Applying for a mortgage is a daunting thing, especially if you have never before made a mortgage application. Even if you do have prior mortgage application making experience though, because the industry is ever changing and property isn’t something all but developers do very often, it can still prove a mammoth task. Hence, below are five ways in which to better your chances at having a proposal approved.
Get Saving
Saving is perhaps an obvious means of one day becoming able to purchase that first time or even dream home. Whilst obvious, it is though necessary, at least for the vast majority of us. Hence, it is well worth taking the time to make the point; saving is by far the most sensible means of one day owning your own home, not least because the ‘cash poor’ stand to pay far higher mortgage interest rates, if they manage to secure a mortgage at all, as the Gaurdian Newspaper website reported as far back as 2010.
Repay Any Outstanding Debt
These days, many of us have debts, or have had. Therefore, few if any mortgage providers will discount or refuse a mortgage application on the basis of previous or even current debts, provided repayments are being made. That said, applying for a mortgage whilst you have outstanding debt can negatively impact upon your chance of having a mortgage application approved and as well increase what your premiums.
Whilst having incurred debt itself is not necessarily an indication that a person or couple cannot manage their finances, having to fork out for monthly debt repayments does increase a borrower’s probability of becoming unable to keep up with the added pressure of mortgage repayments. So, to stand the best chance of not only having a mortgage approved, but of securing the best mortgage, it is advisable to clear any outstanding debts before applying, when possible.
Look Into Help To Buy Schemes
Help to buy schemes can prove not just a financially savvy means of purchasing a home, but for first time buyers often the only means of getting onto the property ladder.
UK government run help to buy schemes operate by initially reducing the deposit amount charged to secure the purchase of a home. Often restricted to first time buyers, the idea is that buyers stump up 5% of a property’s value to use as a deposit and the government will pay the remaining amount in the form of a loan, enabling young couples especially to purchase a home in which to begin and / or raise a family. To learn more about the Help to By Schemes currently in operation, visit the Official UK Government website or, alternatively, consult and speak with a mortgage broker.
Improve Your Credit Rating
Once upon a time people were wary of checking their credit rating too frequently as doing so could, at worst, negatively impact upon it. These days it is becoming more accepted that people wish to keep up to date with where they stand and what their credit rating is. The fact is, the reason people are eager to keep up to date with their credit rating because they are simply diligent and wish to keep on top of things.
Understanding this, a number of companies have begun 2016 by introducing and advertising their credit checking services. Whilst this is good news for those hoping to compile a solid mortgage application this year, it is advisable to first take a look at the advice offered by the Money Saving Expert website, if you have opted to forego the support and guidance of an accredited mortgage broker.
As an impartial and expert source of advice, the Money Saving Expert website is an invaluable place to turn when compiling a mortgage application. Not only do they illuminate individuals as to the realities surrounding those offers of ‘free’ credit rating check services, their website also features a wealth of mortgage related and up to date advice on how to secure a mortgage and present yourself to potential lenders.
Use The Services On A Mortgage Broker
There are numerous reasons why using the services of a mortgage broker, such as our expert team here at Search Mortgage Solutions, is by far the best advice out there.
The fact is, mortgage brokers are experts in all things mortgage related. Hence, their knowledge concerning mortgages and mortgage related issues is not just extensive, but up to date. Because the mortgage industry is ever changing, keeping up with what is what can prove too much for many, especially first time buyers. So, to ensure you are getting the best deal and putting forward the best application possible, it is prudent to at least consider consulting an accredited mortgage broker.
For more and more detailed information as to why it is advisable to turn to an accredited mortgage broker ahead of making or submitting a mortgage application, visit the Guardian Newspaper website, which features an insightful article on why the majority of successful mortgage applications are in 2016 brokered ones.