Buying a new home is an exciting journey, even if you’ve not applied for a mortgage before. Working with a knowledgeable adviser can simplify the path to being best prepared for a mortgage.
Whether you’re a first-time buyer, exploring a remortgage, or contemplating relocating, taking specific steps can accelerate the mortgage process. By preparing yourself thoroughly for a mortgage, you’ll position yourself more effectively when it’s time to apply.
What steps should you take?
It’s advisable to start getting prepared for a mortgage application at least six months in advance, allowing plenty of time to organise necessary documents and meet financial requirements.
When applying for a mortgage, affordability checks will assess whether your finances support monthly repayments. First-time buyers may need to gather additional documentation initially, while existing homeowners must also demonstrate affordability.
Lenders evaluate your income against expenses to ensure you can manage mortgage repayments. Thankfully, there are ways to enhance your chances of securing a mortgage.
Check your loans and debts
When applying for a mortgage, lenders will consider your existing debts, such as personal loans and credit card balances. It’s beneficial to pay off as much of your outstanding debt as possible before applying, as this improves your appeal to lenders. Additionally, refrain from taking on any new loans during this period.
Keep on top of payments
Ensuring that you make all your payments on time will show lenders that you’re a responsible borrower. This can include anything from rent and council tax to subscriptions and debit orders. Late or missed payments can not only hurt your credit score but also hurt your chances of getting approved for a mortgage.
Register for the electoral roll
Being registered to vote at your current address can enhance your credit score by verifying both your identity and residence. Ensuring your voter registration is up-to-date before applying for a mortgage is straightforward. Additionally, ensure that all bills and accounts are registered to your current address for straightforward documentation.
Save regularly
Having a healthy savings account can significantly improve your chances of a favourable response from a lender. If you also demonstrate a consistent history of saving across your bank accounts, it further strengthens your application. This not only indicates the source of your deposit but also underscores your financial responsibility and discipline.
Understand your credit score
Your credit score is vital when applying for a mortgage, as lenders use it to assess how much of a credit risk you are. Regularly reviewing your credit report and taking measures to enhance your score, if needed, are essential. While getting a mortgage with a low credit score is possible, it can present additional challenges.
Consider stable employment
Lenders prefer applicants with steady employment and a dependable income. If you’re considering a job change, it’s advisable to wait until after securing your mortgage. If you’ve recently switched jobs, aim to remain in your current position for at least six months. You’ll likely need to provide pay slips to support your financial stability during the mortgage application process.
Want to speak to an expert?
If you’re unsure about preparing for your mortgage application, speaking with one of our knowledgeable mortgage advisers can be beneficial. They offer valuable advice and guidance to streamline and ease the whole process.
Reach out to us today and discover how we can help you in finding a mortgage tailored to your specific needs.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is £598.
