Obtaining a mortgage as a first-time buyer can be difficult, as lenders may view you as a higher risk. As this will be the first mortgage you have, a lender will not have any idea of whether you will make regular repayments.
One of the reasons why a lender may turn down a mortgage application is your credit record. Contrary to popular belief, not having any credit at all could result in your mortgage application being refused. Take on some credit and manage it responsibly, like a credit card you repay in full each month. This demonstrates that you can manage your finances sensibly.
It is possible to obtain a mortgage with only a 5% deposit, but it is likely vendors might view you as being a riskier borrower and may refuse your application for a mortgage. If you can save more, it not only reduces the risk for the lender and increases your chance of being approved, but may also give you access to lower interest rates. Speaking to a CeMAP qualified mortgage advisor will help you to find out more about mortgages, such as the different types and rates available.
If you are already a homeowner and are considering switching to a different mortgage, you may still face the possibility of rejection by the lender if you have insufficient equity in the property. Whether you are an existing homeowner or a first-time buyer, a mortgage advisor may be able to help you improve your chances of being accepted for a mortgage.
