Here’s a quick reminder of your mortgage ready tips for the year ahead:
Advice - Choosing the right mortgage deal can be a challenge, which is why we’re here to advise and support you throughout the process and help you find the right deal for your circumstances.
Budget and Be prepared – Go through your bank statements to see how much you have coming in each month and how much you’re spending. Close or cancel any accounts, subscriptions or memberships you don’t need. Before applying for a mortgage, be prepared, have all the correct documentation ready, including utility bills, your passport or driving licence, P60 from your employer, the last three months’ payslips, three to six months’ worth of bank statements or, if you’re self-employed, a statement of two to three years’ accounts from an accountant and tax return form SA302.
Credit score - The higher your credit score, the more likely you are to be offered a competitive mortgage deal. Improve your credit score by checking you’re registered on the electoral roll, paying your bills on time, and paying off your credit card balance monthly.
Deposit and Debt - To increase your chances of being offered a mortgage on favourable terms, save as much as you can for a deposit before you apply. Open a dedicated savings account with a competitive interest rate to help. Lenders will look at how much debt you have, including whether your current account is in credit. They will also look at whether you are only making the minimum repayments each month as this can indicate you’re living outside your means. Get your debts paid off to stand you in good stead.
#ForFinancePhonePhil
Replies
Great tips there Phil
I would like to add - if you are a sole trader or partnership, please be aware the mortgage company will look for the most recent set of accounts possible (with some not accepting accounts that are more than 6 months old), so if you are thinking of re-mortgaging or moving house, then it might be worth speaking to your accountant and letting them know in advance that you may need a set of accounts prepared sooner than usual.
The lenders are often looking for much more than they used to. They are looking at things in much more detail at the moment as well unless it is someone purely looking for a better rate from their existing lender.
Good tips Phil!
Thanks Andrew...shaping up to be our busiest January for mortgages which is great!