If you’re a first time buyer looking to get onto the property ladder your main focus is probably raising a deposit. And rightly so. The bigger the deposit you can put down the cheaper your mortgage will be. If you have a large deposit you’re deemed less risky and therefore lenders will look upon you more favourably. However, there are other steps you can take to improve your chances of getting a mortgage too.
Boost your credit score
Your credit score is important. Lenders will use it to determine how you manage your finances and how you’re likely to cope with a mortgage. Yet, despite how vital it is when it comes to seeking a mortgage or a loan, most people have no idea what their credit score is or if it’s causing them problems. Start by checking your score using a credit reference agency. Most lenders use Experian or Equifax so these are good options. If your score is not looking great take steps to improve it. Cancelling any credit cards you don’t use and making sure you’re on the electoral register are good starting points.
Reduce your debts
A mortgage is a big commitment and your lender will want to know that you can manage your finances well enough to repay it. If you’ve got lots of debts your lender may think you’re unable to manage. Furthermore, having lots of outgoings will seriously affect your affordability. Where possible, pay down any debts you have before applying for a mortgage.
Prove your income
If a lender is giving you a huge sum of money it wants to know you have the means to repay it and that means having proof that you have a regular income. Your lender will probably want to see six months of banks statements clearly showing your wages being paid in to your account. If you’re self employed you’ll need at least two year’s of accounts. It’s helpful to use a qualified accountant to ensure your documents are all in order.
Get expert advice
Taking out a mortgage is probably the biggest financial commitment you’re ever likely to make so it’s important to get it right. Enlisting the help of a qualified and experienced mortgage broker, like the team at We Know Mortgages, will help to ensure you get the most appropriate deal for your circumstances. If you’re looking to take that all important first step on the ladder call in to our Piccadilly offices and see what we can do for you.