How do I improve my chances of getting a mortgage?

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House prices are usually lower in January/February so right now is a good time to get your finances in order and be ready to buy!

Check your credit score, ensure it is up to date

  • A credit score or credit report will tell you if you would be accepted for any borrowing by a lender.  If you apply for your credit score and it comes back with a low score, you need to apply for your credit report to find out what is causing it.  Go through it carefully.  If there are any discrepancies, write to the companies involved, explain the issue – they may be able to take the default from your score.  Click here to improve your credit score.

Get your finances in order

  • Enlist the services of a good mortgage advisor/broker (this is optional).
  • If you are considering changing jobs, change at least a year BEFORE remortgaging and NEVER at the same time as remortgaging or just prior to remortgaging.
  • Keep your bank account in the black and do not spend what you don’t have.
  • If you have credit cards, don’t just pay the minimum payment.  Pay off as much as you can to get the debt down.  Click here to find out ways to lower your outgoings.

Repay your debts

  • Go through your debts, write them down with the amount owed for each debt.
  • Go through your expenses (household and work related).  Work out how much you can live on each month.  Divide the rest between your debts.
  • Contact each debtor/company/person that you owe, advise each one what you can afford to pay back.  Click here to find out ways to deal with your debt.

Overpaying on your currently mortgage

  • If you can, overpay on your current mortgage if you already own your own home.

Ask your parents for financial help with your deposit

  • This should really be used as a last resort but this is becoming more frequently used as an option for the younger generation to get on the housing ladder.

Consider a help to buy scheme

For details, click here.