When you’re thinking about buying a new property, you want to do everything possible to make sure you can get a mortgage. Even if you own a home and want to move house, it’s good to check out what your current circumstances are so that you’re certain you can take that next step.
We’ve put together our top tips of things you can do to help increase your chances of getting a yes from lenders first time around.
Know your credit score
Knowing your current credit rating is important when starting to think about getting a mortgage, because it shows what your current financial position is like on paper. If you have a good or excellent credit score, this improves your chances of getting a mortgage. If your score’s not so good, you can investigate and take steps to improve it. You can access a complete credit report from several reputable online sources, such as Experian or Equifax (there may be a charge for this service).
Avoid taking out new debt
Avoid taking out any new finance agreements prior to taking out a mortgage, such as personal loans or car finance. Simply put: the more debt you have the less you’ll be able to borrow, so taking on anything new is likely to reduce the amount you’ll be able to get a mortgage for.
Boost your savings
The more money you can put down as a deposit, the less you need to borrow, which makes you more attractive to lenders who can see that you’re good at budgeting and more likely to meet your monthly payments. You’re more likely to save money on your monthly payments too – if you have a bigger deposit, this will reduce your loan to value (LTV) and allow you access to a larger number of lenders, mortgage deals and better interest rates. Check out some of our tips on how to save money to buy a house here.
Add an extra boost to your credit rating
Most credit files only record information about debts and utility bills, but some companies are now offering the opportunity to boost your credit rating by providing further information on things that aren’t usually taken into account. Sharing details for things such as payments for streaming / entertainment services and savings accounts, which help to show lenders that you’re good payer (There is usually a charge for this kind of service).
Getting the right advice for your mortgage
After you’ve worked hard to make yourself an attractive candidate for a mortgage, you’ll need some expert, advice from a professional to find the mortgage for you. Our mortgage advisers have access to 1000s of deals with over 90 lenders, which means they can find the right option to suit your individual circumstances.
To make a free no-obligation appointment to speak to one of our mortgage advisers in Harrogate, give us a call on 01423 895072 or send us an e-mail.