Whether you get approved for a mortgage or not might seem out of your control, but there are things you can do to improve your chances.
The bank will look at your current financial situation, and how you’ve acted in the past, to decide how risky they think lending to you would be. The mortgage approval process used to be completely in the hands of the branch manager, but is now largely computerised. This means it is now much more consistent and fair. In the past you could be turned down if the branch manager didn’t like you!
This also means that if you know what the computer algorithm is looking for, you can make sure you tick all the right boxes.
Generally the larger your deposit the cheaper your mortgage rate will be.
Applying for large mortgages that get rejected will negatively affect your credit score. This in turn will reduce your chances of qualifying for the best mortgage rates.
Repaying any debt on your credit card will make you a more attractive option to money lenders because they will see you as a reliable investment.
This will help improve your credit score, and demonstrate your reliability to the lender.
See what deals the market has to offer, they are competing for your business so you’re likely to find a good deal if you spend a bit of time researching.
Someone in long term employment looks like a more secure prospect to a lender than a borrower who has only recently started a job or changes work regularly. If you’re looking to move jobs, it might be worth focusing on securing a mortgage before making the transition.
A potential lender wants to see evidence of frugality. Hold off purchasing a car, major appliance or any expensive furniture until you secure a loan.
Demonstrating that you are a reliable employee will help potential lenders see that you are a committed earner who can confidently make loan repayments.
Increasing your debt by opening any new liabilities will make you appear even more untrustworthy to potential lenders.
It takes 2 minutes. 100% free. No obligation.
Copyright © 2021 GetAgent Limited
We are a company registered in England & Wales, company number 09428979.