Mortgage Tips
Save the biggest deposit you can
Mortgage providers reserve their lowest interest rates for people with large deposits. That means most of the top deals on the market are limited to buyers who can put down between 35% and 40% of a property’s value, while those with only 10% to put down will have to pay a higher rate.
In other words, save up as much deposit as you possibly can. If you’re a first-time buyer, a Help to Buy ISA can be a good starting point.
Avoid surprises by knowing your credit score
You will need a good credit score to qualify for the best mortgage deals. So order a copy of yours from our credit monitoring channel before you make any mortgage application.
This way you can be sure to avoid any surprises and it will also give you time to correct any inaccuracies should you find any.
Pay off unsecured debts and close any unused accounts
When deciding whether or not to take you on as a customer, mortgage lenders will look at the total amount of credit available to you – as well as the amount you owe.
So clear as much of your debt as possible and close down any accounts you no longer use. Otherwise, lenders may be concerned about your ability to keep up with your mortgage repayments.
Get on the electoral roll and update your address
Many companies use the electoral roll to verify your identity, so your mortgage application may well be refused if you are not registered on the electoral roll at your current address.
This is easily remedied, though. Just contact your Local Authority and ask for a registration form or sign up online.
To avoid any issues, it also makes sense to ensure the address the credit agencies have for you is up-to-date.
Avoid unusual properties
Mortgage lenders like knowing that they can get their money back should you default on your repayments, for example. Consequently, they are often less willing to lend against properties that are deemed to be unusual and may therefore prove harder to sell on.
Properties in this category – and therefore best avoided – include flats above commercial premises such as cafes and bars, old or unusual buildings and homes built using non-standard construction materials such as concrete or steel.