You’ve got to be quick off the mark if you want to buy a home at the moment…
The relaxation of some lockdown measures has sparked a mini housing boom and properties are being snapped up quickly.
Boosted by low interest rates and the extension of the stamp duty holiday, houses are shifting quickly and prices are going up – having risen by 6.5% year on year.
The good news is there are more and more mortgages coming on to the market – including many more for those with just a five percent or 10 percent deposit.
But if you want to win the race to get the home of your dreams, it’s best to get prepared and have an agreed mortgage deal in place BEFORE you go house-hunting.
It has never been more important to do your homework and get ready if you are looking for your first home or a house move.
I can help.
Here are my top tips for getting a ‘yes’ from a mortgage provider and being prepared.
1. Ensure your credit score is correct. Go through one of the credit reference agencies like checkmyfile.com and make sure the information they are holding about you is correct. One in four credit ratings is incorrect and can affect your chances of getting that mortgage. If something is wrong, get it put right!
2. Make sure you are on the electoral register. Contact your local authority and make sure you are registered to vote, at your current address. Again, this can harm your mortgage chances as lenders can’t confirm who you are and where you live…
3. Try to be sensible with your money for at least three months before you make your application. Remember, you are trying to demonstrate that you can manage your finances properly so make sure your bank statements don’t show too much irresponsible spending.
4. Stay in the black! Above all, keep your current account in credit. If you are forever going overdrawn, the lender will think you are a poor risk and unlikely to keep up your payments.
5. Pay off your credit and debit card bills if you can or at least demonstrate a clean record of keeping up your payments.
6. Avoid gambling… It may sound odd, but a gambling habit that shows up on your bank statement is likely to make lenders run a mile!
7. Try to avoid too many credit applications. All your searches for credit deals are recorded on your credit report and if you make too many, it will look to the lender that you have problems. Avoid any new credit deals for up to six months before making your mortgage application.
8. Look at all the offers available – don’t just plump for the first headline-grabbing deal that you spot. There are lots of different mortgages, suitable for people at different stages in their lives – I’ll help you through the mortgage maze!
9. Work out what you can afford. If you set out knowing what you spend every week, every month and every year – add in something for unexpected bills (a rainy-day fund if you like) then see what you can manage, without stretching yourself. It will work out best in the long run.
10. Get proper advice – This is a big decision and one that you want to make sure you get right.
I’m here to help you with all the above and any other queries and questions you might have. And with access to all the mortgage deals, including many not available to the general public, I can ensure you get the right loan in place, ready to go for that house!
Please get in touch if you are in the market for a mortgage.
Due to the current restrictions over coronavirus, I’m not doing face-to-face discussions, but I am happy to do free, no-obligation consultations over the phone on 07767 692 653 at a time to suit you.
Or, if you prefer, you can contact me by email at email@example.com and I will help you with any mortgage or insurance issues. And don’t forget, there are no charges for my services.
In the meantime, stay safe.
For more details on the services I offer please visit www.markgrayshan.co.uk