Let Us Help You Improve Your Chances of Getting a Mortgage
Top Tips 6,7 and 8
Here at Bristol, Bath and Exeter Mortgages Online, we understand that getting your first mortgage, or even a remortgage, especially if your circumstances have changed, may look like an impossible task, but we are here to help.
We hold your hand from your initial enquiry through to the completion of your purchase. It's not that tricky and there are ways you can improve your odds and boost your chances of a successful mortgage application.
We’ll help you to be as attractive as possible to lenders if you want to get the best mortgage deal. Here are some top tips on how to boost your chances of getting the deal you want, adapted from moneysavingexpert
Tip #6 Carefully manage your available credit
This is all about how much credit you have available to spend on credit cards and overdrafts. It's the difference between your combined debit balances on your cards and bank accounts and your combined credit limits/overdraft limit.
You need to strike a balance between not having too much - as lenders may think you could rack up more debt by spending it all - and not getting too close to your limits, which makes it seem you're at the edge of your finances.
Credit agency Experian says that if you have debts, lenders prefer that they make up less than half your available credit. So, if you've a combined limit of £10,000, they'd rather you use less than £5,000 of it.
If you are using a decent proportion of your available credit, avoid lowering your limits so you're suddenly close to the edge. Similarly, don't have tens of thousands of pounds of available credit unnecessarily - new lenders get twitchy that you could suddenly be far more indebted than you currently are.
This is an art, not a science, and all lenders' views of how much credit you 'should' have differ. Try to stay below 50% in all cases. Of course, if you can pay off debt, you should do so.
How we will help you: We will complete the necessary affordability forms with you so that you are clear from the outset about all income and expenses that a potential lender will consider. We will also ensure that you have a clear understanding of all repayments and costs involved.
Tip #7 Close old, inactive accounts or they can kill your application
If you're not using an account, it may be worth closing it. Leaving it open could not only be a fraud risk but could also mean some of your details may need to be updated.
However, if applying for a mortgage, longer, stable credit relationships are a positive. So, if you've two credit cards, one recently opened and an older one, it's probably not worth closing the older one before the mortgage application as you could lose the credit score boost it gives you. If you are closing an account, just cutting up the card isn't good enough - you must tell the bank you want it closed.
How we will help you: When preparing all the documentation that you will need us to submit, include all accounts and details of all open accounts/cards etc., even if they are not in use, this will help us progress your mortgage more quickly and smoothly.
Tip #8 Want a mortgage? ALWAYS pay ALL your bills on time
It's obvious - so do it.
All missed payments count against you on your credit file, so it's vital to keep up all repayments on ALL your outgoings. Defaults count against you for at least a year, and they'll stay on your file for the next six years. Miss just one mobile phone payment and it could be the difference between getting a mortgage and not.
Set up a direct debit on all accounts to make sure payments are made on time.
How we will help you: We are often dealing with clients months ahead of a purchase or move, so it is important to keep all payments up to date during that period so there is no change or interruption to your application.
Useful Information Guides
Each of our websites as a section full of free, useful and informative information to download.
www.bristolmortgagesonline.com/useful-information, www.bathmortgagesonline.com/useful-information
Whether you are a First Time Buyer or moving house, looking to remortgage or buying an investment property, we would be delighted to get you a great deal on your mortgage. For more information or to book your FREE CONSULTATION please visit one of our websites or contact us
www.bristolmortgagesonline.com 0117 325 1511
www.bathmortgagesonline.com 01275 584 888
www.exetermortgagesonline.com 01392 690 888
email info@swmortgages.com
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