Mortgages are a big financial investment, and with so many different mortgages on offer, it is vital that you do some groundwork in order to maximise your chance of finding the best deal.
These simple tips are a great way to get on the right track.
1. Know your financial situation
Be aware of your financial standing and credit rating before making any applications. Lenders will review your credit report before making a decision on what kind of deal they offer you. You should check your credit report is accurate and up-to-date before meeting with any mortgage lenders.
2. Improve your credit report
If you've got a bad credit history, all is not lost if you take steps to improve it. Paying your monthly bills on time, for example, and taking steps to improve your credit rating will help you come across as a more favourable candidate.
If you are getting a mortgage with someone else, they should also check their credit report.
3. Understand the mortgage process
Taking out a mortgage can be a complicated and long process. Start by researching the mortgage market and getting a good understanding of how it works. Read up on key mortgage terms, and get to know the difference between fixed rate, flexible and other mortgage types.
4. Always read the small print
Mortgages can look identical at first glance, but special mortgage conditions and various costs involved over the years of the mortgage can have a big financial impact. Ask questions, and read all the documentation. Yes, this can be quite a bore, but you'll be better off for it.
5. Avoid large purchases
Before going to see a mortgage lender, clear your credit card and loan debts as much as possible. Your total amount of debt is a key factor in getting a mortgage, so avoid taking out additional debt or making large credit purchases until after you have purchased your home.
6. Don't leave footprints
Ensure that lenders understand that you are only seeking a quote for a mortgage, otherwise your credit report will show that you are making multiple credit applications. These could be viewed as lending rejections and harm your chances of getting a mortgage.
7. Take your time to compare
It may seem tempting to take the first mortgage offered to you, but like most things, it's always a good idea to shop around and compare mortgage deals. Approach a number of different lenders, and look at a range of mortgage options.
Related articles
Useful links
- Credit check - check your credit report before applying
- Mortgages - compare mortgages & save on your biggest outgoing
- Property valuation report - buy or sell property at the right price
Comment on this article
We want to hear your thoughts on this article. Do you have your own story to tell? Join in the discussion by leaving your comment below.
ADVERTISEMENT
By comparing gas and electricity plans you could save up to £350 a year on your energy bill. Simply enter your postcode and a few details and the uSwitch energy calculator will tell which plans are the cheapest for your needs.
Make sure you're getting the best home phone deal for your area - compare prices, call plans and customer service for all suppliers. You could save up to £140 in the first year on your phone bills.
Connect to the right broadband deal for you. The uSwitch broadband calculator will work out what sort of package you need, then compare suppliers to find the best on the market - from high speed deals to quadplay bundles.
The digital switchover, when analogue TV services in the UK are switched off, has already begun. Everyone needs to upgrade and switch to digital by the time the switchover reaches their area - find the best value solution here. It's easier than you might think.
Profile
Find out more about your neighbourhood including information about Family Income, Interest in Current Affairs, Housing, Education, Children and Satellite TV.
ADVERT SECTION