But don’t worry, as mortgage expert and managing director of KIS FinanceHolly Andrews has rounded up some of the best advice.
From the use of a mortgage broker to paying outstanding balances, Holly has all the tips worth looking into.
Find out what are the best tips for getting a mortgage.
Tips for getting a mortgage:
1. Be selective with other loan applications
If you have difficult credit searches on your credit file, it could temporarily lower your credit score, which will affect your chances of getting the rates you will be offered.
This could give lenders the impression that you have poor financial management and lead them to refuse applications due to the uncertainty of repayment capacity.
But if it’s something you need to do, a single application shouldn’t make too much of a difference depending on credit and affordability.
However, Holly absolutely suggests that you should avoid payday loans.
In order to get the best chance, you should avoid credit inquiries at least three to six months before applying for a mortgage.
2. Use a mortgage broker
An experienced independent broker could really increase your chances of getting a mortgage, especially if you’re self-employed or don’t have a great credit history.
Brokers will research the market for you, helping you get the best deal and saving you time, plus they’ll guide you through the process.
Some brokers don’t even have fees because they are paid by the lenders, which means you save money and get a lot of help.
3. Check your credit report and fix errors
In the six to twelve months before applying, you will need to check your credit report and make sure it is in good condition.
You can increase your score by verifying that you are on the voters list and checking for any mistakes that may have been made.
Check that there are no credit applications you haven’t made and that all credit limits and outstanding balances are correct.
If they are incorrect, it may appear that you are using more available credit than you are actually using.
4. Repay outstanding balances
If you have credit card balances or loans that you can afford to pay off, you should.
Fewer loans on your file will look better to the lender and will also lower your expected monthly expenses.
Make your mortgage payments more affordable and you can also qualify for better rates.
5. Avoid changing jobs before applying
Lenders want someone with a secure, stable income, so they can’t lend you if you’ve recently changed jobs and are on probation.
Try to avoid changing jobs within six months of applying, but if you have no choice, wait until the end of the trial period if you have no choice.
6. Sever old financial ties
If you have had previous financial ties with former partners, you will need to ensure that all accounts have been closed.
Whether it’s a joint bank account, a credit card, a loan account that you both have access to if you’re no longer using it together, cut all ties and close them .
By consulting your credit file, you will be able to see if you have financial ties with a person.