Following the recent Bank of England interest rate rise from 4.5% to 5%, many potential buyers will be wondering whether now is a good time to buy a house, with constant changes across the whole UK property market.
Whether it’s a first home, an investment property, or a remortgage, the mortgage application process can seem overwhelming for buyers.
That’s why Claire Flynn, Confused.com mortgages expert, has provided the key dos and don’ts to consider when applying for a mortgage.
Do: Seek guidance from a mortgage broker
A mortgage broker can help you understand the options available to you, as well as guide you through the mortgage application process. Whether you’re a first-time buyer or remortgaging, a broker can provide expert insights and help find deals that you’re more likely to be accepted for. Using a broker could potentially save your significant money in the long run.
Don’t: Neglect Your credit score
Before even thinking about applying for a mortgage, it’s crucial to understand and, if necessary, improve your credit score. You can request your credit report from various online platforms to check for any errors or areas that need improvement. Remember, a good credit score can make the difference between mortgage approval and rejection, so it’s worth taking the time to check it and correct any issues you find.
Do: Review your finances
Lenders take your outgoings into consideration when deciding whether to accept your application. In the months leading up to your application, it can be worth reviewing your spending habits and cutting back where possible.
Don’t: Put incorrect or misleading information
On your application, make sure you are being honest and provide accurate information. Even minor mistakes or omissions can cause delays, or worse, rejection. Additionally, providing misleading information can lead to serious implications.
Do: Understand your budget
Before looking for a property, understand what you can afford. Make sure to consider your potential mortgage payments and other homeowner expenses such as insurance, taxes and maintenance costs. A mortgage broker can assist you in understanding how much you can borrow based on your financial circumstances.
Don’t: Forget to shop around
Different lenders offer different rates, terms, and requirements. Make sure to shop around and compare your options. An independent mortgage broker can save you time and effort in this step, as they have access to deals from a wide variety of lenders and can help you find one that works for you.
Claire Flynn, Confused.com mortgages expert said, “Navigating the mortgage application process might seem daunting, but it doesn’t have to be. Remember that preparation is key, and understanding the process beforehand can save you from potential headaches down the line.
“There are steps you can take yourself before you get started. Assessing your budget and credit score and maintaining financial stability are important ways to increase your chances of approval.
“Seeking the help of a broker is the best way to approach the mortgage application process with confidence. A mortgage adviser can provide advice and guidance, and help you apply for deals you’re more likely to be accepted for.”
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