how much they spend on utilities, council tax etc.?
A mortgage application will require paperwork. Start getting everything together. Typically you will be asked for 3 months’ bank statements and payslips. Tax returns (SA302’s) if you are self employed.
8. Know the costs
You may have an idea of how much you’d like to spend on your new home, but how about the associated costs? These will include Valuation/survey fees, solicitors fees, broker fees and not least Stamp Duty (tax) You can calculate the amount of tax here: http://www.imaonline.co.uk/calculators . Remember that First Time Buyers may be exempt from paying stamp duty after recent changes.
9. And most important of all… get some good advice!
Remember a bank will only tell you about their own products and rates!
Want to find the best mortgage to suit you? We can help make the application process smooth and offer support and advice when you need it. Contact us today.