Our Top Tips for Getting a Mortgage

Top tips for getting a mortgage

Taking out a mortgage is likely to be one of the biggest financial commitments you will ever make so it is essential that you get the best deal you can. Take a look and follow our top tips to ensure you get the mortgage you want.

Credit rating is important

Your credit report is a record of your financial history, including utilities and credit card payments, and any missed payments. A credit score is a tool used by lenders to help determine whether you qualify for a particular credit card, loan, mortgage or service and it matters.

People with high scores are usually seen as lower risk, and are therefore more likely to be granted credit with better rates. People with lower scores are seen as high risk and are less likely to be granted credit.

Even if you think you have a good rate, it is worth getting a copy of your credit report from one of the three companies lenders speak to when reviewing mortgage applications and these are – Experian, Equifax and Callcredit. You can get a copy of your credit report quite cheap but we recommend avoiding the ‘free trial’ options.

If you find that your credit score is lacking, work on it and try to improve it. Some simple things you can do include ensuring you are on the electoral roll and closing down any credit card accounts you do not use any more.

Big deposits are good

Lenders feel more secure for those who put down larger deposits and in general, the bigger deposit you put down the more likely your application will be accepted. You will also get a better range of mortgages to choose from and better rates if you put down a hefty sum of money which in turn leads to lower monthly payments.

Get professional advice

As stated earlier, taking out a mortgage is likely to be one of the biggest financial commitments you will ever make so you need to get it right the first time.

Explore all the options available to you thoroughly. It may be worth getting advice from an independent advice broker who is not tied down to any one provider. You can ask him for recommendations or ask him to find you mortgage products to give you more choice.

Government schemes

There are a few different mortgage schemes that the government has put together to help people obtain mortgages and these include the Help to Buy scheme.

The Help to Buy scheme helps potential buyers purchase a home with a deposit of 5%. It’s open to both first-time buyers and home movers for new-build and older homes in the UK with a purchase price up to £600,000.

Plan ahead – work out your budget

Excluding the deposit (which is the largest amount you will pay) there are a number of other fee’s associated with getting a mortgage for your home. These include Stamp duty bands, removal costs, solicitor’s fees, estate agent costs, home insurance, utility bills and more!

Before you proceed, try to estimate the cost of these. Get estimates and quotes from people and put together a budget. This will tell you if you are ready for your first mortgage or if you should hold back for a little while.

Stay in the same job

Lenders want to see that you have a stable income and have been with an employer for a fair amount of time before they give you a mortgage. If you are looking to change jobs get your mortgage in place first.

If you decide to change jobs first, it’s a good idea to be in your job for at least three to six months before applying.

Get debt free before applying

You will not give off the best impression to a lender if you apply for a mortgage and you owe a load of cash on credit cards or you have outstanding loans that need paying off.

Before applying for a mortgage try to reduce your debts as much as you can. It will show that you can manage your money responsibly which will increase your chances of the mortgage being accepted.


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