10 tips to get your mortgage RIGHT

A mortgage is a massive financial commitment, for most of us, it's the biggest financial commitment we'll make. Because of the amount of money involved, it's more important than ever to get it right. You want to improve your chances of being accepted so it all goes smoothly when you come to apply.

The start is your finances

First things first, you're going to want to work out what your budget is. How much do you think you can afford to pay towards a mortgage each month? Bear in mind that you'll need to cover your purchase costs and all of the other outgoings you might not currently be paying for – Utility bills, maintenance, home insurance and everything in between.

Your mortgage payments depend on how much you borrow, at what interest rate and for how long. More on that later.

Your credit score matters. Kind of.

It's not necessarily the number on the screen that a mortgage lender will look at when they decide whether or not to lend to you or not – It's the data that makes up your credit score. Things like whether you're registered to vote, what your credit limit is, how long you've held your current account and whether you've missed any payments.

The good news is that different lenders take different approaches to all types of credit data, so there's likely a lender that will fit your circumstances no matter what's on there (within reason, of course). For example, some lenders will see you holding a credit card balance as a bad thing – signalling that you don't have enough money to get you through the month. Others will see it as a positive, you're managing your money well by paying it off each month.

Debts don't help

Typically lenders don't want to see excessive debts, overdue credit card balances or expensive loans, if you're in a position to do so, you should reduce any debts you can before you apply.

Staying in the same job works wonders

The biggest risk to a lender is that you don't pay the mortgage, so naturally, they want to make sure you're in the best position to make your repayments as possible. A potential lender is going to want to see that you've been with your employer for a decent length of time before they're going to lend you thousands of pounds.

If you're thinking of switching jobs, it might be worth waiting until your mortgage has gone through first.

Most lenders won't rule you out completely if you're new to your employer, so it's still worth assessing your options for sure. If you're in your probationary period, you should check with the lender what their requirements are before going ahead with your application.

The bigger your deposit, the better

This sounds like common sense. Bigger deposit = less money borrowed = lower monthly repayments

That's not just all though, lenders reserve their best deals for those with a bigger deposit as those borrowers present less of a risk if the lender needs to repossess the property.

Buying with someone else can make the process easier

This one isn't for everyone, but if buying alone is completely unachievable you might be able to boost your chances of being accepted by buying with someone else. Especially if they have really good credit or a higher income than you do.

Bear in mind though that this is a huge commitment, and you should be sure to work out what would happen if one of you wanted to move out.

Don't chop and change your mortgage application once you've made it

Of course, if there are any errors these will need to be ironed out as a matter of urgency. However, any unnecessary changes once you've already got your mortgage offer in the bag, any changes will need to be re-assessed so this could cause unnecessary delays in the mortgage process.

You'll need proof of income

As with all credit, lenders will need to be sure you can afford the mortgage you're committing to. Most of the time lenders will be happy with 3 months' payslips but some lenders will also want to see a copy of your most recent P60. On top of this, you'll be expected to show three months of bank statements so that your outgoings can be assessed too.

If you're self-employed, you'll need your accounts

Getting a mortgage when you're self-employed can be hard – especially if you've only recently gone it alone.

Most lenders will expect to see three years of accounts. This could be either your SA302 form or your full company accounts depending on your setup. Some lenders will look at cases where you have one or two years of accounts, but you'll likely be paying a higher rate and your case will need to be watertight.

It pays to get help

When you come to get your mortgage, it always pays to get help from a broker. Unless of course you've got the time to make and attend appointments with each and every lender there is on the market. Your broker will work with you to see exactly what you qualify for before making an application with a lender, making sure you've got the best chance of being accepted. If there's a lender that you don't qualify for, your broker will know straight away so there's no wasted time.

As always, we'd love to speak with you about your mortgage requirements. Get in touch with us here, or book a free call to chat with a broker here.