Three steps to securing a mortgage

March 19, 2016 by Brendan O'Neill

Advice & Tips

Now that affordability tests are in place with lenders, first time buyers may find it more difficult to secure a mortgage for a home. Although interest rates have fallen to an all-time low, buyers will still be judged according to whether a lender believes they can afford the debt. Taking action now can help improve your chances of being approved for a mortgage.

Make sure your finances are in order well before applying for a mortgage, to maximise your chances of approval. Lenders want to be sure that you can afford a loan and won’t default on repayments, especially if you have a low deposit. Check your credit rating and take steps to improve, including applying for any incorrect entries to be amended.

At least six months prior to applying for a mortgage, reduce spending so that you have a healthy bank balance. Clear all debts if possible and make sure outgoings are minimal. Don’t take on other debts just before asking for a mortgage, as this will affect the amount you can borrow to buy your first home.

All lenders have different lending criteria, which can make it difficult to know which to approach. A mortgage adviser who has been CeMAP trained will be able to advise the most suitable lender for your particular circumstances.

Preparation before you apply may make it easier for you to obtain a mortgage, especially if you don’t have a large deposit. A mortgage adviser is able to offer guidance and help you find a mortgage.