How to get a mortgage: 10 top tips from a mortgage adviser

Getting a mortgage can be an overwhelming experience for the first-time buyer or someone who hasn’t bought a property in years. Luckily, with some guidance and preparation, you can put a few steps in place to make the dream of homeownership a reality!

1. Speak to an independent mortgage adviser

You can get a better deal on your mortgage by shopping around, comparing mortgages and getting advice from independent mortgage advisers. They will look take care of your application during the whole process. An independent mortgage broker has access to a wide range of lenders, spanning from high-street banks to more specialist lenders. If you are a first-time buyer with limited experience and knowledge of the mortgage process, a free brokerage like Visionary Finance will be able to save you money during the mortgage application process as well on your monthly mortgage payments.

2. Don’t hide anything from your adviser

Don’t hide anything from your adviser, the truth always comes out! If you’re asked about your income and try to lie, you could be denied a mortgage by the lender. You may not get the best deal if you don’t tell the truth. Some lenders offer better rates for certain types of loans (like fixed-rate mortgages) than others do—and some have other requirements that need to be met before they’ll give out their lowest rates. For example, one lender might only offer its best rate on a 3-year fixed mortgage while another offers it on both 3-year and 5-year fixed options. You may not be able to get a mortgage at all if you aren’t honest about your circumstances. The same goes for whether or not any other debts are eating up part of your budget. Having debt can impact how much house you can afford since some lenders factor in debt when approving loans.

3. Have your paperwork ready in advance of applying for a mortgage

On the day you apply for your mortgage, it is really important to have all of your documents and paperwork ready. You will not be able to apply without having done this.

This includes:

1. Bank statements and pay slips
2. Proof of deposit
3. Proof of identity

4. Don’t open new credit accounts before you apply for a mortgage, or during the application process

The reason is that if you do this and then go on to default on your mortgage payments, the lender will have grounds to repossess your home. If this happens, it’ll count against any future attempts at getting a mortgage. It could potentially affect other financial products too.

5. If you don’t think you’ll be accepted, get advice first – it could save you money

If you think your application is likely to be rejected, it’s important to get advice first.

This will help to avoid any unnecessary delays and costs – after all, home ownership can be stressful enough as it is!

If you don’t think your application will be accepted, contact a mortgage adviser or broker who can advise on the best course of action for you.

6. Be realistic about how much you can afford to borrow

Be realistic about how much you can afford to borrow. This is the most important part of getting a mortgage. The more you borrow, the higher your monthly repayments will be. It’s important to think about how much money you need each month and work out whether that amount is affordable for you.

Be prepared to wait until you can afford more. If the amount of money available from your savings isn’t enough for a deposit on a property in line with your budget, then consider saving up some extra cash before applying for a mortgage. It may take several years before your finances are sufficiently robust for this but if this means being able to buy a house that is more suited to you and your preferences then it’s worth doing so!

7. Speak to an insurance adviser

If you’re buying a house, you’ll have to take out insurance for it. But some things aren’t necessary and will cost more than buying them separately. These include mortgage indemnity insurance (which protects your lender if something happens to your property) and life cover (which pays off the mortgage if someone dies). Speak to an experienced insurance adviser before taking out any policies, so they can assess what you will need and at the best value.

8. Keep an eye on your credit score

Your credit score is a number that lenders use to gauge how risky it is to lend you money. It’s based on information from your credit report, which can be accessed by lenders and other service providers such as utility companies.

A good credit score shows that you’ve been responsible with your finances in the past, so you’ll probably be able to repay your mortgage loan without any problems. It also means that you’ll pay less interest on any borrowing you do in future.

A bad or poor credit score might mean that a lender will think twice about giving you a mortgage. Poor credit history means the lender might charge higher fees for a mortgage than someone with a better score would have to pay for their loans.

Getting a mortgage with a poor credit history is not difficult with the right mortgage adviser. We have helped several clients be approved for mortgages despite a history of mismanaged credit. If you have a poor credit history, contact us and we can advise you on your options.

9. The bigger the deposit the better

The bigger the deposit, the better.

That’s because a larger deposit can help you get a lower interest rate on your mortgage.

If you’re struggling to save, then combining savings, gifts and income may be an option for building up a larger deposit.

10. ALWAYS pay your bills on time

Always pay your bills on time. If you don’t, you could damage your credit rating and then be unable to get a mortgage. Without a mortgage, though, you won’t be able to buy the house of your dreams! So always pay the bills on time!

The mortgage process can be overwhelming but with some guidance, a little planning and preparation, and the right attitude, you can buy your dream home

1. Be prepared
2. Have your paperwork ready
3. Don’t rush into signing up for a mortgage
4. Don’t hide anything from your adviser
5. Keep an open mind about the whole process, and don’t get too excited about the numbers until you’ve been through it all.

Even if you’re not sure how much you can afford, getting a mortgage adviser to help you with the process of applying for one is worth it. They will work with you to make sure that your finances are in order before starting the application and will also be able to advise on what products are best for your circumstances.