Improve your chances of succeeding with your
mortgage application?
Start preparing early.
If you are thinking about buying for the first time, remortgaging or moving home this year then try to be mortgage ready 3 months ahead of time. This preparation puts you in a much stronger position.
Understanding affordability checks.
These allow the lender to establish if you are safe to lend too. If you’re finances are in order you are more likely to be accepted. The test investigates your household income vs expenditure so ensuring you balance the books each month is vital. Going overdrawn is ok but not over your overdraft limit.
Make payments on time
Ensuring everything from your phone bill and household utilities to store cards and loans are paid on time will show the lender that you are financially secure and manage your financial situation well. This makes you a safer lending option.
Improve your credit score
There’s a few simple amendments which can greatly improve your credit score. Firstly, is registering to vote by getting on the electoral roll at your current address. Then, ensure all your bills and bank accounts are also registered to that address. This also makes you appear more reliable to the lender by being easy to trace. Being accepted for and using a credit card, then repaying it each month will show you are reliable at paying off your debts within a certain time frame. It’s a good idea to set up a direct debit for the repayments to save you the hassle of having to remember to pay on time every month.
Although if your planning to apply for a mortgage is the next month or 2 it is best not to apply for a credit card.
Make some cut backs
If you’re able to make any cut backs to your spending, it’s a good idea to do these ahead of applying for your mortgage. The more surplus money you can show you have on your income and expenditure sheet the better it will look to the lender. Maybe there’s an unused gym membership or satellite TV subscription which could be cancelled?
Stay in continuous employment for 6 months’ minimum.
Evidencing that you have a regular and stable income every month also enables the lender to be confident you can make the repayments on your mortgage. Most lenders are ok with probation periods but only if you have been in continuous employment for a minimum of 6 months. If you do plan to move jobs make sure it is a permanent role.
If you receive overtime, bonuses, or commission you will be typically be asked to provide pay slips for the last 3-6 months so ensure you have these ready to show the lender.
Get help from an experienced professional
Benefit from the expert advice from one of our advisers about improving your affordability and application. We shop the whole of the market for you to help find the best deal for your circumstance. Just give our team a call on 01273 736536 and we can arrange a telephone or face to face appointment to chat over your objectives. By the way… we cando home visits in the evenings and on Saturday mornings if that’s easier for you.
It all starts with a free, no obligation chat about your circumstances and objectives, so contact us.