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01844 390910
info@bmimoney.co.uk
01844 390910
info@bmimoney.co.uk
Securing a mortgage is undoubtedly getting more difficult, first- time buyers have more to prove to lenders to secure great deals.
Read on to find out how to improve your chances of securing your first mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Click the First Time Buyer option in the top right
Time spent preparing your finances now will pay dividends in the future. We’d advise potential homebuyers to look at their financial situation and credit report as soon as possible. Improving your credit rating will boost your chances of securing a mortgage deal. If you find any errors in your credit report, tell the credit reporting company, in writing, what information you think is inaccurate.
Build a clear, consistent track record of positive money management.
To maximise the amount you can borrow, ideally you would have no debt. Debt will reduce the amount you can borrow. It’s not always possible to have zero outstanding credit but planning well in advance to reduce your borrowing will help. We don’t recommend taking out any new loans just before applying for a mortgage.
It is however good to have some credit, this enables lenders to track you and see that you have been making regular payments for a set period of time.
Some clients with a large amount of debt, kept up-to-date could have a better credit score than a client who has never borrowed.
Overdraft ?
Credit cards & store cards ?
Loans ?
HP Agreements (car / shopping) ?
Payslips & P60
Bank statements (three months where your income is paid into). Your bank statements must match your payslips. They will also get scrutinised for other spending, so not declaring a credit card, childcare payments and regular online spending at gala bingo will affect your affordability!
Keep your Payslips and P60 documents in a safe place and ready to go
If you don’t drive and have never been abroad you would be unlikely to have a photo ID. We would recommend getting a passport.
If you are not on the electoral roll currently, check your local authority website about getting registered to vote.
Main Identification (passport / driving licence)
Electoral Roll
Utility Bills (electricity/gas, credit card, mobile phone)
A fact find is completed every time you apply for a mortgage, even if you already own your property and are looking to remortgage to a better deal.
Employment
Credit History
Dependants
You may also be asked:
As well as the fact find, you will be asked about your regular monthly outgoings. This could include mobile phone bills, food and how much you spend on nights out. This is to assess how much you spend and how likely you are to afford mortgage repayments.
As you hand over your bank statements, it would be worth economising for a few months prior to applying for a mortgage.
Every lender is different: we have provided links to affordability calculators for you to be able to review the types of questions asked.
You will be asked for a lot of dates. It’s worth getting prepared:
How long have you lived at your current address? If less than three years, your previous address will be required. Date started with current employer and details of probation period if relevant. If less than one year please supply your previous employer details and dates employed commenced and finished.
Hopefully, you can remember the date of birth of your children, but just in case!
If you care for your parents or another member of your family you will need their date of birth and to declare if they are financially dependent on you.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
When you speak to us early in your house buying process we will be in a better position to proceed once you find your new home.
It would be helpful to have some figures to hand:
We suggest getting an Experian Credit Report to ensure you have a good credit history, especially with a high loan to value mortgage.
We will then compare and source the most suitable deals for you by searching the whole of market with the aim of saving you time and money.
With our main office in Thame, our brokers are located all over the Home Counties so we’re never far from providing the help you need.
