How to get a mortgage - top tips
If you’re looking for a mortgage, Nottingham Mortgage Services can find the best mortgage for you. Read our tips on how to prepare for your mortgage.
Banks and building societies don’t advertise in the lonely hearts.
Mortgage lenders are not looking at your GSOH, caring side, bubbly personality and fondness for long country walks. They’re not searching for friendship, romance or possibly more. Fat, thin? Meals out, meals in? Not an issue for them unless you’re eating beyond your means.
They sometimes do, however, have very definite ideas about what types of customer they are looking to attract when it comes to mortgages - their perfect match, if you like.
The more of their boxes you can tick, the better your chances of getting coupled up with a competitive mortgage that caters to your every need.
So how do you sell yourself as Mr or Mrs Right?
Nottingham Mortgage Services and Nottingham Estate Agency’s very own mortgage matchmaker: aka mortgage and protection consultant Helen Crowther-Dowey, has a few tips:
You don’t have to be loaded
“The first thing is that you don’t have to be on a mega salary,” says Helen. “Lenders like people on reasonable salaries. You’ve obviously got to be able to afford the mortgage. But being in a stable job with a regular income is more important than how much you earn. Lenders like stability. They don’t tend to like it if you have a zero hours contract job, but some lenders will still offer mortgages if you’re in that situation.”
It helps to have a past
Believe it or not, lenders tend to prefer people who have a history of buying things on credit - providing they’ve paid the bills on time. That shows them you’re good at managing your money and can meet regular repayment schedules. Lenders will be less keen on seeing lots of current debt in your name. Debt is bad because it means less money to pay your mortgage. Try to pay off credit cards and hire-purchase agreements - as well as reducing your so-called “non-committed” expenditure on things like satellite TV subscriptions and gym memberships - before applying for a mortgage.
Be open and honest
If you have missed credit card or hire-purchase payments in the past, don’t “forget” to mention it. The lender will probably find out when a credit score check is run against your name. Some lenders will be relatively relaxed about the odd unpaid mobile bill or other unauthorised dip into the red. Other lenders will use it to decide you’re not for them. It helps to know where you stand before getting too deeply involved.
Lenders love boring
Steady, safe, reliable, dull. Such words are music to a lender’s ears. The more of a stick in the mud you are, the better they like it. Dramatic lifestyle changes can affect finances. If you’re a couple thinking of having a baby (with one of you giving up work) or making another major commitment, it could count against you. You really should tell your mortgage adviser if you’re planning anything drastic in the next few years, says Helen. They’ll be able to talk you through the implications and find a mortgage that remains affordable as your circumstances change.
Woo them with a sizeable commitment
The more money you can put down as a deposit, the better. Lenders love to see a commitment they can count. The bigger your deposit, the lower the loan-to-value ratio will be on a mortgage. That will enable you to access more deals, over longer terms, at better rates. If you can scrape it together, a 15% deposit really helps, says Helen.
Be a solid and reliable home-owner
Gentlemen may or may not prefer blondes, but lenders definitely go ga-ga over solid, reliable types - particularly homeowners. Why? Because they consider such borrowers less of a risk. If you have a property, lots of equity and a consistent mortgage repayment record then you are a lender’s dream date. They will be falling over themselves to offer you good deals, says Helen. What if you don’t have a home or a sack of cash for a large deposit? Don’t worry, says Helen, someone out there will want you. In mortgages, as in love, there are always plenty more pebbles on the beach.
If you’re thinking about getting your first mortgage, remortgaging or moving house, talk to our mortgage advisers. They can give you free advice on which mortgage is best for you.
Visit your nearest branch or call Nottingham Mortgage Services on 0344 481 0013