When it comes to getting a mortgage, it helps a lot to prepare in advance. Firstly, you need to build your deposit. That can take several years. Secondly, you must make sure you make yourself an attractive mortgage candidate. Ideally, you want to allow at least six months for this. Then you need to put in the proper mortgage application correctly.
Building your deposit
Everybody is different, so it’s impossible to say how long you should allow for this process. It is, however, possible to say that you should learn about lenders’ rules on deposits. Firstly, you need to know what percentage of a property’s price you will need to have to be even considered for a mortgage.
Secondly, you will need to know what sources of funds you are allowed to use to build it. In particular, research the rules around gifted deposits and ensure that you comply with them in letter and spirit. If you don’t, then there is a strong chance that your future mortgage application will be turned down, even if you are a perfect candidate in every other way.
Making yourself an attractive mortgage candidate
You want to allow at least six months for this. Your first step is to make sure that you have ID. If necessary, get or renew your passport and/or driving licence. Next, check and see if you need to do any administrative cleaning. Before applying for a mortgage, you want to be on the electoral roll at the address on your financial statements.
At a minimum, ensure that your current account and payslips/accounts all show the same address as your electoral-roll listing. Ideally, check the details of all financial products you hold. This may be a nuisance, but you should be doing it anyway.
Check your credit records with TransUnion, Equifax and Experian. Make sure that they are all complete and accurate. If there are any mistakes, contact the agency immediately to have them corrected. Similarly, if you have failed to mark accounts as closed, do so promptly. For example, if you have an old credit card you never used, call the lender and close it down properly.
During this period, think about your finances with particular care. Remember that your lender will scrutinise your bank statements, so think about how they are likely to appear to an objective third party. If necessary, get an objective third party to look at your bank statements as they currently stand. Ask them if they think you should change your spending habits, at least for now.
Putting in the proper application in the right way
You might find it very helpful to use a mortgage broker. They can guide you to the best deal for you and advise you on how to apply for it. The critical point to keep in mind is that lenders want to know the answer to three key questions. These are:
- Can you afford the mortgage?
- Will you repay the mortgage without any hassle?
- Can they recoup their money from selling the property if there are any problems?
The more convincingly you can answer yes to all three questions, the more options you are likely to have. With that said, you don’t need to give up in despair if you’re not a “perfect” candidate. You may still find a more niche lender who will take you on.
As a final point, when you submit your application, as obvious as this may sound, ensure that you follow all the instructions. Answer all questions fully and accurately and upload/send any requested documents. Administrative errors might not get your application declined, but they may get it delayed.
Why use Coombes & Wright Mortgage Solutions?
We are an award-winning mortgage & protection broker providing local, flexible, friendly advice. Our head office is in Brookmans Park, Hatfield, and we have advisers in Abbots Langley, Hertfordshire, London and Dover and Canterbury in Kent.
Our team has over 100 years of combined property and mortgage industry experience. Jointly, we have helped and advised thousands of people at all levels of the property ladder. We pride ourselves on personalised service, exceptional customer care and a friendly approach.