Firstly, a big congratulations on the start of your property journey – exciting times!
Looking into purchasing your first property can be somewhat daunting. With many years’ experience under our belt, we thought it would be useful to share common hurdles and how best to approach them to improve your chances of securing your mortgage…
Start saving and adding to your deposit as early as possible. Typically, the bigger your deposit, the better rates will be available to you. 5% of the property price is a good aim. Be aware that there are other fees that will potentially need paying on top of your deposit, examples of these are listed below.
It is vital that you know your budget. You need to know what you can realistically afford to borrow and how that interprets into monthly costs. Completing an affordability check with your mortgage broker will provide you with all the necessary information, including a mortgage illustration.
3) Credit File
Unfortunately, this is something that is often forgotten in the lead up to the decision to purchase a property and can potentially become a setback. The cleaner your report and the better your score will generally mean the better the mortgage rate you’ll be offered. A few tips on getting and keeping a good score are;
If you find yourself in a position of wanting a mortgage but your credit report/score is poor, we may still be able to help. To read more about mortgages with adverse credit, please click here.
4) Required Documents check
Again, this is something that can quite easily be overlooked and has the potential to cause delays. A few things to make sure are all in order before applying for a mortgage are;
5) Obtain Decision in Principle
Getting a Decision in Principle before looking for properties will mean that, when the time comes to make an offer, you’ll be in a position to prove to vendors/ estate agents that a mortgage lender has pre-approved you, making you a favourable buyer.
6) Limit new credit applications
If you know you’re going to be applying for a mortgage imminently, now is not the wisest time to go looking for a new car on finance. Decisions like that will have a significant effect on a lender’s evaluation of your affordability and how much they would be happy to lend you.
7) Other Fees
It's important to account for other fees when you're saving for your deposit to avoid any nasty surprises of unexpected costs. Fees to consider are as follows;
So there you have it… we hope these tips and handy guide to ensuring mortgage success have been useful to you. If you have further queries then drop us a line and we'll be more than happy to help!
Need Financial Planning Limited is an appointed representative of Invicta Financial Solutions which is authorised and regulated by Financial Conduct Authority.
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