Are you saving for a large mortgage? Take these key things into consideration before you make the jump and apply for yours.
First and foremost, it’s a good idea to register to vote. If you are not on the electoral register then you will find it harder to apply for a mortgage, as lenders use the electoral register to undertake their identity checks.
Before applying for your mortgage, it’s vital to do some prep work. Your lender will decide whether or not you are a strong candidate to lend to based on your credit score rating. Before you apply for your mortgage, take the time to research your personal credit rating; this can be easily done through a number of credit score rating agencies, with many providing this service for free.
A credit score is a record of all of your credit information, including your payments (or lack thereof) on overdrafts, mortgages, utility and phone bills, and credit cards. Your credit rating will stretch back for the last six years. Credit Expert and Clearscore are two examples of credit rating companies that will provide you with a comprehensive credit record.
It’s important that you have access to your credit score before your lender does, so that you can correct any mistakes on your credit information, or at least provide a reasonable explanation for them. Your credit score is key to borrowing a large mortgage, and taking a few minutes to knowing yours will be time well spent.
Also, take the time to make sure that any past flatmates or partners poor credit history are not impacting your own; you can write to credit agencies to let them know that you no longer have any connections to the people in question.
Be good with your money
Lenders will want to see that you can be trusted to pay your mortgage back, so you need to prove that you are a safe bet by managing your money well. Lenders will often ask for copies of your bank statement in order to see how you spend your money. Are you thrifty or frivolous? Lenders will be looking for the former, so make sure you get into good habits now. By the time you apply you’ll have proof of your dependability.
In addition, make sure that you pay all of your bills on time. It will make you appear trustworthy and reliable.
If you’re applying for a large mortgage, you should save up a large deposit. Larger deposits have lower interest rates, so it works in your best interest to save as much as you possibly can. There are a number of ways to boost your saving power. Investing in a Help to Buy Isa is an excellent place to start, as is working out a thrifty weekly budget.
Save for your dream home
A large mortgage will buy you a beautiful home all of your very own. By ensuring that you save well, spend smart and come prepared to your first meeting with the lender or broker, you’ll give yourself the best possible chance of making your dreams into reality.
For more financial advice take a look at our older blog posts. If you’d like to discuss your options with one of our advisors, then just get in touch with a member of our friendly team today.
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Written by: Editorial Team