Getting a mortgage is an intimidating process if you’ve never done it before. Having an expert hand to guide you can be invaluable. Here Belsize Park-based Islay Robinson, CEO of Enness Private Clients, shares his top tips to make you more likely to get an approval on the best possible terms.
1. Get your bank statements in order. A lender will check three or even six months of your personal bank statements, so if you’re planning on getting a mortgage soon think carefully about your spending and what passes through your account.
2. Check your credit file. Experian and Equifax are the two agencies most used by mortgage lenders to check your credit. Both run a free 30-day trial so there is no excuse for not being fully aware of what or may not be on your credit file, and if there are any mistakes getting them corrected.
3. Get registered on the electoral roll. You’re not going to be able to transform your credit overnight but being on the voters’ roll is like gold dust for your score and will help a lender track your residential address history.
4. Pay down any unsecured debt. An outstanding credit card balance or a large monthly loan payment can be the difference between borrowing three and a half and five times your salary, so try and pay down anything you can.
5. Have clear proof of your deposit. Lenders are increasingly hot on showing exactly where your deposit has come from so make sure this is all easily evidenced. If this has been built up over time then you will need to show this through historic statements.
6. Get a good mortgage broker. A good broker will not only guarantee you get the best rate in the market but will package the case for you to make sure you get it on the best possible terms. Whether an interest loan is available to you or whether you can get 75 per cent and not 70 per cent loan-to-value is increasingly down to how a case is presented and knowing which buttons to press. A good broker will know underwriters who make decisions about your biggest financial purchase personally and be able to negotiate on your behalf.
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