We are heading towards Spring, which is traditionally the busiest period in the house buying calendar. It pays to be organised in advance of such a busy time and it needn’t be stressful if you prepare well and seek the right advice.
1. Get mortgage ready
To improve your chances of getting the lowest mortgage rate and the highest loan amount, tidy up your bank statements and credit file ahead of your application.
Some very simple measures, like making sure your credit score is good and that you are on the electoral roll, will help lenders put together a picture of where you have lived and what credit you have had previously to help them in making their decision.
It can be beneficial in advance of your application to manage a small amount of credit to show lenders that you can sensibly manage money.
2. Your purchasing power
To find out how much you can borrow, fill out an online budget planner or ask a mortgage broker to help.
You will need to provide evidence of:
- Annual salary or average profit
- Cost of utilities, transport, food etc
- Monthly credit commitments
- Other regular outgoings
This step will help to give you an estimate of your maximum loan amount. At this point you can achieve a more accurate mortgage offer by applying for an Agreement in Principle (AIP) which can also be called a ‘decision in principle’ or a ‘mortgage in principle’. A mortgage lender or a mortgage broker can produce an AIP for you. The loan amount on the AIP is not guaranteed, it is the amount you can expect in principle.
A good reason to get an AIP at this stage is that it shows estate agents and sellers that you’re a serious buyer. You’ve checked out how much you can borrow and a bank or building society is prepared to lend to you.
3. Gather your supporting paperwork
With the amount you can spend now agreed in principle, you can start looking at properties that are realistic to your budget. Gather the documents you’ll need for your application now.
You’ll need:
- Latest three months’ payslips
- Latest three months’ bank statements
- P60
- ID (usually a passport or driving licence)
- Evidence of savings for your deposit
4. Choosing the right mortgage deal
At this stage there are a number of mortgage options available depending on your circumstances. A mortgage is far more complicated than simply opting for the lowest rate or the best incentives. Finding out the best rate, length of term, which lender to choose, specifying features and understanding insurance are all time-consuming and complex matters.
For something as important as a mortgage it makes sense to get expert help from someone who deals with them day in, day out – a mortgage broker. Whether you’re a first-time buyer, purchasing your dream home, or looking to remortgage, working with a broker is an excellent way to source your mortgage.
One of the main benefits of working with a broker is you can rely on their knowledge and experience of the market. If your application is more complex, for example because of your employment history, the property in question, or your financial situation, a broker will have the experience to help. From applicants with multiple income streams, gifted deposits and self-employed applicants, mortgage brokers can advise you on your best option.
No one enjoys completing forms, especially for something as involved as a mortgage. Once you’ve made an informed choice based on a complete picture of the options available, your broker will prepare and submit your application for you. They’ll follow this up with a personalised report setting out and confirming their reasons for their advice and recommendations.
Alongside your mortgage consultant, at Springtide Capital we will allocate you a dedicated case manager. They will ensure your application proceeds as smoothly and speedily as possible, and they actively follow up with lenders through every step of the process. They can also liaise with third parties, such as solicitors, saving you valuable time and reducing concerns. Have a look at our 5 Star Google ratings to hear how satisfied our customers are with this process.
Understanding how you can protect your mortgage payments and safeguard your home if the worse should happen is vital. Our in-house protection specialists at Springtide can review and arrange the appropriate cover for personal and/or business customers ensuring you are completely aware of the risks and how best to mitigate them.
We are experts at helping clients to find the best possible options for their circumstances. At Springtide Capital our experts monitor all market indicators closely. Speak to us today to see how we could help you find the solution that’s right for you.
Please contact us on 020 8154 7280