If you are looking to get on the property ladder, chances are that you have looked at mortgages already.
As you would agree, they can be confusing and there is always the fear of going with the wrong mortgage plan or not getting approved at all.
Here are top mortgage tips that can guide you.
- Get mortgage planning advice where possible. It is the surest way to address all your concerns and knot off loose ends.
- Before you file an application, be sure you have all the facts. You can’t chop and change the application at will.
- Mortgage applications can be approved if you apply in conjunction with someone else. Joint mortgages are huge commitments so don’t take this decision lightly.
- The bigger the amount of money you have as deposit, the higher your chances of having an application approved.
- Your status as self-employed won’t prevent you from getting mortgage as long as you can show up to 3 years worth of account showing sustainability.
- Similar to the above, your proof of earnings as an employee is vital to your mortgage application. Be ready to show at least 6 months worth of proof.
- If you already have a bunch of debt lying around, it becomes harder to secure mortgage. Spend another year or two on clearing up credit card or student debt before application.
- Don’t quit your job before an application. Lenders will take a look at how long you have been employed in the review stage. You will be best served staying a bit longer in the role until the mortgage is approved.
- Mortgage calculators are good and can be found online but the numbers are only suggestive. Only your provider can determine exact repayments and interest rate payments.
- Check your credit score and improve where necessary.
- Don’t underestimate expenses. Apart from the actual mortgage, you will still need to pay utility bills, council tax, insurance and more. Don’t forget to work these into the calculations to determine affordability of a mortgage deal.
- Don’t be confused by freebies as they are often included in the total cost of your deal. So before you accept a mortgage deal because of cash rebates, free legal fees and valuation, work out how the incentives affect the cost.
- Find a mortgage that offers you the level of flexibility you need. Overpayment, underpayments and payment holidays are just some flexibility features that could come in handy over the term.
- Confirm the exit fees ahead of time if you want to keep the option of moving to another lender open. Providers that only offer an exit fee when you are about to make the change can deal you a nasty surprise.
- Shop around extensively. The internet has made it simple to do this on your own but you can also use financial advisors.
Would you add any more mortgage tips? What has worked for you so far?