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How to boost your chances of getting a mortgage

How to boost your chances of getting a mortgage

If you’ve decided to buy a new property, it’s likely that you’ll require a mortgage. With endless choices out there and loads of information to take in, the world of mortgages can often appear daunting. We advise everyone considering a mortgage to meet with a mortgage advisor to discuss all the options.

Every mortgage is different and all lenders have different criteria. The important thing to remember is that you’re not going to meet every lender’s criteria so take your time to find the one that suits your needs.

While the criteria may be different for each mortgage, each lender will usually look at:

  1. The size of the loan you need

  2. How much deposit you have

  3. Your income

  4. Your credit score

  5. Your outgoings and any debt

It’s impossible to say whether you’ll be accepted for a mortgage but there are a number of simple things that you can do that will help boost your chances.

  • Mortgage lenders will check your credit score so why not check it first? If your credit rating needs to be improved, you should focus on this a few months before applying for a mortgage. Ensuring your name is on the electoral register is often a quick fix.

  • If you have credit with an ex-partner, it could be weakening your credit score. Be sure to remove yourself from any previous, unused credit.

  • It’s important to manage your credit appropriately. There’s a fine line between having credit and getting too close to your credit limit. As a general rule of thumb, you should only aim to use around half of your credit limit. Remember to never go over your credit limit.

  • Set up direct debits to ensure that your bills are paid on time every month. Missed or late payments may result in extra charges and fees and could also affect your credit score.

  • Try and stay out of your overdraft. This may be easier said than done but constantly going into your overdraft could indicate that you’re not very good with money. It’s also a good idea to try and pay off any existing debt.

  • When applying for a mortgage, it’s crucial to not apply for lots of credit cards or any other unnecessary credit as this can imply you’re desperate for money. The more searches for credit in a short time that appear against your name, the less likely you’ll be accepted for a mortgage.

  • Reducing spending will not only help you save for a deposit but will also look good when mortgage lenders ask for details of your outgoings. Many even want to see bank statements as evidence. This is because providers will want to check that you’ll be able to afford all mortgage repayments.

  • Save as much deposit as you can. Mortgage lenders will offer low interest rates for those with big deposits so even if you have to wait a few extra months, it’ll be worth it.

Remember, you could be rejected by the first lender you approach. While this may be disheartening, you shouldn’t automatically apply again. Go away and spend some time going over your credit file and try again later.

These are just some of the tactics that you can use to try and boost your chances of getting a mortgage. If you’ve got any questions or are looking for a property in Yorkshire, don’t hesitate to get in touch.

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