Finding the right home can be a time-consuming and difficult task, then you have to think about getting a mortgage. To make the whole process a lot easier and smoother it can be a good idea to plan in advance of applying for a mortgage, making you the most attractive applicant.
Give yourself the best possible chance of getting the best mortgage deal by following advice from Taylor Rose, our partnered solicitor’s must-do checklist.
Register to vote
This is one of the main ways a mortgage lender will verify both your address and identity. So if you’re currently not registered to vote where you live presently, then make getting registered a priority.
This is essential as whist you may have a perfect credit rating, without being a registered voter it’s nigh on impossible to get a mortgage.
If you need to register, you can do it free and online here. If you’re not a UK national or otherwise not eligible to vote, then you can put a notice of correction on your file, stating you have other proof of ID and address you can show lenders.
Check your credit rating
Checking your credit score is healthy is essential before applying for a mortgage. You want to demonstrate to lenders that you’re financially disciplined and responsible enough to pay back your mortgage. So:
- Make sure all debts are paid off on time
- Pay all your bills promptly
- Close any old and inactive accounts
- Don’t apply for extra credit, particularly payday loans
- Try not to go into your overdraft
- If you have any outdated joint current accounts with someone else close them. They may have a bad credit rating and this’ll affect yours.
Your credit history includes any activity for around 6 years. It’s worth keeping in mind that as of 2011, all payday loans you may have taken out will also be on your financial record, whether you’ve paid them off or not. As well as not looking good, they make lenders think you couldn’t manage a mortgage.
Lenders need to see your identification documents. These can be:
This acts as proof of identity and nationality. It also can be used to verify your signature for later signing of mortgage and insurance papers.
Similarly to a passport, a driving license backs up your identity.
These give lenders an overview of your financial income and outgoings also with proof of address. Make sure they are dated within the last 3 months. This does not include mobile phone bills.
Bank statements provide lenders a more in-depth look at the state of your finances, income, outgoings and will show all manner of spending habits and financial clues such as loan repayments, overdrafts etc.
Proof of earnings
Make sure you have copies of savings accounts and current account statements and at least 3 months’ payslips and P60s as these are often asked for by mortgage brokers and/or lender.
If you’re self-employed, generally you’ll need to be able to show proof of earnings for the last 2-3 years along with tax returns.
Avoid making major purchases
Making big purchases such as cars – could go towards a lender rejecting your mortgage application. Lenders will ask a lot of questions about your finances, particularly outgoings, and may ask to see bank statements to back up your claims.
Lenders need to see if you’d still be able to afford your mortgage if rates went up by 6% or more.
Speak to a mortgage broker
Liaise with a good, reputable mortgage broker to make sure you can obtain a mortgage as mortgages can be very tricky to get in this current economic climate and following Brexit.
Speaking to a mortgage broker before making an offer on a property is advisable to ensure that if you need a mortgage, you can obtain one.
If you’re looking to buy or sell a property, then get in touch with a friendly agent at Peach.
Contact our agents on 0207 739 6969 to get the best advice on buying and selling your property.