What can I do to get myself mortgage ready?
There are steps you can take to speed up the process so you are ready for your first mortgage or a remortgage.
Being prepared some months in advance, you will be in a much stronger position and your mortgage could go through a lot. more quickly.
When applying for a mortgage or re-mortgage, your lender will do an affordability check to ensure your finances are in order and ultimately determine if you are trustworthy enough to borrow money.
The tests will include an analysis of your income and your expenses. It is important that you can demonstrate that you can manage your finances properly.
LOANS - Try and pay them off before you apply for your mortgage and, avoid taking out more loans in the meantime.
BILLS - Pay ALL your bills promptly. This will prove your credibility and financial independence.
SAVINGS - If you can track regular savings on your bank statements, it can help for a number of reasons. Not only can it show where the money for your deposit came from, but it can also prove to your lender that if you can save £ 400 a month, for example, that is money that can be used to pay off your mortgage.
WORK - It is recommended to stay in the same job for at least six months. This will prove that you are earning a steady, stable income every month, and are less likely to lose your job on the spot than a probationer. You will need to provide payslips for the last 3 to 6 months.
ELECTORAL ROLE - Getting registered on the electoral roll is a simple but effective task. Also, make sure that any receipts you have are shown as your current address, so that everything is easy to trace.
YOUR CREDIT RATING - Responsible use of your credit card can help you improve your credit score by showing that you can take care of your finances and pay off your outstanding debts over a period of time. Just be sure to register the card at the address where you actually live. You can even connect it to your direct debit card so you don't have to worry about forgetting to repay it every month.
CUTBACKS – Are you spending on items you do not really need? Reducing your spending levels on items like Sky TV, Netflix and the gym/spa can both help you save and protect your credit rating.
GET HELP - Speak to your personal adviser team at Reach 4 Mortgages about how you can improve your financial position and get yourself mortgage ready. With a network of over 12,000 products, we can help you find the right mortgage that suits your exact needs. Just give us a call today and we can arrange either a face to face or telephone appointment at a time that is convenient for you.