Simmonds Mortgages

Mortgage Brokers covering Berkshire and beyond

Call: 01344 225 149 or 07979 690 056

Improve Your Mortgage Chances

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How To Improve Your Mortgage Chances For Your Residential Property

A mortgage application can be a difficult process from start to finish.

There are many factors and variables that will influence the outcome for example the type of property, employment situation as well as your current commitments such as outstanding credit cards and loans.

Just to make things a bit more difficult each lender has their own criteria for assessing mortgage applications.

Income

It is more likely for lenders to consider your application if you have been in a long duration of employment and usually its set at 3 months as a minimum or if self-employed have two years accounts history, showing net profit.

If you have recently started employment and you are in a probationary period, this may affect the use of some lenders.

Lenders will usually offer around four-and-a-half times your salary.

Electoral register & voters roll

Although obvious lenders will always carry out a check to see that you are registered to vote at your current correspondence address and is one of the main ways, they check your identity etc.

If you are not sure you are registered, you should contact your local council office. 

Credit History

Naturally, the better your credit history, the better chance you have of the lender accepting your application.

Lenders tend to use either Experian or Equifax when they carry out the credit check during the decision in principle.

It can be a good idea to check your credit report first for free with one of these agencies to make sure there are no errors which could hinder your application.

Any history of missed payments or bed debt will also affect the choice of lender and may increase the interest rate.

Commitments

On one hand it is important to build up a credit profile but on the other hand you have to be cautious of your debt to income ratio, when these figures are run through a mortgage affordability calculator they will play a huge part in how much you can borrow and if your credit commitments such as loans and credit cards is high in comparison to your income, thy dramatically reduce the loan you may be eligible for.

Deposit

The larger the deposit you have available the lower the loan you will need which would then help to increase the chance of the application becoming successful and will also open up lower interest rates for you.

For a residential purchase the minimum deposit needed is 5% and for a buy to let purchase it is 20% (with these lower deposits usually comes higher rates)

There is also the popular option of parents or grandparents raising capital from their homes to help with children or grandchildren's deposits.

Preparation

When it comes to a mortgage application, always be ready to gather relevant documentation for the bank, building society or a mortgage broker as you will be asked for bank statements and payslips usually going back a minimum of three months as well as copies of ID and proof of address.

 

We can help you!

If you would like more information or help with your mortgage please call us on 01344 225 149 or 07979 690 056. Alternatively please send us an email at info@simmondsmortgage.co.uk

Your home may be repossessed if you do not keep up repayments on your mortgage

 

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Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.

What our Customers Say...

Your home may be repossessed if you do not keep up repayments on your mortgage.

Simmonds Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Registered Office: Simmonds Mortgage Services Ltd, Lexham House, Forest Road, Binfield, Berkshire, RG42 4HP. Registered Company Number: 1152 8784 Registered in England & Wales.

There may be a fee for arranging a Mortgage and the precise amount will depend on your circumstances. This will typically be £399.00 paid once the mortgage offer has been confirmed.

There may be a fee for arranging an Equity Release or Lifetime Mortgage and the precise amount will depend on your circumstances. This will typically be £799.00 and is due on completion of the mortgage.

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