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Guide To Getting A Mortgage

A mortgage is a hard thing to get nowadays and can be truly something that needs to be planned for .So, here is a guide to getting one.

Have The Biggest Deposit You Can Afford

The lowest interest rates are reserved by mortgage providers for the people who have the largest deposit.  This means that most of the top deals on the market are going to people who are able to put down 35 to 40% of the property value.  Those who are only able to put down 10% will probably be getting the highest interest rate on the market.

This is why it will pay to take the time to save up as much as you possibly can.  If you are a first-time buyer, you may be able to use a government scheme to help you.  These schemes will make it easier to save more for your deposit.

Know Your Credit Score

If you want to get the best mortgage deals, you will need to have a good credit score.  It is recommended that you get a copy of your score from a credit monitoring channel before you apply for a mortgage.  This will ensure that you do not have any surprises when you meet with the mortgage lender.  It will also give you the time to sort out any inaccuracies you find on your credit report. If you need to get a loan but don’t have great credit, why not consider guarantor loans from Money Expert.

Close Unused Accounts And Pay Off Unsecured Debts

When a mortgage lender determines whether or not they are going to give you a loan, they will look at the total amount of credit that is available to you.  They will also look at the amount you own to other lenders.  This is why you need to look at clearing as much of your other debt as possible before you apply.

You also need to close any unused accounts that you have.  If you have these accounts, the lender might look at them and determine that you are not able to repay your loan.  This will seriously undermine your ability to get the mortgage that you want.

Be On The Electoral Roll With An Updated Address

There are a lot of mortgage lenders that use the electoral role as a means of verifying your identity.  This means that you could be rejected if you are not registered and if the electoral roll does not have your current address.  Fortunately, this is something that can be easily remedied.  

You will simply have to contact the local authority and ask them for a registration form.  You can also sign up online.  To avoid any issues, you need to ensure that the address credit agencies have is your current one.

Avoid Unusual Properties

All mortgage lenders want to know that they can get their money back if you stop paying.  This means that they are generally less willing to lend for properties that are seen as unusual and will prove hard to sell if you default.  Properties that fall into this category will include apartments above commercial properties, old buildings and properties built with unusual materials such as steel or concrete.  

Have All Your Documents Ready

There is no mortgage lender that will approve your application if you are unable to prove you are who you say you are.  This means that you need to have an up-to-date form of identification and that the address you provide to them is correct.  You will also be asked to provide a recent letter that proves your address such as a utility bill.

If you are employed, you will need to provide pay slips and bank statements for the last 3 months.  You will also need to detail any bonuses that you have received in this time.  The HR or accounts department of your workplace should be able to provide you with all the documentation you need.  If you receive other income, you will need to provide documentation for this as well.

Collect Evidence Of Self-Employed Earnings

It is important to note that self-employed people make mortgage lenders nervous.  This means that you will need to provide even more evidence of your earnings than a full-time worker.  If you are self-employed, you will need to get a copy of your tax returns and show your full accounts for the last 3 years.

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