Following the economic turmoil of the early 21st century, the property landscape has changed dramatically. Gone are the days of one size fits all mortgages; there are now many hoops to jump through before you can fly the nest to your own home. With the added uncertainty surrounding Brexit, the mortgage woes don’t look to be improving anytime soon. But all is not lost, our mortgage tips can help you get prepared for taking that first step onto the property ladder, showing lenders you are up to the challenge!
Work on your credit score!
Alongside the security of a deposit, lenders want to see a history of taking and paying back credit. Whilst you may think – ‘I don’t need a credit card’ – it may pay to have the conversation with your bank. Many high street names offer great deals on new and existing customer credit cards, often giving 0% interest as a welcome bonus. Whilst you don’t need to spend a lot, the simple act of taking credit and then repaying it on time, shows lenders you can manage your money and your debts.
There’s no getting around it – time to save!
Lenders have become a cautious breed, no longer even considering the possibility of a 0% deposit for your mortgage. Typically a 5% deposit will be the minimum you need, with the best mortgage deals being reserved for those with a 20%+ deposit. Being stringent with your money is essential, try looking for a Help to Buy or Lifetime ISA; these are typically government supported schemes, offering to top-up your savings if used to purchase your first home.
Consistency is key
As with your credit score, lenders like to see you as a reliability person in every aspect of your life. Looking to make a career jump? Wait a few months! By showing consistency and stability, lenders will be more likely to place their money with you. Once your mortgage is confirmed, making a career move shouldn’t affect your repayment terms. Whilst a dream for many of us, the uncertainty around being self employed can often turn lenders off! Alongside this, ensure you manage your personal admin effectively. Keep the electoral register, your bank and insurance companies up to date with any changes in address and contact details.
As the time approaches to start seriously speaking with mortgage lenders, make sure to do your research and shop around. With many smaller names offering great deals on lending, taking the time to consider all options can end up saving you thousands in the long run. There are many online comparison sites, offering independent expert reviews across all the big names, helping you to make the smartest decision.
Although the mortgage lending market has taken a blow, all is not lost for first time buyers. Take the time to save the deposits required and consider the personal profile lenders are looking for. Whilst many first-timers get knocked back, it is important to remain determined and work towards the goal of achieving home ownership.
Thanks for reading! We hope you found these tips useful. And of course, if you’re considering buying a property in Darlington, feel free to browse properties for sale on our website.