Many potential buyers shy away from jumping into the property market due to their nervousness about the buying process. One of the leading causes for concern tends to be the mortgage application process and qualification.
We understand that the thought of applying for a mortgage can be scary, even overwhelming. However, it doesn’t need to be!
In an ideal world, to be eligible for a mortgage you will have a good deposit (at least 5% in the current market, although many first-time buyers put down more. According to the Halifax the average deposit put down by first-time buyers during 2018 was 16%). A stable income and good credit history will also help to support your application. However, we don’t live in an ideal world! This is why it’s so important to enlist the help of a highly experienced Mortgage Broker, like Ingard. We will explore every possible option available to find a solution that works for you.
Once you’re ready to make the move, we suggest you follow these five easy steps to help make the mortgage application process as easy as possible:
Even if you have a less than perfect credit score, you shouldn’t be perturbed. There are over 200 financial organisations in the UK currently supplying mortgage loans. Many of the ‘specialist’ lenders are becoming increasingly flexible and offer products designed specifically for people with less than perfect credit. If you want to check your score, we recommend Experian. It’s the largest credit reference agency and free to use.
This includes documents to verify your income (such as payslips or tax returns for the self-employed), your credit history report (point 1) and bank statements (showing your income, outgoings and any savings).
We will work with you to review your income, expenses and financial goals to determine the type and amount of mortgage you could qualify for. We will do everything we can to help you find the best deal available on the market.
A DIP or Agreement in Principle (AIP) is a certificate or statement from a lender to say that ‘in principle’ they would lend a certain amount to a prospective borrower. It demonstrates to sellers that you’re serious about buying. If you’ve had previous credit issues or limited history, it can also provide reassurance around your potential borrowing options. However, it’s not a guarantee! Your mortgage adviser will supply you with a DIP if required.
Whilst it might feel like your mortgage adviser is being nothing but a nosey parker by asking a million and one questions about your personal life, we promise, it’s completely necessary. The UK’s Financial Conduct Authority has strict rules in which advisers are obligated to ensure you can really afford the repayments on your mortgage. In short, there’s no hiding! The quicker you respond to your Mortgage Adviser’s requests for information, the sooner you will be enjoying your new home.
Get ahead of the game! Do your research, collate all the supporting information required to support your mortgage application and then reach out to our professional team of Mortgage Advisers. With our in-depth knowledge of the market and your prior preparation, we will work together to ensure the process goes as smoothly as possible.