Here are 10 quick tips to help you secure your mortgage and dream move:
- Be Prepared - Speak to a Mortgage Broker well in advance.
- Try not to apply for a mortgage whilst you are in a payment holiday - The lender may deem this as you being in financial trouble.
- Clean up your credit score - Make sure you are on the voters roll at your current address. If you are a first time buyer with no credit, maybe think about taking out a small credit card to build your credit profile. Make sure all your bills and credit is paid via direct debit. The worst thing you could do is miss a credit payment leading up to applying for a new mortgage.
- If you own Buy To Let Properties, try to have some savings in your bank account to cover rental voids and essential repairs. - Try not to have voids at the time of application. Make sure all the rental income recieved is easily traceable on your bank statements.
- If you are self employed and trade as a Ltd Company many lenders can lend based on your Net Profit and your Salary rather than your Dividends and Salary. This means you don't need to draw all your profit out as Dividend in order to get the maximum borrowing levels.
- If you do overtime as part of your job then make sure its consistent when leading up to applying for a mortgage. If you do not do any for a month then some lenders may not consider this income.
- Try to limit or rule out online gambling, lenders do not like this especially if its excessive.
- Speak to a broker and go over your affordability - This will tell you based on your current finances what your maximum or affordable mortgage would be. If everything stacks up, you could ask for a decision in principle. This will involve a credit check and affordability check with a mortgage lender. If agreed you can have more confidence when making an offer on a property with an estate agent.
- If you are looking to buy an investment property, then research is key - Look for areas and properties which offer a high rental yield. Rental yield is the return a property investor is likely to achieve on a property through rent. It is a percentage figure, calculated by taking the yearly rental income of a property and dividing it by the total amount that has been invested in that property. We have many clients currently buying investment properties in areas such as Leeds, Birmingham and Hull. All of which offer much better yields compared to London and the south of England. Buy to Let Mortgages tend to require a minimum of 25% deposit plus the higher additional rate of stamp duty.
- If you are buying a family home don't forget to protect it - Simmonds Mortgage Services will put forward a package to protect your income in the event of injury or illness, life insurance to cover the mortgage and also critical illness cover to help ease the financial burden should the worst happen. There is no point spending hundreds or thousands on your dream home if you don't protect it.
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Your home may be repossessed if you do not keep up repayments on your mortgage
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.