Getting Ahead of The Mortgage Game
It’s incredibly important that you make sure you plan your mortgage journey ahead of time. There are various steps that should be taken before jumping into making offers and full mortgage application, in order to put you ahead of other first time buyers in Hull.
One of these that should arguably be top of your list, is getting a mortgage agreement in principle, prior to looking at properties. Sometimes your plans might not go to, well, plan. Unfortunate circumstances can often crop up, leaving even the most meticulous planners with a challenging process.
Some of these include poor credit, banks not lending enough, or even couples separating mid-process. The latter is not something people can always prepare for and it may lead to you needing to take out a mortgage as a sole applicant, with very little time to re-plan.
Why Planning For a Mortgage is Important
As said, you can often find your mortgage process being met with many different hurdles, the mortgage process can throw many obstacles which is why planning is important. Throughout our time in the mortgage world, we have across many of these.
Below are some common problems we have found customers encounter towards the end:
- The applicant doesn’t have a sufficient deposit.
- Previously ignoring your credit score because it wasn’t important.
- You have been too related when it comes to conducting your bank account.
- You are self employed and your latest accounts don’t look adequate.
By preparing yourself in plenty of time for all eventualities, you can potentially avoid as many of these as you possibly can, ensuring for a much smoother service. Of course some instances are unavoidable, which is where a mortgage broker in Hull can often lend a helping hand.
Saving For a Deposit
Saving up for a deposit can be quite difficult for some, especially when you are trying to make sure you achieve all of your mortgage goals. This is even more so the case for first time buyers in Hull who are currently renting, trying to make that next step.
To get onto the property ladder, you’ll typically need a 5% deposit at least, though this could be higher. The issue is, whilst this seems small, that can actually be a large amount of money, depending on property price. You generally won’t know the exact amount, until you find a property.
Sometimes when you are struggling to make up this percentage, you may be able to get financial support from your family or friends, via a gifted deposit in Hull. Additionally, you might also be able to make use of one of the various schemes in Hull.
These are usually popular with many first time buyers in Hull as a way to get them onto the property ladder. There could be a mortgage scheme out there that is perfect for you.
The Impact of Your Credit Score
Credit scores are a large contributing factor to your mortgage application. If your credit score is in a poor state, you’ll have less of a chance of actually getting a mortgage, maybe even being unable to get one at all, depending on how low it is.
Obviously, this is all dependant on why your score is that low in the first place. Having poor credit because of something like a CCJ or bankruptcy will lower your chances greatly, with the length of time that has since passed being a factor in this also.
Check My File is a fantastic website we would recommend you use if you are wanting insight into your credit score. By doing this, you will be able to obtain a copy of your credit report which our team will be able to look at completely free of charge.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Current Financial Position
When it comes to your mortgage application, it’s important that look at how well you manage your finances. This is because mortgage lenders will carry out a thorough analysis of these, checking your bank statement, income and outgoings.
Gambling transactions is something that they will be on the lookout for. Large and frequent outgoings can make you look unreliable with your money and drastically impact your chances of getting a mortgage. We recommend holding back for a couple of months, to paint yourself in the best light.
If you find yourself being fortunately being given a gifted deposit for your mortgage, we also suggest that the gifter keeps the money in their account, so that you are not having large bank transfers taking place, which would otherwise look suspicious to a mortgage lender.
Are you self employed in Hull?
If you are self employed in Hull, you may find that your process could be a little more challenging for you, than an employed applicant. This is because you will need to provide much more evidence than you otherwise could be faced with.
The evidence you will need to provide as a self employed applicant include your tax year overview and the last 2 years of accounts, to name just a few. More evidence may be required, though this depends on the mortgage lender you are going with.
Other Mortgage Hurdles
Through your mortgage journey, you may come across a range of mortgage hurdles that could limit the quickness of your process or even stop it altogether. Being prepared for these ahead of time can put you in the best position for if these occur.
A mortgage broker in Hull like us will work hard to help you overcome these hurdles. We are here to support you 7 days a week, from early until late. Book online and benefit from expert mortgage advice in Hull, today.
Date Last Edited: 11/13/2024
