A mortgage requires work – though the end result of owning your own property is very much worth it. Here are some tips for getting an application approved.
- Save A Huge Deposit Possible
Most mortgage providers will give lowest interest rates to people who have large deposits. Thus, a majority of the top deals are limited to buyers that can present 35% – 45% of their property’s value and those that manage only 10% paying higher rates.
In short, do your best to save as much deposit as you can. Consider getting some assistance form ‘Help to Buy ISA‘ if you are a first-time buyer. You can find out more about this here.
- Know Your Credit Score
As is with any loan, you need a good credit score to land the best deals, and the same applies to mortgages. So, you should check with the credit monitoring channel and get a copy of your credit score before you apply for a mortgage.
In so doing, you will be able to evade those unpleasant surprises that tend to pop up, plus you will note any issues or inaccuracies that need correcting before making your application. If your score is poor, then consider Money Expert guarantor loans.
- Get Your Documents In Order
Every mortgage lender will need you to show proof of who you are before doing any business with you. Therefore, the information on your driving license, ID, and passport should be correct and up to date.
You may have to present other documents such as a letter from your bank or your utility bill that will confirm your address. If you are employed, then your P60s dating two years back and payslips, as well as bank statements dating at least three months back, can also better your chances of having our mortgage application approved.
You can access your HR and accounts departments to give you duplicates of these documents. You also should ensure that the documents you present also state any other financial sources such as Child Benefits or work bonuses.
- Avoid Unfamiliar Properties
Every creditor likes knowing that they will get their money back should the borrower default on making repayments. It is such an ambition that makes them wary of lending against properties that are unfamiliar or unusual thus proving harder to accept.
For instance, residential houses atop bars and cafes or even odd buildings, as well as those not built to code in terms of materials and construction standards, are examples of properties that fall under this category.
- Show Proof Of Self-Employed Earnings
If you are self-employed, you can ease the nerves of the mortgage lenders by providing enough evidence of our income venture and show your earnings. You will need to present details of your full accounts dating the last three years or a SA302 form dating at least three years from HMRC.
- Settle Unsecured Debts And Close Dormant Accounts
Before they accept you as a customer, most mortgage lenders will first assess the total amount of credit that you can qualify to get and how much debt you have.
Therefore, close all dormant accounts and make sure you have settled all debts before you fill the mortgage application. It will help increase your credibility in the eyes of the mortgage lenders, showing that you can honor the repayments.
- Join The Electoral Roll And Update Your Address
Many mortgage lenders use the electoral roll to verify the identity of their customers. You will lower the chances of your mortgage application being turned down if you register on the electoral roll using your current address.
You can make this easier by sign up online or contact your local authority requesting a registration form. Your address at the credit agencies should be up-to-date so that you avoid any inconveniences.