Helpful Tips for Quick Mortgage Approval
With recent changes, mortgage lenders have become more strict and fussy with the clients they want to lend too, even looking into people’s lifestyles. Every lender has its own methods in deciding whether it wants to lend money to you. It’s almost like a beauty parade where lenders compare you to its own ideals. If you fit within a lenders criteria, bingo, you’ll be accepted or like a lot of people, possibly rejected. Most lenders score card / criteria is based on several factors, such as; the size of loan, the size of your deposit, employment status and income, outgoings, existing debts and importantly credit rating.
Check your Credit Score
Lenders essentially use a computer system to review your credit report and decide whether or not they want to borrow. Now this is not just a pass or fail, you could almost be a A,B,C or D Rating. This essentially can mean an A rating can borrow more than a B or C, so it’s important to know what your credit rating says about you. Most Credit Reference Agencies (companies who compile credit data) offer a free trail where you can obtain a free credit report for 30 days, this is a must! Correcting errors on your credit file could save you thousands along with avoiding a silly mortgage decline.
• Are all the items relating to you and are they correct?
• If you’re not on the voters roll, make sure you get on it!
• Close any old accounts that are no longer used
• Don’t apply to 10 different lenders at once, keep searches to a minimum; if you are rejected by a lender don’t just throw yourself at the feet of the next one
• Remove any financial links which no longer apply
• Stay within your credit limit and avoid overdrafts where possible
The bigger your deposit the greater security the lender has and so the lower risk they class you. So even if you don’t have a great credit score, if you have 15% + deposit you start to look more attractive to the lender.
Add £100 on top of deposit
Putting down a little bit more than the minimum deposit required can boost your attractiveness to the lender, or at the very least cut the amount of documentation it wants to see. All mortgages have a maximum loan-to-value (the amount you borrow compared to what the property’s worth) but it’s best to borrow just under this, if you can.
Lenders now have to see proof of your income before they can offer mortgages, so it makes sense to get your paperwork together in advance. Sending all the paperwork in one batch speeds up the process as it reduces the chances of your application being reviewed by more people. Many lenders won’t accept printed internet bank statements so you may need your bank(s) to send you original copies. Prepare these a few weeks in advance in case you need to wait for the originals to arrive.
Seek Professional Advice
Mortgage Advisers don’t just sell mortgages, they can help you get a mortgage by drawing on their experience and knowing which mortgage provider to place you with. Good mortgage advisers can also find exclusive deals you didn’t know existed and the best mortgage advisers will hold your hand through the whole process, from start to finish, ensuring the right documents and information is provided at the right time.
Care has been taken to ensure that the information is correct however Heritage Financial Solutions Ltd neither warrants, represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Heritage Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority 618320.