A few years ago, the Financial Conduct Authority announced tighter lending criteria to push banks and building societies into lending more cautiously in the efforts of avoiding another financial crisis. This means mortgage applicants will be subject of more vigorous affordability and qualification checks. So before applying for a mortgage, ensure all your affairs are in order.
- Complete a personal credit check
Nearly every adult in the country has a credit rating, used by lenders to assist them in making mortgage decisions. Websites you can use to check your credit score include checkmyfile, Clearscore and Equifax.
- Start saving
The general rule of thumb is the bigger the deposit you put down, the lower the mortgage rate will be. To gain access to the cheapest rates, you’ll normally need a 40% deposit at hand, however 10% will still get you access to some decent options as well.
- Ensure you’re on the Electoral Roll
Make sure you’re registered to vote; lenders who cannot locate you on the Electoral Roll at your current address are less likely to push your application through.
- Research the market
There are many mortgage options and rates to consider, but very few might be right for you. We introduce to Just Mortgages, which is a trading name of Just Mortgages Direct Ltd, who are appointed representatives of Openwork Ltd who are authorised and regulated by the Financial Conduct Authority. Just Mortgages can help find you a suitable mortgage based on your individual needs and circumstances and who can also advise on mortgages from a comprehensive panel of lenders.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
You can call them on 01206 812 395 or visit www.justmortgages.co.uk.
- Create a list of regular expenses
When applying for a mortgage you’ll need to disclose your credit card, loans and how much you spend on utility bills. During the interview the lender will also want details on what you spend on living outside of bills, rent and travel. Ensure you have this information at hand to speed up the application process.
- Locate bank statements
Most lenders still need mortgage applicants to provide bank statements going back three to possibly six months, so ensure you have these readily available.
- Keep your credit cards in check
Credit check agencies take credit card usage and management into consideration when rating your credit worthiness, so don’t max out your cards just before applying.
- Clear any existing loans
Mortgage lenders aren’t always big fans of outstanding loans, especially if they involve high monthly repayments. Do some research and find out if they will work against you.
Are there any other things you’re doing to prepare for your mortgage? If so let us know on Twitter @haart_uk!