Tips For Getting A Good Deal On A Mortgage
The usual advice when it comes to anything is “Shop around”. In the case of a mortgage this is especially important due to the fact that buying a house is one of the biggest purchases you’ll ever make and how you fund it is one of the biggest decisions which is why it is worth knowing these tips to help ensure you get the right mortgage for you.
Check your credit score
As with any other form of loan or credit your rating will affect the products you have access to. In some cases, the rating may not always necessarily be up to date. You can also affect it by adding yourself to the electoral register (even if you decide not to vote).
Check your maths
On a basic level, you need to be sure that you can keep up with any repayments. This means looking at your income and how much you will be able to cover in any given month as well as any additional payments you may need to make over the course of the month (eg heating bills, running costs of a vehicle etc).
Naturally this can change over time (such as getting a higher paid job, downsizing a property etc) so it is always worth checking this and if necessary renegotiating. Mortgage calculators are available online and can make this process easier.
Furthermore, during the application don’t correct any figures or try to update them as this can delay the process as the lender reassesses you.
Make sure your job is secure
This may sound obvious but lenders want to be sure that you are in a secure job. Therefore, it is recommended you don’t apply for a mortgage until you have been in a job for at least six months as this will reassure the lender that your employment is secure.
Naturally once the mortgage is in place you can then change jobs but again this is something to be wary of should you ever need to renegotiate the terms of the mortgage.
On top of this they will want to say at least three months of payslips and/or bank statements in order to prove that you are capable of keeping up with payments.
Try to reduce debts
A lender wants to know that the person they are lending to is financially secure. Therefore, before you apply try to reduce any credit cards or other debts that may negatively affect your application.
Offer a decent deposit
While some lenders may have a minimum amount for a deposit if possible you should aim to get as much down as possible, not just what they require in order to secure the mortgage. If you think this may not be achievable on your own, consider clubbing together with someone else in order to get it.
Talk to a professional
While the information is there to go it alone if you want there is help available. At Larcomes Financial Services we have both the resources and the experienced professionals that can help guide you through what can be a difficult and stressful process. For more information contact us today!