Would you like to enhance your chances of getting a mortgage?
1. Use a mortgage broker
Chances are, if you’ve had previous credit issues, you’ll fall outside of the typical high street mortgage criteria, but specialist lenders could help. Specialist lenders typically tend to operate through brokers so it’s a good idea to seek independent mortgage advice. Mortgage brokers will give you access to specialist lenders and help you find the best deal for your circumstances.
2. Don’t use a payday lender
Regularly resorting to payday lenders is a red flag that you’re not coping with your existing debts and may be unable to take on more borrowing in the form of a mortgage.
3. Get your documentation ready
Lenders need to see proof of everything you declare to them, so be sure to gather all the relevant documentation you need to make the application process as smooth as possible.
4. Check your credit report
Your credit report shows you what lenders see when they do a credit check and is available for you to read whenever you want. By checking your credit report preceding your mortgage application, you can spot any mistakes or issues to your adviser and work at resolving them ahead of time.
5. Start to budget
In the time preceding your mortgage application, it’s important to start living within a budget as lenders will look through at least the last three months of your bank’s statements. Budgeting effectively and living within your means proves you’re responsible with money. Not only will it strengthen your mortgage application, but it will also free up funds to allow you to repay any outstanding debts.
6. Set up direct debits
Missing a payment on a credit card, loan, utility bills or other form of credit will show up on your credit report as a default. By setting up direct debits, it means you won’t miss a payment.
7. Don’t leave an unpaid bill
Though you might think that the damage to your credit report is already done, it’s still important to repay any debts as soon as you can. Lenders will treat resolved late payments differently to unpaid bills that have simply been left.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.