This year has been a pivotal turning point for many...
Top tips on getting a mortgage
With falling interest rates attracting so many potential property buyers to the market, now is a great time to get a mortgage. Whether you’re a first time buyer, a buy to let landlord or just moving home, it’s always an idea to look at the best deals available to suit your needs.
There are many things to take into consideration when you first start looking at your financial options for property; everything from timing and market conditions to ensuring that you keep your paperwork up to date. With such a strong focus on housing and mortgage lending already this year, now is the time to think about how can secure your mortgage as soon as possible.
- Get registered
It may not be the first thing you think of when applying for a mortgage, but many lenders will begin their checks by looking up names on the electoral roll. This is to ensure that everything is above board in terms of your application as they’ll use this to confirm your name, current address and general financial history. If your name does not appear on the register, this will make it much more difficult for lenders to seek you out and it could affect your chances of getting your mortgage approved. It may seem simple, but it’s vital to sign yourself onto the register prior to your property search if you haven’t already done so.
- Financial diligence
In order to obtain a mortgage, you must save a deposit. For an owner occupier mortgage, the larger the amount of cash you can put down on a property will mean the smaller your mortgage payments will be, which of course is generally more positive for those looking to live in a property long term. With a buy to let mortgage, this works slightly differently, while you will still need a large deposit, the payments you make are usually on an interest only basis and not repayment. Further information on this is available here.
No matter what your reason is for needing a mortgage, you’ll need to be very aware of your own financial situation. You will need a deposit and to have a good grip of your income and expenditure, as well as your credit score and any outstanding debts. It’s likely that this will be assessed in the interim period of your mortgage application, so reducing your cash flow and saving where possible will prove much more beneficial.
- Be prepared
It’s important that all paperwork and administration is up to date. This includes wage slips, proof of address, credit scores and anything else you think you may need – preparation is the key to a successful mortgage application. Being as efficient as possible will also make for a speedier process so it generally helps to have things ready ahead of when you’re likely to need them.
However, paperwork isn’t the only thing to be vigilant about. It’s easy to get caught up in the excitement with buying a new home, but remember if your first offer isn’t accepted, it’s not the end of the world. Be prepared for the worst possible case scenario which will help you build resilience throughout the remainder of your buying process.
- Shop around
Each individual person will have different mortgage needs, so it’s unlikely you will find the best deal by going directly to one lender. Like with many other financial products, it’s best to search the market to evaluate all deals and prices which best suit your individual needs. Mortgage brokers like Expedite finance can assist you with this and will scour the market to see which lenders can provide you with the most ideal solution. Some lenders will even specialise in certain mortgages, such as buy to let or remortgages, so it may be worth speaking to a broker on this basis.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
For mortgages, we can be paid by commission from the lender and a client fee of £395 paid on completion of the mortgage.