Finding the right mortgage has always been challenging, however with the tight economic times we are in now, it is becoming a challenge simply to get a mortgage at all. Most lenders are now asking for a 10% deposit minimum before they will even give you a second glance. On top of this you are expected to have a good income and a clean credit history.
No mean feat, and the prospect can be even more daunting for first time buyers. However, there are ways you can help improve your chances of finding a good mortgage. Below are 5 tips for doing just that:
- Shop around. Mortgage deals can vary wildly between providers so it really is important to look around before you settle on a deal. Using a comparison site can save you time as well as money in this respect, providing you with a selection of deals most suitable for your personal circumstances as quickly as possible.
- Consider the total cost. Rather than simply focusing on the lump sum, be sure to take into account all the additional fees that you will be expected to pay, remembering to keep note of the total cost over the entire length of the deal. It may take a little extra time but it is worth it to get the right deal.
- Seek advice. Before you begin your search it may be useful to get in touch with an independent mortgage adviser or broker, particularly for first time buyers. This will give you a realistic idea of figures and expectations as well as hopefully some handy tips on what to look out for. They will also be happy to respond to any concerns or queries you may have.
- Keep up to date with payments. Missing financial commitments such as a credit card or loan payments could count against you when it comes to getting a mortgage. It is also important to try and reduce your personal debt as far as possible, allowing you to borrow more.
- Avoid extra interest. Be vigilant when it comes to adding extra fees such as mortgage fees to your mortgage, as the interest on these will build up.
Finally, there are a number of little things you can do help the process along, including keeping pay slips and P60s. Be aware of the information the lender requires from you and try and stay on top of this.
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