Whether you are a first time buyer or looking to move home through using Quick Property Sale, make sure you prepare properly before heading out to get a mortgage offer.
Everyone thinks they have their ducks in a row, but use this useful mortgage checklist before you start asking for quotes and you will find your journey goes more smoothly and without those pesky property problems….
If you are a first time buyer, make sure you have saved enough deposit for the amount you want to borrow. For first time buyers this can be as little as 5% but the rule of thumb is that the more deposit you have, the easier (and cheaper) it is to get a mortgage. Make sure you have allowed for other costs related to a mortgage or re-mortgage such as surveys, conveyancing, stamp duty, mortgage application fee, insurance, removal costs. Have a look at this Moving Costs Guide.
Check your credit score before the mortgage companies do and get any corrections made as soon as possible. If your score is low spend a bit of time improving it before you apply for a mortgage. Soneone I knew once had a mortgage refused because the next tenant who moved into a rented house after they did, applied for a store credit account in the thier name, spent a load of money and disappeared. If it hadn’t been checked they would never have known!
Make sure you are on the electoral role where you live. If you haven’t ever voted get registered now. Ask your local authority.
Manage your credit card profile. If you haven’t had a credit card before – get one. Apply and use it for small purchases, paying it off in full each month. If you have one or more cards, pay them down as much as you can and never miss a payment. While being in debt shouldn’t mean you can’t get a mortgage, being unable to manage your debt will.
See the Quick Property Sale can I get a mortgage if I am in debt?
Close any unused accounts, credit cards and store cards. The mortgage company will look at the total amount of credit available to you, whether you use it or not. If so, it is time to cancel those old accounts.
Reduce your monthly spending to show you can still afford mortgage payments even if interest rates went much higher. Mortgages are a long-term commitment over many years. Lenders need to look at affordability checks to see if you can still make your payments should they rise significantly.
If you are a first-time buyer, check which government home ownership schemes are open to you, such as Shared Ownership. The Help to Buy equity loan scheme closed to new applications in 2022 and ended in March 2023. Look out for the help to buy schemes offered by housebuilders in your target area and ‘Help to Buy’ schemes.
You can also read the government advice on affordable home ownership schemes.
If you are renting check out the rental exchange initiative which uses the fact that you pay your rent on time to boost your credit score!
Don’t use your overdraft facility. Or if you do, don’t use it every month. Back to the affordability argument….
Have all the paperwork ready. Although lenders requirements change you will probably need the following:
– Passport or driving licence
– Bank or utility bill at your current address
– P60 for the last couple of years
– Three current payslips
– Proof of any other sources of income
– 6 to 12 months of bank statements.
If you are buying with a partner or friend, make sure they have done these too.
That’s about it for now, and contact us if you have any questions using the contact from on the website or email info@quickpropertysale.uk