Buying a house isn’t a process to rush into. For some, it’s a time to redecorate and improve their properties to maximise their curb appeal. And for others, it’s a perfect time to sit down and address the financial side. And with the right approach, it’s entirely possible to get on the housing ladder.
Look through a lender’s eyes.
One of the ways all lenders will investigate whether you suitable for a mortgage is by taking a look at your credit report. They want to know about your repayment history, and a report will give them details about the accounts you’ve opened up over the past six years.
They’ll look at your credit cards, loans, overdrafts, mortgages and some of your utilities.
They don’t use specialist software for this. They use the likes of Experian, Equifax and TransUnion, which can be accessed by anyone with the right information. Including you. And as it happens, you can use these sites to get a free credit report.
Check it, and you’ll have a good idea what a mortgage lender will see when they start researching your history.
Vote now, and vote early.
Don’t worry, we aren’t trying to slip a political message into this article. But as strange as it sounds, not being on the electoral roll will make it difficult for you to get a mortgage.
Why? When lenders carry out their various identity checks on you, they’ll use electoral roll data.
If you aren’t sure, your credit report should tell you of your electoral roll status. It can take a month or so to get on the electoral role, so make sure you do this as soon as possible.
Close your accounts
One thing that makes lenders twitchy with the purse strings is how much access to credit you currently have. If you’ve got several credit cards, or a large overdraft that you don’t need, consider reducing the limit, or closing some of your cards.
If you have debts, consider using your savings to settle them.
As part of any mortgage application, a lender will want to see how many debts you currently have. And the amount of debt will affect how much they’re prepared to lend you. If you’re in a position to do so, it can be worth clearing some of your debts with money you’ve saved for a deposit. Not only will it reduce the amount of interest you’re paying on your debts, but it will make you a more attractive proposition. Of course, this is a decision that requires some tactical considerations, particularly if you need to dip into your deposit money. Speak to us, and we can help you plan how best to go about clearing your debts.
Don’t be afraid to shop around.
For most people, a mortgage is the largest financial product they will ever invest in. And like with any large purchase, it’s important to shop around, and consider your best options. After all, lenders aren’t doing you a favour, they’re offering you a service. It’s important to find the mortgage the works best for you, and fits in with your circumstances.
Are you looking to get a mortgage? At Evolve FS, our fee free advice service offers guidance on every step of the process. Contact us for an informal chat, and let’s get you on that housing ladder.