There are simple things you can do to boost your chances of obtaining a mortgage and securing best rate possible.
Lenders all look at your income and expenses to make sure you can afford a mortgage and your credit history to see how you conduct your finances.
Top of the list is to make sure you are on the electoral register; all lenders look to this to start checking your background.
Make sure your driving licence, bank statements and bills all use the same correct address.
Keep copies of your payslips, bank statements and utility bills. Usually as PDFs or scans of actual hard copies.
Screenshots will not be acceptable to any lender for any document.
You will normally be asked for 3 months payslips and 3 months bank statements.
Keep records for any deposit you are saving up for, lenders like to see current statements and historic ones proving the accumulation of your deposit.
Your solicitor will also ask for proof ID, address and deposit savings.
Keep an eye on your credit usage. It’s good to have a proven records of credit payments it proves you can manage money but don’t go overdrawn, don’t use up all your credit card limits and never take out a pay day loan. Avoid using lots of ‘pay in three’ type credit arrangements at once. Obviously keep up to date with all your commitments.
Sometimes clients say I have no credit at all and should I take out a credit card. The answer is yes to give lenders proof of your ability to manage money but don’t go mad. The best practice is to open a credit card but only buy things you would normally buy anyway, such as food or petrol, and most importantly pay it off each month.
If you have outstanding credit and need to pay it off to improve affordability, then talk to us – some lenders will accept your intention to pay off credit and make allowances in their calculations but others won’t and assume the credit payments will continue regardless.
The information and guidance provided within these newsletters is for information purposes only and does not constitute financial advice. Any financial decisions should be made based on your individual circumstances and objectives, and you should seek professional advice where appropriate.
