When applying for a mortgage there are lots of factors that will affect your eligibility:
Your credit score
Always check your credit score before applying for a mortgage as this will allow you to view what lenders see when they look at your mortgage application. If its not looking that good, it would be advisable to get it in better shape before applying:
Make sure you report and correct any mistakes or false associations on your report as these could be damaging to your credit score.
Check you are registered on the electoral roll as this is a simple way of boosting your credit score quickly.
Pay regular bills by direct debit as this will ensure you never miss or are late making payments.
Try not to use all your available credit. If you are utilising all the funds available to you it gives lenders the impression you are reliant on credit for regular living expenses.
Those with a good credit score will find they have access to a wider range of financial products with lower interest rates, therefore saving you money.
Most lenders will look at how long you’ve been in your current employment, they usually want to see a decent time spent with an employer so it’s a good idea to have at least 6 months in your existing job before applying. If you are thinking of changing jobs, it may be best to hang fire until you’ve got your mortgage.
The more you have to put down as a deposit the better the choice of mortgages will be that are available to you. Lenders keep their best rates for those with large deposits, so you’ll also benefit from lower monthly payments because you’ll have qualified for a better deal.
Income and outgoings
Lenders will need to see wage slips to show proof of income. You may also be asked to show three months of bank statements so they can look at your outgoings too. It is advisable to curb spending in the months prior to making a mortgage application.
Get professional help
A whole of market mortgage advisor can help make the whole mortgage application process a lot easier. They can advise on the lenders best suited to your situation and requirements, how much you could borrow and will research the whole market to find you the best mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.