Date Published 06 March 2018
• You're not going to fit into every lender's criteria. If you do then you should be accepted quickly and if not then you won't be. Lenders will look at a few things to decide;
o The size of the loan you'd like to take
o How much deposit you've saved
o Your employment status & income
o Your credit rating
o Your outgoings
o Your existing debt
• You should check your credit score before the lenders do & correct any errors if you find them. Knowing the in's and out's of your credit score is essential before applying for a mortgage. If your credit score needs a boost then perhaps focus on that before applying for a mortgage.
• Did you know an ex partner's credit score can affect yours? If you've had joint credit with someone else who has less than desirable credit then you should make sure to de-link yourself from them because they could affect your chances of getting a mortgage.
• You should make sure to manage your available credit carefully. You need to balance between having the right amount of credit & not getting too close to your limits. You should aim to only use half of the credit you're allowed, that way you're never going to end up too close to or going over your limit.
• Make sure all your bills are paid on time. Any missed payments will be marked on your credit file and will count against you. You should set up direct debits to make sure you never miss a payment. You should also try and stay out of your overdraft if you can. You don't want to be seen as living on the edge. You should also try and pay off any unsecured debts.
• Before applying for a mortgage don't apply for any unnecessary credit as this could hinder your score and lead to rejection from lenders. The more searches for credit you have on your file in a short time, the less likely you are to be granted a mortgage. Many searches can lead to you being viewed as desperately seeking borrowing.
• Before applying for a mortgage you should cut back on your spending. Lenders will ask for lots of details about your outgoings and may even want to see bank statements to back this up. Lenders just want to check that should your mortgage rates increase you'll still be able to afford your payments.
• If you do happen to be rejected by the first lender you try don't automatically try again. You'd be best going away, checking over your credit file (could you have missed something?) and then trying again later. You don't want to be seen as someone desperately seeking credit.
• Lastly, save the largest deposit you can. Mortgage providers reserve their lowest interest for people with large deposits so you should save as much as you possibly can and get the best deal that you can.
These are just a few things you can do to boost your chances of getting that mortgage and getting the best rates possible.
