STEPS TO APPLY FOR A MORTGAGE
Your Mortgage People
FCA regulated mortgage brokers assisting customers with mortgages, remortgages and homeowner loans.
STEP 1 OF 4
Organise Your Finances
When venturing into the realm of mortgages, it’s important to know that lenders will scrutinise every aspect of your financial profile, leaving no stone unturned as they evaluate your finances as part of your application.
To avoid any potential disappointment, it’s crucial to ensure that your financial affairs are in good order before taking the plunge and applying for a mortgage.
Being proactive and demonstrating a robust financial profile will enhance your credibility and pave the way for a smoother and more successful application process.
Here’s a few things you can do to help you get your finances in order:
Check your credit rating:
To check your credit rating, use the three primary UK credit agencies:
When checking your credit score, should you spot any errors within file, act as soon as possible by reaching out to the respective agency for corrections. It’s important to rectify any errors before initiating the mortgage application process.
Keep in mind that if you have any past credit mishaps, their impact on your credit score may persist for a while. Regrettably, patience may be necessary in such instances as you await the gradual resolution of these issues.
Build your deposit:
The size of your savings can significantly impact your borrowing and the range of favourable deals available to you.
As a general guideline, aim to save at least 10% of the property’s total value that you intend to purchase. For example, if your eyes are set on houses valued at ￡250,000, strive to save a minimum of ￡25,000.
While it’s standard to target a 10% deposit, in certain scenarios, mortgages may be attainable for those with a 5% deposit.
Contacting a mortgage brokerage will help you assess the viability of a mortgage with a lower deposit. Our advisors can offer you a comprehensive understanding of your financial options.
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Streamline your financial profile:
Lenders often conduct thorough affordability assessments to predict your ability to meet repayments in the event of interest rate fluctuations.
Before submitting your formal mortgage application, it’s best to first streamline your income, expenditures and existing debts.
Improve your financial profile by cancelling unnecessary subscriptions and ensuring all payments are up to date before initiating the application process.
You should also prioritise paying off any unsecured loans at the earliest opportunity because it will improve your financial credibility.
Keep in mind that carrying debt may raise concerns during lender assessments, making it advisable to address and resolve outstanding debts before applying for a mortgage.
Stay consistent:
Demonstrating reliability is crucial when seeking approval from lenders – and consistency is the linchpin in achieving this assurance.
Having a minimum of six months of continuous employment before applying for a mortgage is advisable. This validates the likelihood of a consistent income in the immediate future, instilling confidence in your ability to meet your repayment obligations.
Equally important is registering on the electoral roll at your current address. Being on the electoral roll is pivotal for lenders to verify your identity. Failing to do so may lead to identity verification issues, potentially resulting in credit application rejection due to fraud concerns.
Do your calculations:
Use free online mortgage calculators to estimate your potential borrowing amount and associated costs.
During this process, also consider any additional expenses, including legal fees, survey fees, potential stamp duty, moving costs and any other applicable mortgage-related fees.
By incorporating these considerations into your costs, you’ll gain a more comprehensive understanding of the overall financial implications involved in your mortgage journey.
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