Are you mortgage-ready?
Your first port of call should be getting your finances in good shape before lenders review them and assess your ability to make repayments on your loan. Some top tips for standing yourself in good stead include:
Save – To improve the chances of being offered a mortgage on favourable terms, save as much as you can towards a deposit. Open a dedicated savings account; make sure it’s paying a competitive interest rate.
Check your credit score – A good credit rating can help you secure a better mortgage deal, with a lower interest rate. To improve your credit score ensure you are on the electoral roll, pay utility bills on time and pay off your credit card balance in full each month.
Budget – Review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, close or cancel them. Prospective lenders will look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but leave enough saved to cover emergencies.
Time is of the essence – During lockdown, many lenders withdrew their ‘high loan-to-value’ (LTV) products which typically only require a deposit of 5% or 10%. Many lenders are now returning to the high LTV market; if you are a serious mover, you may need to act quickly.
Get some good advice – A mortgage is all about getting the most suitable deal for your circumstances too. We have our finger on the pulse of the mortgage market and can advise and support you through the entire mortgage process.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.