So, you’re thinking of buying your first house or you’re looking to move up the property ladder? If this is the case then chances are there will be one particular thing on your mind, a mortgage.
A mortgage is a loan that is used to buy a property, you pay this loan back over a number of years. There are many different types of mortgages such as a fixed rate, variable rate or interest only mortgages. The type you choose can depend on the price of the house or your current circumstances.
In this week’s blog we’re going to give you some tips that will help to improve your chances of being successful with that all important mortgage application.
- Deposit – Deposits are a vital part of acquiring a mortgage. The deposit you pay can vary but it usually covers 5% of the overall cost. The deposit you provide will impact the deal you get. Usually the way it works is the bigger the deposit you pay the lower the interest you’ll be charged. Higher deposits can help to increase your chances of being successful in gaining a mortgage. This helps to show that your finances are in order.
- Job security – Job security can help to show that you have stable finances. If you have just started a new job then it might be worth spending some time in this job role before applying for a mortgage. Alternatively, if you’re looking at changing jobs from a current stable role it would be wise to stay in your current role whilst applying for a mortgage. If successful with your application you’ll be free to change jobs as you wish.
- Debts – Having a rack of debts piling up isn’t going to show your finances off in the best light. When applying for a mortgage your finances go under the microscope so you need to show that you can manage your money. It’s important to make sure you clear as much debt as possible. This includes outstanding credit cards bills or other loans you may have. This may take some time to do but being patience and waiting for the right time to apply for your mortgage will help to improve your chances of being successful.
- Teamwork makes the dream work – It’s no secret that buying a house with someone else can help to improve your chances or gaining a mortgage. Whether it’s a partner or a friend, having another person involved will help to build up the capital for a larger deposit. If their credit rating is good then this will help the cause even more. Looking at it from a different point of few, make sure this additional person doesn’t have poor credit history. If they have poor credit history this will only hinder your chances of gaining a mortgage.
- Know what you want – Researching the different types of mortgages and knowing the process will help to make everything run smoothly. If you run in blind without the correct preparation this will hinder the process. Make sure you know the information you need and what type of mortgage you want.
If you’re in need of any more information on mortgages, follow the link to our Financial Services page: http://www.oasisfinancialservices.co.uk/
