When you decide to buy a home, applying for a mortgage is one of the first parts of the process. This can also be relatively stressful, as lenders have varying lending criteria, and whether you can fulfil those requirements can determine whether your loan is approved or not.

A lender will want to know that you are able to afford to make the repayments every month, which is why they conduct credit checks. The lender will calculate a credit score based on the information that you provide on the application form, an online credit report which outlines your credit history, and any activity which you have previously had with the lender.

The Financial Conduct Authority also introduced affordability checks, which will look at income and expenditure, so that the lender knows that you can afford the monthly repayments, even if the interest rate increases.

You will also need a deposit, which can be as little as 5%, but the larger the deposit will often mean a preferable rate of interest. There are also various types of mortgage for a borrower to choose from, and the loan chosen may depend on individual circumstances.

Mortgage advisers are particularly helpful when you are considering which type of mortgage is most suitable, as they have studied on CeMAP courses and are aware of the pros and cons of each. Various mortgage deals also have different costs attached to them, like a mortgage fee, which can increase the amount borrowed over time.

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