Are you mortgage ready?

Here are just a few hints and tips to help you on your way…

DEPOSIT 

The size of deposit you have will have an impact on the rates that you are offered and the amount you could borrow. Lenders will often look into how first-time buyers are financing themselves and whether they have relied on family and friends for financial support.  You can currently purchase a property with as little as a 10% deposit, although this can vary.  If you’re going for a buy to let, it’s 25% as a rule.  A mortgage broker can discuss your options with you and assist in finding the best lender for you.

CREDIT SCORE 

Your credit score can have a big impact when looking for a lender.  A credit search serves as evidence to support whether or not you are likely to pay back the loan amount on time.  You can check your credit score online to see how you are doing and gain tips on how to improve your credit score.  One of the things you can do to help improve your score is to put in place an income protection policy.  This will ensure your major liabilities such as mortgage, rent, council tax etc. are maintained in the event of you being unable to work due to an accident or illness.  Income protection policies are available from Your Protection Ltd.

REVIEW YOUR FINANCES 

Ideally, six months prior to applying for your mortgage, avoid applying for further finance. This could have a negative impact on your ability to find a lender.  It is also important to keep up with all your current repayments, and avoid using your overdraft. If you have any outstanding debts, see if you can pay them off early, this will put you in a better position when you are searching for lenders.

INCOME 

You will need to have a dependable income.   Your financial history and employment status will be looked into, and a stable income is further proof you can afford the repayments. Avoid switching jobs during this period as it may jeopardise your mortgage application success. You will need to provide evidence including bank statements and you P60, along with proof of your deposit.

REGISTER TO VOTE

Lenders will often use the electoral roll to check your credentials. This simple but effective step can help your mortgage application and can help to boost your credit score.

BAD CREDIT?

If you are looking for mortgage but are worried about your credit, speak to an independent brokerage, such as Your Protection Ltd, as they access to the whole market, unlike banks, and can help find the right lender to suit your individual needs and circumstances.   

Great News! A recent announcement by Rishi Sunak means that the stamp duty holiday has been extended until the end of June – Please up to date with this by visiting our website www.yourprotection.co.uk 

Call: 01695 668281

Email: info@yourprotection.co.uk