Top ten Mortgage tips

There are many things you can do to improve your chances of successfully applying for a mortgage.

Starting to make preparations six months, or even a year in advance can not only improve your chances of being accepted, it can open up the choice of mortgages available to you and, ultimately, save you a lot of money.

Here are our top ten mortgage tips for maximising your chances of getting the mortgage you want.

1. Get a copy of your credit report
   The very first thing to do is get a copy of your credit report. All mortgage lenders rely on this to get your credit score and assess how good a risk you are to lend to.
   
   
2. Check your bank statements
   Look at your previous 12 months bank statements. Mortgage lenders will put a lot of weight on your spending habits. Look at what you are spending your money on, regular payments and spending patterns can influence what the lender is prepared to offer.
   Coldly look at your statements and see whether you can alter your spending patterns so that they appear more attractive to a potential lender.
   
   
3. Check all your direct debits
   Make sure they are all necessary as they will be taken into account by the mortgage lender in their affordability calculations.
   If you haven’t checked your insurance and utilities to see if you are on the best tariffs, now is a good time to do so.
   
   
4. Review your existing credit
   If you have any loans or credit cards look to see how the balances can be reduced or paid off completely. Make sure you have made all your payments on or before their due date.
   Having outstanding balances will reduce the amount that will be offered by a mortgage lender.
   
   
5. Don’t take out new credit arrangements
   Do not take on any new credit agreements at least six months prior to to making an application as this will have an impact on your credit rating.
   
   
6. Look at your income
   Take a realistic look at your income. Break it down into it’s component parts if you have different elements to it such as bonuses, shift allowances, or commission. Different lenders may look at each element differently.
   Self employed earnings are typically judged over the previous three years. They will want to see steady growth, or at the very least, consistency. If it is a new venture, they will ask for accountants forecasts. If the income shows a decline, or wide fluctuations, then you will face a struggle to present things to your advantage.
   If you have the luxury of a long period of planning before applying for a mortgage, talk to your accountant about your plans. Your accounts may well be able to be presented in a way that is helpful to your application.
   
   
7. Save for more than the deposit
   Hopefully you will have saved for a deposit, but don’t forget all the other costs you will have to meet during the house buying process. As soon as possible start listing what you are going to have to pay and start planning for it.
   Click here for our guide to mortgage fees.
   
   
8. Get on the electoral register
   Make sure you are on the electoral register and that your details show the correct address.
   Being on the electoral register is the easiest way for a potential lender to confirm your name and address. Although they will ask for other types of ID, if you are not on the electoral register the chances of your application getting very far is almost nil.
   
   
9. Think about the type of property you want to buy
   Look at the property you are interested in from a lenders point of view as they have a significant financial interest in the property you want to buy. Any lender will carefully look at it from the point of view of whether it is good security for their money.
   Make sure you research the location properly. Is it in a potential flood zone? If it is, you might find it difficult to insure. If you can’t insure it you will not meet one of the conditions of the potential loan. Same thing applies to the construction of the property.
   If it is of non standard construction then you could find it hard to obtain finance for it.
   
   
10. Prepare your paperwork!
    Make sure you have all the documents that a lender may require. These can include utility bills and passport for ID purposes and bank statements and accounts for confirmation of your financial position.
    Find out as early as possible what your chosen lender may want. Have it to hand to minimise any possible delay in your application.
    

By following the above mortgage tips you should minimise any delay in your application. Of course, every application is different and one of the best things to do is to talk to a qualified and independent adviser who will work with you to get the best deal they can for you. Fill in the form and explain in your own words what you need from a mortgage. We will then pass it to one of our selected partners who will happily help you to achieve your goal.