A new study has revealed that the East Midlands is one of the hardest places in the country to be accepted for a mortgage.
The University of Nottingham has produced data indicating that potential house buyers in the East Midlands are four times less likely to be approved by a lender for a mortgage. The study revealed that 37% of buyers in this region are turned down when they apply for a mortgage. However, Choice Finance mortgage brokers are urging people to consider how they can boost their chance of being accepted for a mortgage.
Credit rationing is the process of requiring higher deposits, higher interest rates and other practices, which some lenders may put in place for borrowers in regions with low acceptance rates. Making sure that you are on the electoral roll will help to improve chances of being accepted for a mortgage, as it confirms your identity. You should also ensure that previous addresses are recorded accurately, although a lot of previous addresses within a short time frame will raise an alert with the lender.
Paying bills in a timely manner and reducing debt will also help to increase chances of acceptance. Set up direct debits so that payments are made automatically, reducing the chance of missing payments. When you are looking for a property, try to avoid those that are unusual, like flats or apartments located over cafes or shops.
CeMAP mortgage advisors are able to provide advice to potential home owners on how to boost their chances of being approved for a mortgage.