Here are our top tips on how to make yourself ‘fitter’ and more attractive to mortgage lenders.
Maximise your mortgage deposit
In the past, loan-to-value (LTV) ratios of 95% (with the buyer bringing a deposit for just the remaining 5% of the property value) were much more common than today. In the current climate, even a 10% deposit is no guarantee of success. Maximise your deposit and you improve your chances of being smiled upon by a mortgage lender. If you can manage to cobble together 20% to 25% of a deposit, your lender should be grinning like a cheshire cat.
If you are a first-time buyer, establish your lending credentials
Take out a credit card, use it, and pay it on time for six months. This will show the mortgage provider that someone else who took a risk on giving you credit was treated fairly in return, and prove to them that you are a responsible and reliable customer.
If you have bought before – botox your credit rating
Even if you have missed a mortgage payment in the past, you can put the best possible face on your credit rating by adding an explanation to your computer record. You can do this by finding out which credit reference agency has your account, and contacting them. Then, potential lenders will see that there was a solid reason for your missed payment. This is particularly sensible if you were temporarily unable, rather than unwilling, to pay.
Make sure you are on the voting register
Lenders like to see potential customers registered as voters. This establishes where you live and that you are established there, and also that you have verified yourself using a photo ID.
Talk to your financial adviser / mortgage adviser
A financial adviser / mortgage adviser dealing with the major lenders on a day to day basis can evaluate you as a mortgage applicant and present your application in the best possible light. This will significantly improve your chances of success.
