It can be said that the property boom everyone was talking about in the past is no longer in effect – but buying a piece of property now need not be difficult, either. Although securing a mortgage nowadays is no longer as easy as looking for lenders online and filling in an application form, there are still ways in which you can enhance your appeal to lenders without having to go too much out of your way.
Whether you are a first-time property buyer, are looking to re-mortgage your property, or are seeking to invest in new property, you can boost your chances of acquiring a mortgage in three simple and easy ways.
Enhance your appeal to lenders
So how do you enhance your appeal so lenders will not think twice about approving your mortgage? First of all, what you can do is make sure that you are a duly registered voter and your address is in order. One of the things lenders do is checking your address against your name, and if it matches, then that is already the first step. Your credit rating should be in order as well.
If you don’t have a credit card yet, it might be a good time to apply for one, spend money on it, and then pay back your debt. Lenders will take more notice of individuals who have a history of being able to pay back their loans and debts on time. The point is to appear as stable as you can, as lenders prefer security and stability. Stay in the same job and don’t quit (even if you have been planning to do so), don’t move to a new address, and show them a steady and reliable source of income.
Make sure you know how much to borrow
If you want your mortgage to get approved, it pays to know exactly how much you would like to borrow. Do some calculations and come up with the right amount for a mortgage and try not to change it at the last minute. Even adding a few thousand pounds after you’ve already sent in your application could make a less-than-stellar impression.
You might also want to do some calculations on the percentage of the value of your property versus the mortgage, also referred to as loan to value. Remember also that some of the most ideal mortgages are more readily available to those who can pay a bigger deposit (40 percent at the minimum). You should also keep in mind that better mortgages can be had for those who opt for a shorter mortgage period, such as two years as opposed to four years or more.
Under new regulations, the majority of mortgages taken out will have to come with financial or mortgage advice from mortgage advisors. Whilst you can choose to receive advice from a bank advisor, it might be better to choose a mortgage broker since the bank advisor may only be able to offer you their bank’s own products and services, while a mortgage broker will be able to offer you something from the entire market. The mortgage broker’s role not only extends to giving advice – they can also help you through the whole process, which can also include inside knowledge on the kind of applicant lenders may or may not approve.
If you’re looking for a mortgage broker Colchester has plenty of choice, such as Flagstone, which offers excellent access to more selective mortgage deals and may even be able to find a lender for such cases as weak credit ratings or self employment. A reputable and knowledgeable mortgage advisor in Colchester can help take your mortgage application to the next level.