5 practical ways to boost your chances of getting a mortgage

If you are considering buying a home in the near future, it’s likely you will need a mortgage to do so. Whether you are a first-time buyer or have been on this journey before, the road to becoming a homeowner can be rocky at times.

First, you need to find the perfect home – one for which you are prepared to borrow a large amount of money. Next, you need to convince a mortgage lender you’re capable of repaying that money in a timely, responsible manner.

It sounds simple, but people of all ages are struggling to secure a mortgage. A recent survey of more than 2,000 prospective first-time buyers, published in MoneyAge, showed that only 35% were granted a mortgage on their first application. What’s more, 20% of the survey’s participants had their application rejected more than once.

If you are looking to secure a mortgage on your dream home, we are here to help. Here are five practical ways to boost your chances of getting a mortgage.

1. Check your credit report

Your credit report is an assessment of your creditability based on your financial history. The more impressive your credit report, the more likely a mortgage lender may be to accept your application.

Before applying for a mortgage, it is worth checking your credit report, to get a glimpse of how a lender may view you. Credit reference agencies such as Experian and Equifax hold lots of information about you, so get a copy of your credit report and check that the information is accurate.

Your credit report is what you should pay attention to – and what you can ultimately change for the better. There are lots of factors that can tip the scales on your credit file, including the timings of your credit card repayments and how you manage a bank account.

Checking your credit report can also flag up any errors, giving you time to put these right before you find out too late.

If you pay your loans and credit cards on time and take care of your bank accounts, your credit file may look more impressive to a mortgage lender.

2. Sign up to the electoral register

Signing up to the electoral register is one of the easiest ways to immediately boost your chances of getting a mortgage.

The electoral register is used by mortgage lenders to check your identity when you apply for a mortgage. The longer you have been on the register, the easier it is for them to see who you are and whether your application is legitimate.

Plus, getting on the electoral roll is free and takes two minutes. It’s a simple solution to boost your credibility in the eyes of a lender.

3. Save the largest deposit you can

One of the ways you can boost your chances of getting a mortgage is by saving up a larger deposit.

In simple terms, the higher your deposit, the less risk you pose to a lender and the more likely they are to consider your application. You may also find that you can benefit from lower payments if you can put down a bigger deposit, and you may have access to a wider choice of lenders.

If you can manage to stretch to, for example, a 10% instead of a 5% deposit, it will increase your chances of success.

4. Keep your bank accounts clean for at least 6 months prior to the application

Whoever you apply to for a mortgage, they will typically ask for at least six months’ worth of bank statements.

When they receive your financial information, they will comb it for red flags: Are you paying your debts on time? Are you spending lots of money on frivolous items or do you regularly dip into your overdraft?

You might be the most reliable person in the world, but this doesn’t mean you appear so on paper. Avoid transactions with betting companies and payday loans, for example, as these sources can make mortgage lenders believe you are irresponsible, or that you aren’t living within your means.

The presence of unreliable sources doesn’t bode well for a successful mortgage application, so make sure you scrub your bank account free of red flags for at least six months prior to your application.

5. Speak with a professional

Whether this is your first time applying for a mortgage or not, it is always constructive to consult a professional.

A mortgage expert will be able to access a wide choice of lenders – some of whom are not available direct to borrowers – to find the right deal for you. Their expertise means they will be able to find a lender who can help you, especially if your circumstances are out of the ordinary.

Plus, you can reap other benefits from meeting with a professional. They can remove the hassle by speaking to lenders on your behalf, helping you find the most cost-effective deal, and guiding you through the house-buying process.

Get in touch

If you’re looking to take your first step onto the property ladder and want to maximise your chances of securing a mortgage, we can help. Email enquiries@prosserknowles.co.uk or click here to request a callback from one of our advisers.

Please note

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Buy-to-let (pure) and commercial mortgages are not regulated by the FCA.

Think carefully before securing other debts against your home.

This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.