How to get a mortgage

Getting a mortgage is a key aim for so many people. The idea of owning your own home is a goal for the majority. For most it will be the biggest purchase they ever make. Understandably, lenders want to make sure you are reliable and will pay back the money you owe. How do you go about provinng this, and how can you increase your chances of being approved for a mortgage?

Don’t expect to match with every lender. There are certain things you can do to increase your chances of being approved:

• Have a large deposit
• Borrow a smaller amount
• Have a regular salary (the higher the better)
• Have an excellent credit rating
• Have little to no debt
• Spend wisely

However, if your performance in one of these areas isn’t great, look for a lender that will take this into account, or even look for a mortgage broker with a company like L&C so they can do the hard work for you.

Check your credit report in advance. That way, you can work out if you need to pay off debt or make any other changes before a lender starts examining your file. The three credit reference agencies in the UK are Experian, Equifax and TransUnion – there are ways to check them for free nowadays.

Ensure you are on the electoral roll. You can register here. Lenders use information from the electoral roll when doing identity checks, so it is crucial you have done this.

Manage your credit carefully. You don’t want to be using lots of your available credit, as lenders will worry you are struggling to cope financially. However, you don’t want lots of credit available to you, as they will be concerned you will suddenly go on a spending spree. Close accounts that have been dormant for a while, but keep longstanding active accounts, as this is a sign of stability and is a positive.

Good luck!