The housing market has accelerated at unpresented rates following the start of the pandemic and whilst there is little evidence to suggest the market will slow and with mortgage rates record lows, it’s the perfect time to make the move.
Lockdowns have given families the opportunity to reflect and long for more space, gardens and possibly a change in location. The pandemic has also seen a shift with first time buyers jumping onto the housing market sooner than planned.
To ensure there are no delays in the buying process, property experts at Taggart Homes offer these top considerations to consider before applying for your mortgage to ensure you benefit from the best available deals.
- Stable earnings and outgoings
One of the most important elements when applying for a mortgage is being able to demonstrate your financial stability.
Lenders want to see reliable and predictable spending, which will help to access your ability to repay your debts comfortably and on time. In most cases, lenders look at three months’ worth of bank statements and analyse your regular expenses and outgoings, it’s important that all of your bills are paid on time.
- Check your credit file before the lender does
When applying for a mortgage your credit file will play a large part in establishing your eligibility and affordability.
Ensure you have all of the information available to you by checking your score and history with the key credit reference agencies in the UK – your mortgage advisor will be able to advise which agency is most relevant to you.
- Boost your deposit
LTV otherwise known as Loan-To-Value is a measure banks use to determine the deposit percentage vs how much needs to be lent by the bank. The lower the LTV and the higher the deposit, the better rates you’ll be able to achieve on your mortgage.
- Electoral Register
Ensuring you’re listed on the Electoral Register is very significant and often gets overlooked, especially when moving house. Registering to vote allows lenders to check your identity efficiently.
You can register on the electoral roll for free by simply heading to the UK Government website, but bear in mind it could take some time to be added and therefore be reflected on your credit report, so do this in plenty of time.
- Prepare your documents
When applying for a mortgage, the lender will ask for a number of documents dependent on your circumstances. It’s helpful to have all of these prepared and sourced beforehand to prevent any delays in your application.
Key documents you will need may include:
- ID documents and proof of address
- Three months’ payslips
- Three months’ bank and credit card statements
- Proof of bonuses and/or commission payments
- Proof of deposit (If the deposit was a gift, you may need proof of this in writing)
