As mortgage deals are at their lowest for many years, experts are saying that the biggest fear for 2017 is that the interest rates may start to increase.
To protect yourself from huge increases in monthly repayments, it is advisable to make sure you are on the best possible deal for your circumstances. However, since the recession, it is much harder to be accepted by lenders for some of the better deals. Preparation before applying may improve your chances of securing a low fixed rate deal.
Your credit score is a major factor for whether or not you will be accepted by a lender, both for a mortgage and any other form of credit. Spend some time looking at your credit report and correct any errors. In the months leading up to your mortgage application, avoid applying for any contract mobile phones, car insurance paid monthly or credit cards, as this will leave a footprint on your credit file and could impact on the application.
Make sure that the monthly repayments are affordable, not just at the current interest rate, but also at a higher rate. Lenders may assess whether you can meet the repayments if interest rates were at 6 or 7%. To ensure you improve your chance of acceptance, spend minimally during the months leading up to your application.
Lenders have varying criteria, and CeMAP qualified mortgage advisers have this information. Speak to an adviser so that they can lead you to the most suitable lender for your circumstances.
